1. If CPP and OAS will pay an income of $24,000 per year for your client, what lump sum would be required to replace CPP&OAS if the client is 65 and life expectancy is age 95? Assume 5% portfolio returns during retirement, 2.7% inflation, 25% average tax rate and 40% marginal tax rate. (calculator "begin' mode) (Single Choice)* 527,856 501,629 587,859 549,428

1. If CPP and OAS will pay an income of $24,000 per year for your client, what lump sum would be required to replace CPP&OAS if the client is 65 and life expectancy is age 95? Assume 5% portfolio returns during retirement, 2.7% inflation, 25% average tax rate and 40% marginal tax rate. (calculator "begin' mode) (Single Choice)* 527,856 501,629 587,859 549,428

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

You will be earning $1,200 in salary every month, if you decide to put half of that in your savings account that pays you 6% in interest, how much will you have saved up after 11 years? Select one: a.$290,860.98 b.$111,793.58 O c.$231,793.58 d.$463,587.15
Suppose you have $1,000,000 in savings account when you retire. Your plan is to withdraw $6,000 a month as retirement income from this account. You expect to earn annual interest of 5%, compounded monthly, on your money during your retirement. How many months can you be retired until you run out of money? A-210.83 B-262.59 C-220.27 D-285.14
Required information Problem 10.039 - Retirement account calculations In wisely planning for your retirement, you invest $35,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real retum of 10% per year when the inflation rate averages 3.4% per year. Problem 10.039.a Future dollars in retirement account How many future dollars will you have in the account immediately after your last deposit? You will have $ future dollars in your account immediately after your last deposit.
Please answer using life-cycle problem. Suppose the interest rate is 5%, the income tax rate 35%, the tax rate on investment income is 20%, and the investment horizon 40 years. (a) What is the final payoff after tax if $100 pre-tax income is invested in a regular savings account? (b) What is the final payoff after tax if $100 pre-tax income is invested in a retirement account? (c) What is the final payoff after tax if $100 pre-tax income is invested in a Roth account?
M10
5. Determine the lump-sum amount needed to generate a retirement income of $30,000 per year for 20 years, assuming interest at 5% per year, compounded annually. 6. A furniture retailer offers a payment plan at 8.8% annual interest, compounded monthly. Customers can pay for a living room set by monthly payments of $288.15 for 2 years. a) Determine the total payments made by the customer to pay off the living room cot ))
i need both solution....../.
Question 1Mr. and Mrs. Haddad have contributed $2025.00 per six months for the last eighteen years into RRSP accounts earning 6.92 % compounded semi - annually. a) How much will Mr. and Mrs. Haddad have in total in their RRSP accounts? b) How much did the Haddad's contribute? c) How much will be interest? PMT = $IY = CY = i = n = Total in RRSP account $Total Contibution =$ Interest =$ Blank 1: Blank 2: Blank 3: Blank 4: Blank 5: Blank 6: Blank 7: Blank 8:
Only typed answer and please don't use chatgpt A $4,100 balance in a tax-deferred savings plan will grow to $ 89,070.45 in 40 years at an 8% per year interest rate. What would be the future worth if the $ 4,100 had been subject to a 22% income tax rate?.
URE ic Gail Trevino expects to receive a $580,000 cash benefit when she retires seven years from today. Ms. Trevino's employer has offered an early retirement incentive by agreeing to pay her $310,000 today if she agrees to retire immediately. Ms. Trevino desires to earn a rate of return of 10 percent. (PV of $1& and PVA of $1) Note: Use appropriate factor(s) from the tables provided. raw Required a. Calculate the present value of the $580,000 future cash benefit. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer's offer? Note: Round your final answer to the nearest whole dollar value. Present value Should Ms. Trevino accept the offer?
Q40
To be sure that you understand how to use the tables in Appendix A at the end of this book, solve the following exercises. Ignore income tax considerations. The correct answers, rounded to the nearest dollar, appear on page 855. Q. You have just won $50,000. How much money will you accumulate at the end of 5 years if you invest it at 6% compounded annually? At 12%?

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