# Finance Math

Rafael Sandino’s parents are in their retirement years. They just received \$501,000 after taxes from the sale of their vacation home and decided to invest the money in a bond mutual fund. They chose a no-load mutual fund that yields 6%. a) How much will they receive each year? b) How much would they need to invest if they needed to earn \$36,000 per year?

1. 👍 0
2. 👎 0
3. 👁 94
1. .06 * 501,000= 30,060

.06 x = 36,000
x = 36,000/.06

1. 👍 0
2. 👎 0
posted by Damon

## Similar Questions

1. ### Finance

You want to be able to withdraw \$25,000 from your account each year for 20 years after you retire. If you expect to retire in 25 years and your account earns 7% interest while saving for retirement and 6.7% interest while retired

asked by Andy on April 27, 2016
2. ### Finance

Molly just received a \$5,000 inheritance. She wants to open an IRA for retirement, 40 years from today. If she can earn 11% per year in her IRA, how much will she be able to take out annually for 20 years in retirement? A) \$24,182

asked by Jennifer on December 16, 2018
3. ### Finance

Simon wishes to have \$400,000 in a retirement fund 20 years from now. He can create the retirement fund by making a single lump sum deposit today. How much would Simon need to have on deposit at retirement in order to withdraw

asked by Lore on March 15, 2014
4. ### math

3. (TCO A) The following questions are worth 5 points each. Please show all work. a. Inflation is expected to average five percent for the long term and Mr. Smith earned \$74,000 this year, how much must he earn in 20 years just to

asked by Steven on August 5, 2012
5. ### Finance

You are now 30 years old. You plan to retire in 30 years, and expect to live for 30 years after retirement, that is, until you are 90. You want a fixed retirement income that has the same purchasing power at the time you retire as

asked by Anonymous on February 4, 2010

John Smith wants \$80,000 per year in his retirement. He plans to be in retirement for 30 years. He has 25 years to work. Assume an interest rate of 7% for the next 55 years. How much does he need to deposit at the end each year

asked by Ashley on March 22, 2010
7. ### Finance

Mr Joe is trying to plan for retirement in 10 years, and currently he has RM150,000 in a saving account and RM250,000 in common stocks. In addition, Mr Joe plans to add to his savings by depositing RM8,000 per year at the end of

asked by Noorain on November 18, 2015

You have just received good news. You have inherited \$1,000,000 from a distant relative. You have to meet two goals with the money: one, start a small business and not spend more than \$250,000 in total in the next 2 years, and

asked by Anonymous on June 21, 2014
9. ### corporate finance

you are thinking of retiring. your retirement plan will pay you either \$250,000 immediately on retirement or \$350,000 five years after the date of your retirement. which alternative should you chose if the interest rate is a) 0%

asked by SHALLY on April 21, 2010
10. ### finance

Mrs. Kay who is 24 years old plans to retire at the age of 60. Mrs. Kay would like to be able to withdraw \$120,000 per year from her retirement account for 40 years after retirement beginning a year after her retirement. She

asked by julia on April 17, 2013

More Similar Questions