Your grandfather planned his retirement fund when he was 30 years old. He put $2,000 in a savings plan yielding 12% per annum until he was 60. How much money did he have when he retired at 60?
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- When Aroon was a small child, his grandfather established a trust fund for him to receive $20,000 on his 35th birthday. Aroon just turned 23. What is the value of his trust today if the trust fund earns 5 percent interest? If he had to wait until age 40 to receive the money, what is the present value today of the $20,000 to be received in 17 years? Click the following table icon to view the PVIF table: The present value, PV, of his trust today if the trust fund earns 5 percent interest is $ A LO a 863367 (Round to the nearest cent.)Peter is 65 years old and has just attended his retirement party. He has amassed $1.50 million in retirement savings. He and his spouse have figured out that during retirement, they need to withdraw $100,000 at the end of each year from their retirement savings to maintain the standard of living that they would like to have. If they can earn 5% interest on the unspent balance in their retirement account, how many years will it be before their retirement savings are exhausted? O O 3 30 28 32 24 26 44 % 5 MacBook Pro (0 √ 2⁰ 00 * 8On January 1, 1980, your favorite uncle John turned 43 and started saving for his retirement. He invested $18,894.75 each year on January 1 until he turned 62 on 1/1/1999 (20 total deposits). Over the 20 years, he managed to earn an effective annual rate of return of 9.50%, and he assumed he could continue to earn that rate of return until he turned 90. Looking at his account balance, he calculated that he could immediately withdraw $74,050.56 to cover living expenses for 1999. And, going forward, he could withdraw that same amount on January 1 of each year, but adjusted for a 3% inflation. That is, in 2000, he could withdraw $74,050.56 x 1.03 $76,272.08; in 2001, $74,050.56 x 1.032 $78,560.24; etc. He planned on a total of 28 withdrawals, with the last one of $164.487.70 on 1/1/2026 when he turned 89. At that point, the account balance would be zero. 501 On 1/1/2023, right after making his withdrawal for 2023, your uncle decided to become a Tibetan monk. He left you the balance of his…
- A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 6 percent on this savings. How much will she have accumulated if she retires at age 65? At retirement how much can she withdraw each year for 20 years from the accumulated savings if the savings continue to earn 6 percent?Your rich uncle just celebrated his 35^(th) birthday and wants to provide SHSU an endowment of one million per year (forever) starting his 45^(th) birthday (10 years from today). He plans to set aside that money by putting it into a special account that pays 10% starting on his 36^(th) birthday through his 44^(th) birthday. How much must he set aside each year?A rather wealthy man decides to arrange for his descendants to be well educated. He wants each child to have $65,000 for his or her education. He plans to set up a perpetual trust fund so that five children will receive this assistance in each generation. He estimates that generations will be spaced 25 years apart. He expects the trust to be able to obtain a 5% rate of return and the first recipients to receive the money 15 years hence. How much money should he now set aside in the trust?
- You just received a $3,000 gift from your grandmother. You have decided to save this money so that you can gift it to your grandchildren 50 years from now. How much additional money will you have to gift to your grandchildren if you can earn an average of 8.5 percent instead of just 8 percent on your savings?A 40-year-old woman decides to put funds into a retirement plan. She can save $3,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$ Appendix CDaniel Jackson is 30 years and wants to retire when he is 65. So far he has saved (1) $6,730 in an IRA account in which his money is earning 8.3 percent annually and (2) $5,590 in a money market account in which he is earning 5.25 percent annually. Daniel wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in which he expects to earn 9.83 percent annually. How much will Daniel have to invest every year to achieve his savings goal? (Round answer to 2 decimal places, e.g. 15.25.) Daniel will have to save $
- Your brother, who is 6 years old just received a trust fund that will be worth $25,000 when he is 21 years old. If the fund earns 0.11 interest compounded annually, what is the value of the fund today? Round to two decimal places.Your great - uncle Claude is 82 years old . Over the years , he has accumulated savings of $ 80,000 . He estimates that he will live another 10 years at the most and wants to spend his savings by then . ( If he lives longer than that , he figures you will be happy to take care of him . ) Uncle Claude places his $ 80,000 into an account earning 10 percent annually and sets it up in such a way that he will be making 10 equal annual withdrawals - the first one occurring one year from now — such that his account balance will be zero at the end of 10 years . How much will he be able to withdraw each year ? EBK CONTEMPORARY FINANCIAL MANAGEM chapter5, problem 14pYour great-uncle Claude is 82 years old. Over the years, he has accumulated savings of $80,000. He estimates that he will live another 10 years at the most and wants to spend his savings by then. (If he lives longer than that, he figures you will be happy to take care of him.) Uncle Claude places his $80,000 into an account earning 10 percent annually and sets it up in such a way that he will be making 10 equal annual withdrawals—the first one occurring one year from now—such that his account balance will be zero at the end of 10 years. How much will he be able to withdraw each year?