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Mathematics, 24.05.2020 05:57 scasemere

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1) Gen invests $2400 in a savings account that pays interest at a rate of 4% per year, compounded annually. She leaves the money in her account for 10 years, and she does not invest or withdraw any money during this time.
a) calculate the value of her savings after 10 years.

The rate of inflation during this 10 year period is 1.5% per year.
b) calculate the real value of her savings after 10 years.

2) Yejin plans to retire at age 60. She wants to create an annuity fund, which will pay her a monthly allowance of $4000 during her retirement. She wants to save enough money so that the payments last for 30 years. A financial advisor has told her that she can expect to earn 5% interest on her funds, compounded annually.
a) calculate the amount Yejin needs to have saved into her annuity fund, in order to meet her retirement goal..

Yejin has just turned 28 years old. She currently has no retirement savings. She wants to save part of her salary each month into her annuity fund.
b) calculate the amount Yejin needs to save each month, to meet her retirement goal.

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