PERSONAL FINANCE - Future Value/Present Value
Please show all calculations.
1. You have a nest egg put aside to purchase a home of $7500. You think you'll be ready to buy the dream house in 5 years. How much will you have then? you have the money at 6%.
2. You have a child 3 years old. She will be going to college in 15 years. How much will you have in her account if you invested $5000 at 8% now?
3. You have 25 years to retirement. You have $30,000 in various retirement accounts right now. They are earning approximately 8% return each year.
a. How much is it going to be worth when you retire in 25 years?
b. You think you need to have $400,000 "in the bank" at retirement to live the lifestyle you are accustomed. In addition to (a), how much more do you need?
c. How much do you need to save each year (if it is invested at 8%) to reach that goal of $400,000? per month?
4. You want to give your two children a $25,000 gift when they get to be 25 years old.
a. How much do you need to invest for Johnny if he turns 25 in 15 years form now. Invested at 7%. Invested at 8%.
b. How much for susie if she turns 25 in 12 years from now? Invested at 7%. Invested at 8%.
5. You have reached the magic retirement age with $250,000 in your accounts. How much will you get per month if you get equal payments for:
a. 15 years - Invested at 7%.
b. 30 years - Invested at 8%.