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Bilbo plans to retire in 25 years (t=25) from today and to save $4,000 per month until his
retirement with the first saving starting from today (t=0). He expects to have $2,000
monthly expense starting from the first month after year 25 (t=25) through year 50 (t=50).
He also wants to leave an amount of inheritance to his son Frodo at year 50 (t=50). The
discount rate for Bilbo’s entire life is 6% (APR). Suppose Bilbo strictly follows his
financial plan,
a) how much savings would Bilbo have in year 25 (t=25)?
b) how much at most would Bilbo’s inheritance be in year 50 (t=50)?
no excel please
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- Minnie owns a qualified annuity that cost 78,000. The annuity is to pay Minnie 650 per month for life after she reaches age 65. Minnie turns 65 on September 28, 2019, and receives her first payment on November 1, 2019. a. How much gross income does Minnie have from the annuity payments she receives in 2019? b. Shortly after receiving her payment on October 1, 2034, Minnie is killed in an automobile accident. How does the executor of Minnies estate account for the annuity on her return for the year 2034? c. Assume that the accident does not occur until November 1, 2043. How does the executor of Minnies estate account for the annuity on her 2043 return?Joanna is making a financial plan for her retirement. Today is her 35th birthday, and she receives $150,000 from her grandmother's will. She plans to retire 25 years from now when she turns 60. Once she is retired, she will need to withdraw $4,000 a month for 15 years, starting on the day she retires. She anticipates earning 6% compounded semi-annually for the entire 40 years. How much of her inheritance money must be invested today to meet her retirement goal?Mary plans to make the following contributions to her retirement account: $10,000 for each of the next ten years, and $12,000 for each of the ten years after that. If her savings earn 5%, how much will she have at the end of the 20 years. Ignore taxes and assume that the contributions are made at the end of the year.
- Ms. Ieda Silva plans to retire in 28 years and expects to live for 25 years after retirement. She is preparing a savings plan to meet the following objectives. First, after retirement she would like to be able to withdraw $20,000 per month. The first withdrawal will occur at the end of the first month after retirement. Second, she would like to leave her son an inheritance of $500,000 when she passes on. Finally, she would like to set up a fund that will pay $15,000 per month forever to her favorite charity after she passes on. These payments to the charity will start one month after she passes on. All monies can earn 10 percent annual rate compounded monthly. How much will she have to save per month to meet these objectives? She wishes to make the first deposit a month from now and the last deposit on the day she retires. A.$983.24 B.$1,105.11 C.$1,550.51 D.$1,202.17 E.$603.38 F.$430.71 G.$1,014.02 H.$1,306.52Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave in the fund a sum worth $1,000,000 to his nephew who is under his charge. The fund will continue to earn 12% compounded monthly. How much should the monthly deposits be for his retirement plan?Tõnu has two financial goals. His first wish is to retire 40 years from now and receive a pension of 10,000 euros every month for 20 years. Secondly, his big desire is to leave an inheritance of 1,000,000 euros to his daughter Karin after his death, which will occur exactly 20years after retiring. It is known that for the first 10 years starting from today, Tõnu can save a maximum of 1,200 euros each month. Assume, that the interest rate is 6% per year (or 0.5% per month), and it does not change over the entire observed period. Question: Given all the previous information, try to find out how much Tõnu needs to save additionally each month after the first 10 years have passed?
- Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of5 years. She will have enough to pay for the trip if she invests $5,000 per year until thatanniversary and plans to make her first $5,000 investment on their first anniversary. Assume herinvestment earns a 4 percent interest rate, how much will she have saved for their trip if theinterest is compounded in each of the following ways?a. Annually b. Quarterly c. Monthly6Suppose Mr. Ali wish to retire thirty years from today. He has just recieved a lump-sum amount of $30000 from inheritance, he expect that he may need $50000 on the marriage of his daughter 20 years from today. He determines that he needs $15000 per year once he retires, with the first retirement funds withdrawn one year from the day he retires. He estimates that he will earn 10% per year on the retirement funds and that he will need funds up to and including in his 20th birthday after retirement. a) how much he needs to deposit an account today so that he has enough funds to meet all his future expenditures? b) how much he needs to deposit each year in an account, starting one year from today, so that he may have enough funds to meet all his future requirements? c) suppose that an investment promises to pay a nominal 11.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounding (a) annually? (b) semi…EZ Leifer plans to retire at the age of 65 and believes he will live to be 90. EZ wants to receive an annual retirement payment of $50,000 at the beginning of each year. He seta a retirement account that is estimated to earn 6 percent annually. a. How much money will EZ have in the account when he reached 65 years old? b. EZ is currently 29 years of age. How much must he invest in this account at the end of each year for the next 36 years to have the required amount in his account at age 65?
- The Ali plan to retire and start receiving their Social Security benefits at the same time, when Jimmy is 67 and Lucy is 62 years old. Their monthly Social Security retirement benefits at those ages in today's dollars are estimated to be $3,200 for Jimmy and $2,000 for Lucy. They think their expenses in retirement in today's dollars will be 70% of their total cash outflows now. Other than Social Security, they will rely on their retirement savings in order to meet their retirement expenses. They want to assume they will die in the same year, when Jimmy is 95 and Lucy is 90 years old.Determine what the payments will be in the distribution phase. These will be the withdrawals Jimmy and Lucy will need to take monthly from their accounts, in order to meet their retirement expenses. How much is that monthly amount?Note: this question is asking about the withdrawals they will need, not about the expenses they will be incurring monthly.Derek can deposit $19,305.00 on each birthday beginning with his 26.00th and ending with his 69.00th. What will the rate on the retirement account need to be for him to have $3,825,432.00 in it when he retires?Mr. Agunton is planning for her retirement. He is 30 years old today and would like to have N500,000 when he turns 55, he estimates that he will be able to earn 8 percent rate of return on her retirements over time; he wants to set aside a constant amount of money every year (at the end of the year to help achieve his objective. How much money did Agunfon invest at the end of each of the next 25 years to realize his goal of N500,000 at the end
