Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 12% basis that will enable him to withdraw $25,300 per year on June 30, beginning in 2029 and continuing through 2032. To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 2025–2028. What are each of Leon’s contributions to the fund? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Leon’s contributions to the fund $
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Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 12% basis that will enable him to withdraw $25,300 per year on June 30, beginning in 2029 and continuing through 2032. To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 2025–2028.
What are each of Leon’s contributions to the fund? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Leon’s contributions to the fund | $ |
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- Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $20,000 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund, Clarence intends to make equal contributions on June 30 of each of the years 2020–2023. Instructions a. How much must the balance of the fund equal on June 30, 2023, in order for Clarence to satisfy his objective? b. What are each of Clarence’s contributions to the fund?Steve, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 9% basis that will enable him to withdraw $67,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Steve intends to make equal contributions on June 30 of each of the years 2017–2020. How much must the balance of the fund equal on June 30, 2020, in order for Steve to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124, and final answer to 2 decimal places, e.g. 4,585.81.) Balance of the fund equal on June 30, 2020 $enter the balance of the fund equal on June 30, 2020 in dollarsSteve, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 9% basis that will enable him to withdraw $67,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Steve intends to make equal contributions on June 30 of each of the years 2017–2020. How much must the balance of the fund equal on June 30, 2020, in order for Steve to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124, and final answer to 2 decimal places, e.g. 4,585.81.) Balance of the fund equal on June 30, 2020 $enter the balance of the fund equal on June 30, 2020 in dollars check_circle Step 1 Steve will withdraw $67,000 per year for four years from June 2021 to 2024 Present value of an annuity of $67,000 per year discounted at 9% per year Value of fund as of June 30 2020 can be calculated using the following formula: Drawings per year x (1 –(1+r)-n/Rate) R= Rate per…
- Morgan Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $24,390 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund, Morgan intends to make equal contributions on June 30 of each of the years 2020-2023. (a) Click here to view factor tables How much must the balance of the fund equal on June 30, 2023, in order for Morgan to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Balance of the fund equal on June 30, 2023 $Steve Weatherspoon, a super salesman contemplating retirement on his ffty-ffth birthday, decides to create a fund on an 9% basis that will enable him to withdraw $ 16,000 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund. Steve intends to make equal contributions on June 30 of each of the years 2020-2023. What are Steve's contributions to the fund ?John, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 12% basis that will enable him to withdraw $60,000 per year on June 30, beginning in 2029 and continuing through 2033. To develop this fund, John intends to make equal contributions on June 30 of each of the years 2025 - 2028. How much must the balance of the fund equal on June 30, 2029, in order for John to satisfy his objective? Balance of the fund equal on June 30,2029: $__________
- (Computations for a Retirement Fund) Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $20,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Clarence intends to make equal contributions on June 30 of each of the years 2017–2020.Instructions(a) How much must the balance of the fund equal on June 30, 2020, in order for Clarence to satisfy his objective?(b) What are each of Clarence’s contributions to the fund?Ricky, an executive VP contemplating retirement on his sixty fifth birthday, decides to create a fund on a 6% basis that will enable him to withdraw $90,000 per year on July 31, beginning in 2025 and continuing through 2029. To develop this fund, Rich intends to make equal contributions on July 31 of each of the years 2020–2024.1. Compute how much the balance of the fund must equal on July 31, 2024, in order for Rich to satisfy his objective.2. Compute the amount of Rich’s contributions to the fundA professor wishes to provide a fund for his retirement such that from his 60th to 70th birthdays he will be able to withdraw equal sums of P18,000 for his yearly expenses. He invests equal amount for his 41st to 59th birthdays in a fund earning 10% compounded annually. How much should each of these amounts be?
- William North has just inherited $1,066,000 which he would like to use as part of his retirement nest egg. He invested the funds at a 7.41 percent annual rate compounded annually. William will reach age sixty in 6 years and will retire early. Now he would like to know how much he could withdraw from the fund in equal installments at the end of each year from the year he reaches age 60 until he reaches age 70½, the year he must start withdrawing funds from his individual retirement account (IRA). William assumes the funds will continue to earn at a 7.41 percent annual rate. In other words, William would like to know the annual year-end payment from an eleven-year annuity (from age 60 to the year he will be 70½), earning 7.41 percent annually. Round the answer to two decimal places.Mia will retire 10 years from now and wants to establish a fund today that will pay $48,000 cash at the end of each of the first five years after retirement. Specific dates are these: date of a single deposit by Mia, January 1, year 1; date of first cash payment from the fund to Mia, December 31, year 11. The fund will pay 10% compound interest. How much cash must Mia deposit on January 1, year 1, to provide the five equal annual year-end cash payments from the fund? $AnswerAdams Hitchcock is 37 years old today and he wishes to accumulate $531,000 by his 62 nd birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 37 th through his 61 th birthdays. What annual deposit must Adams make if the fund will earn 8% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, eg. 458,581.) $ Annual deposit %24