An investment firms offers its customers a 30-year savings plan in an IRA account with the following terms: 7% interest for the first five years, 9% interest for the next 15 years, and 6% interest for the final ten years.
The deposits in the plan are annual with the first deposit scheduled a year from today.
The annual deposits are a fixed amount during the 30-year period.
The balance of the account will be paid in full at the end of the 30-year plan. If an infester saves $24,000 per year, what is the balance at the end of the 30-year plan?
What is the value of the annual fixed deposit needed to secure $2,000,000 30 years from now?
Provide a 12 year mortgage amortization table of a $300,000 loan with an annual percentage rate of 3.875%. Also provide a graph illustration of this amortization table. Kate celebrates her 5 years birthday today.
Her parents want to save for 4 years of her college expense, starting at age 18. In other words, on her birthdays 18, 19, 20, 21, they plan to take out $30,000 to pay for the college tuition. How much money her percent have to save each year on her birthday of age 5, 6, 7, .....to 17.
Assume the investment return is 5% per year. Also provide an education saving sinking fund chart.