Q: Sam wants to be able to make withdrawals of 60000 a year for 30 years after retiring in 35 years How much will she have to save each year up until retirement if her account earns 7 interest?

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$973.44 Mostly your account would become dormant. Most banks have some specifications of the number of minimal transactions that need to be done on an account for it to remain active. If you do not have any deposits/withdrawals for more than 1year the account would become dormant and you may have to visit the branch and re-activate it.

This is a very tough question, with tonnes of working, so I will give you the answer but if you want the working, send me a message and I will get it to you.It took me a while to work it out, and it may not be 100% accurate, but I think it is pretty close...$179,200.72If you have any problems just leave me a message

It depends on the terms and conditions etc of the type of savings account. Some savings accounts have interest calculated monthly (on daily balances), and credit the amount of interest to the account monthly. Others do an annual calculation of interest, also based on daily cleared balances, but only credit the account once a year. If interest is credited each month, each subsequent month you also get interest on the interest previously credited to the account. Alternately, if the interest is paid/credited only annually, the sum credited is the total interest for the year. Interest rates are quoted taking these factors into account. An account which credits interest monthly will always pay a slightly lower Gross rate of interest than an account that has an annual interest period. This is to take account of the fact that the return on an account where the balance is increasing monthly (due to interest being added each month) will always give a higher return in the year compared to an an account with the same Gross interest rate, but which is calculated and credited only once a year.

No. If the account is earning interest the current amount should be greater than the initial deposit.

result= (original)x(1+ rate/frequency)^ (frequency)(time) x= (900)x(1+0.04/1)^ (1)(2) x= 973.44

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Omaha School Employees' Retirement Systems(OSERS) is the high interest retirement account in Omaha,NE, it gives a 2% credit by multiplying the years of retirement.

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An IRA (Individual Retirement Account) is a type of investment account that offers tax advantages to help individuals save for retirement. Contributions to a traditional IRA may be tax-deductible, but withdrawals during retirement are taxed as ordinary income. On the other hand, a Roth IRA allows for after-tax contributions, meaning contributions are not tax-deductible, but qualified withdrawals during retirement are tax-free. Both IRAs provide individuals with a means to save for retirement with potential tax benefits.

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compunding

compunding

One limitation of a savings account is the amount of withdrawals you can make per month. Unlike a checking account, which let's you withdraw money until there are no funds left, savings accounts are restricted to 6 withdrawals per month. Another limitation is that withdrawals usually can only put into a linked checking account- you can't directly transfer funds from a low-interest savings account to a savings account with a higher yield.

A good way to start your retirement account is to open a simple interest-bearing savings account. Every paycheck, place ten percent of your total pay into the account. It's surprising how fast it builds.

It depends on the compounding frequency of the rate of interest earned on your bank account. Some banks compound the interest yearly and some do it quarterly. If the interest is compounded every year you will have 973.44 at the end of 2 years.

Generally speaking, A savings account is one which pays interest on the funds held in the account, and usually has restrictions on withdrawing funds (usually less than 3 withdrawals in a 30 day cycle)

$973.44