Mr. Handsome would like to accumulate $1 million in his pension fund. If the annual interest rate is 12 percent, how long will it take Mr. Handsome to achieve the goal? (Assume that he will deposit the same amount of $300 each month into his pension fund, using monthly compounding.)
Q: A civil engineer planning for her retirement places 11% of her salary each year into a…
A: First year retirement fund deposit (D1) = $180000 * 11% = $19800 Growth rate (g) = 2% n = 13 years r…
Q: Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000…
A: Ordinary annuity refers to the set of periodic payments that a depositor makes into an investment…
Q: An engineer will deposit 10% of her salary each year into a retirement fund. If her current annual…
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…
Q: As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept…
A: Present value is today's value of future cash flows. It is computed by discounting the cash flows…
Q: Bill plans to fund his individual retirement account (IRA) by contributing $2,000 at the end of each…
A: Solution Step (1) Individual Retirement Account [IRA] An individual retirement account (IRA) may be…
Q: Suppose your mother has worked for 40 years and has accumulated $1,000,000. She wishes to begin…
A: The present value of the amount represents the current value of the future cash flows. The…
Q: which is the better option and by how much?
A: Future value i.e. FV of an annuity due shows the worth of total amount of regular payments made at…
Q: A civil engineer planning her retirement will deposit 10% of her salary each year into a…
A: Using formulae, Future Value =Present Value * (1+rate)^n Where n = no. of years till end
Q: Mr. Wilks is 30 years old today and wants to set aside an equal amount at the end of each of the…
A: Computation of present value at the age of 60 is as follows:
Q: a. A pension fund has to pay out $750,000 to the retirees at the end of every month for the next 50…
A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…
Q: Kun is thinking about investing $4,000 at the end of each year for 30 years in a tax-sheltered…
A: Annual investment (P) = $ 4,000 Interest rate (r) = 8.5% Number of annual deposits (n) = 30
Q: What is the amount of the payments that Tom Brokaw must make at the end of each of 8 years to…
A: Amount required = $70,000 Interest Rate(r) = 8% Years(n) = 8 Let Annual Payments = P
Q: 9. Daniel Plans to fund his individual retirement account, beginning at the end of each year with 20…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…
A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
Q: As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept…
A:
Q: James plans to fund his individual retirement account, beginning today, with 20 annual deposits of…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: A civil engineer planning for her retirement places 11% of her salary each year into a…
A: As per the information provided the engineer will draw an amount of $160,000 at the end of the first…
Q: You deposit $13,000 annually into a life insurance fund for the next 10 years, after which time you…
A: The future value is the value of the amount in future that has to be paid or received at future.
Q: At the age of 35 John began contributing 10,500 Php every month to a retirement fund. If his money…
A: Using excel nper function
Q: Jay has just retired and will receive a pension of 3,857 per month for 20 years. After which he…
A: The Present Value is the current value of a future amount i.e., it is the amount to be invested/…
Q: An individual's salary is now $50,000 per year and he anticipates retiring in 30 more years. If his…
A: The amount which will be required at the time of retirement is that amount which a person expects to…
Q: Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a…
A: Here, Required Amount is $1,000,000 Time Period (n) is 20 years Interest Rate (r) is 9% Compounding…
Q: Beginning a year from now, Bernardo O’Reilly will receive $20,000 a year from his pension fund.…
A: Present value is the current worth of future payments from the specific investment.…
Q: How much does your client need to contribute to a fund each month for the next 25 years (first…
A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…
Q: Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r FV = $80,000 n = no. of compounding period 10*12…
Q: You estimate you need to supplement your social security payments with monthly withdrawals of…
A: The question is based on the concept present value of annuity payment Formula as, Pv=pmt*1-(1+r)-nr
Q: Mr Santos wants to get a lump sum of money when he retires at the end of 30 years. He then deposits…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Ted Houser wishes to accumulate a fund of $40,000 for the purchase of a house and lot. He plans to…
A: The computations as follows: While considering the table of future value of annuity, it can be…
Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…
A: The annuity is a series of cash flow wherein an equal amount is paid every period.
Q: Allen is planning for his retirement pension fund. He expects to receive £20,000 a year for 30 years…
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: Mr COVID is 25 years old and is planning to accumulate 10 million pesos on the day of his retirement…
A: Accumulation at retirement = 10,000,000 N = Number of withdrawals = 29 years and 6 months i.e. 354…
Q: A civil engineer planning for her retirement places 9% of her salary each year into a…
A: Salary = $160,000 Percentage in the retirement plan = 9% Growth rate = 5% Time period = 16 years…
Q: Henry Quincy wants to withdraw $30,000 each year for 10 years from a fund that earns 8% interest.…
A: How much must he invest today if the first withdrawal is at year-end? The present value of ordinary…
Q: Mr Santos wants to get a lump sum of money when he retires at the end of 30 years. He then deposits…
A: The interest rate is the amount charged by a lender to a borrower and is expressed as a percentage…
Q: Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $1,000,000 in his retirement…
A: Given: Retire in : 30 years Amount : $1000,000 Interest rate : 12%
Q: A 35-year old man is considering a lavish personal pension plan paying 50,000 monthly annuities for…
A: Since you have asked a question with multiple sub-parts, we will solve the first three questions for…
Q: An individual who makes $32,000 per year anticipates retiring in 30 years. If his salary is…
A: Future Value is the value of current investments at a certain future date at the assumed…
Q: Bill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What…
A: Future value table: This table shows the future amount of investment at specific rate and periods.…
Q: Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly).…
A: To Find: Monthly Payout or how much she will receive per month
Q: James plans to fund his individual retirement account, beginning today, with 20 annual deposits of…
A: Annuity due formula: Future value = Amount*((1+Rate)^n -1)*(1+Rate) / Rate
Q: 1. Mr COVID is 40 years old and is planning to accumulate 10 million pesos on the day of his…
A:
Q: George plans to retire in 15 years. His current household expenses are $91000 per year. He estimates…
A: Estimate Retirement Expense = Current household expenses - Expenses that are not required after…
Q: Sally Medavoy will invest $8,000 a year for 20 years in a fund that will earn 6% annual interest. If…
A: Annual investment = $8,000 Interest rate = 6% Number of years = 20 Future value of annuity when…
Q: Arnie agrees to contribute $2,300 to the road fund at the end of each year for the next 12 years.…
A: Calculation of amount should jack deposit to equal Arnie’s annual deposits: Answer: Jack should…
Q: On his 21st birthday, Silver put P300,000 into a retirement fund account that pays 10% interest per…
A: we need to use compound interest formula to calculate value of retainment fund at the age of 65…
Q: Barney Rubble expects to retire in 10 years and would like to accumulate £100,000 in his pension…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask…
Q: John Jones has just retired after many years with the telephone company. His pension funds have a…
A: Annuity refers to series of equalized payments that are made at end or begin of period for constant…
Mr. Handsome would like to accumulate $1 million in his pension fund. If the annual interest rate is 12 percent, how long will it take Mr. Handsome to achieve the goal? (Assume that he will deposit the same amount of $300 each month into his pension fund, using monthly compounding.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.You wish to retire after 22 years; at which time you want to have accumulated enough money to receive an annuity of $68,000 a year for 25 years of retirement. During the period before retirement, you can earn 6 percent annually, while after retirement you can earn 4 percent on your money. What annual contribution to the retirement fund will allow you to receive the $68,000 annually?Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $750,000 in his retirement fund by that time. If the interest rate is 10% per year, how much should Mr. Hopper put into his retirement fund each year in order to achieve this goal? (Assume that he makes payments at the end of each year.)
- For planning purposes, an individual wants to be able to spend $90,000 per year, at the end of each year, for an anticipated 30 years in retirement. In order to fund this retirement account, he plan to make annual deposits for 20 years at the end of his each working year. What is the amount he need deposit each year to fund his desired retirement spending? Use 10% as an annual simple rate for all calculations.Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He wishes to receive a payout of $1,500 per month for twenty-five years. (a) How much money must he deposit if his money earns 7.3% interest compounded monthly? (Round your answer to the nearest cent.) (b) Find the total amount that Dean will receive from his payout annuity.Jay has just retired and will receive a pension of 3,857 per month for 20 years. After which he begins receiving a social security benefits of 2,000 per month for 5 years at 7% compounded monthly. What is the present value of his pension?
- Mr. X to retire at age 65 and believes that he can live comfortably with an annual pension of $76,000, to be withdrawn at the beginning of each year in his retirement. Suppose his pension account will generate 9% of annual interest rate, and suppose Mr.X believes tgat he will live to 100. In order to have sufficient money for his retirement , what is the minimum amount that Mr. X must have saved up in his pension account at the time of his retirement at of 65?Suppose your mother has worked for 40 years and has accumulated $1,000,000. She wishes to begin receiving an annual payment beginning next year, and continuing for another 20 years. If a pension plan will guarantee her an annual interest rate of at least 5% effective, what is her payment?Manuel is preparing for an income fund for his retirement. He wants to receive P 15 500 at the beginning of each month for the next 25 years. The income fund pays 10.5% per year compounded monthly. How much must Manuel deposit now to pay for the annuity?
- On his 40th birthday, Mr. Ramos decided to buy a pension plan for himself. This plan will allow him to claim 10,000 quarterly for 5 years starting 3months after his 60th birthday. What one-time payment should he make on his 40th birthday to pay off this pension plan, if the interest rate is 8% compounded quarterly?Oscar is looking forward to retirement in a few years when he will have completed 20 years of pensionable service. Oscar's pension plan provides an annual pension benefit of 1.5% of average career earnings for each year of pensionable service. Using information from Oscar's pension statements, he estimates his career average annual earnings will be $50,000 when he retires with 20 years of service. Given these assumptions, calculate Oscar's annual pension benefit that he can expect to receive when he retires. $7,500 $10,000 $15,000 $20,000You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 10 years. Your twin sister does the same starting at age 45 and makes the contributions for 20 years. Both of you earn 8 percent annually on your investment. What amounts will you and your sister have at age 65? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.
