2 1 John wants to retire at the age of 65 years, he is 43 years old now and wants to retire with a savings of $5,000,000. Currently, the savings plan pays 8% interest rate. What is the annual savings that John needs to make each year till he retires to get savings worth $5,000,000? C
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- Juan plans on saving $8000 each year starting at age 25 each year through age 65 (40 years). If he earns a “gross” 8% on his savings each year, how much money will he have at retirement if his account expense ratio is: 0.50% =$???????????? or 0.05%= $?????????????B. John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account? Draw a timeline for this question and solve? Timeline is compulsory.14. You are saving for retirement. To live comfortably, you decide you will need to save $3 million by the time you are 65. Today is your 20th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 10%, how much must you set aside each year to make sure that you will have $3 million in the account on your 65th birthday?\The amount to deposit each year is $______(Round to the nearest dollar.)
- 5. Dan plans to retire in 25 years, when he is 65 years old. At that time, he would like to have saved $250 000 in his RRSP. a) Determine the monthly deposits he should make into his RRSP if the rate of interest earned is fixed at 5.5% per year, compounded monthly. b) Determine the amount of interest his investments earned.K You are saving for retirement. To live comfortably, you decide you will need to save $3 million by the time you are 65. Today is your 20th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 7%, how much must you set aside each year to make sure that you will have $3 million in the account on your 65th birthday? www The amount to deposit each year is $. (Round to the nearest dollar.)K You are saving for retirement. To live comfortably, you decide you will need to save $1 million by the time you are 65. Today is your 21st birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 9%, how much must you set aside each year to make sure that you will have $1 million in the account on your 65th birthday? The amount to deposit each year is $(Round to the nearest dollar)
- Peter has opened a retirement investment account and plan to contribute $6,000 at the end of each year to his account for 30 years. He wants to retire when he has $1 million in the account. What expected annual rate of return must earn to have $1 million in his account? 11.24% 8.93% 9.26% 12.18% 10.07%How much does Tim need to save each year for 9 years as a regular savings payment if he wants to retire in exactly 9 years with $1,078,000.00, can earn 13.05 percent on his savings, starts making regular savings payments in exactly 1 year, and saves an equal amount each year with one exception, which is that in 2 years, he plans to make an extra contribution of $30,000.00 to savings? (ROUND THE VALUE TO O DECIMAL AND ENTER THE POSITIVE VALUE) Correct Answer:65,198 show workings1. If you want to have $500,000 when you retire and you put $85,000 in your retirement account right now, and you can get an interest rate of 5.2% a year, how many years will it take you to achieve your goal? 2. Sammy decides to set up a retirement fund. He deposits $7,000 a year. He earns an annual interest rate of 4.5. How much will Sammy have in his retirement fund in 25 years? 3. Sammy wants to see what his retirement fund would be if he made $7,000 deposits at the first of every year instead of at the end. How much will Sammy have im his retirement fund in 25 years at the rate of 4.5% if the deposits are made at the beginning of the year? 4. Sammy wants to help a fellow small business owner. The other owner, Mr. Noles offers to pay Sammy $4,250 a year for 8 years in exchange for a loan of $28,000. If the interest rate is 4.2%, is this a good investment for Sammy? What is the present value of this annuity?
- Ryan is 30 years old and wants to save $2 million for retirement in 30 years. Assume he invests in a savings account that earns at least the current rate of inflation (7.2%). Determine how much money Ryan must save based on the number of years that he waits to start saving to reach his retirement goal. Years of Waiting to Save Principal Required 0 10 20 30 $2,000,000John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account? Draw a timeline for this question and solve? Timeline is compulsory.16. You are 20 years old now, and planning to put $5,000 into an investment account which is expected to grow 9% annually. As you want to catch up with your wealthy neighbor, you are going to put $2,000 each year to that investment account till your planned retirement. How much can you have in that investment account when you retire at 60 years old.
