7. Carlos Primero is a 30-year old employee earning P400,000 per annum. He intends to retire at the age of 40 so that he can engage in his own business. However, he would want to earn a fixed income from a portfolio to maintain his current standard of living. Inflation rate is 4% and investments are expected to realize 8% per annum. How much must be the value of his portfolio at the age of 40? 8. Assuming that the value of Carlos Primero's portfolio at the age of 40 should be P6,000,000, how much should be his target savings goal? 9. Inasmuch as Carlos in No. 7 will be able to live on P150,000 per month upon retirement, what should be the rate of return on the portfolio if he can afford to contribute P100,000 per annum only?
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- Suppose that between the ages of 22 and 32, you contribute $8000 per year to a 401(k) and your employer contributes $4000 per year on your behalf. The interest rate is 7.67.6% compounded annually. (a) What is the value of the 401(k) after 10 years? (b) Suppose that after 10 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? (c) What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan?a. Suppose that between the ages of 22 and 30, you contribute $7000 per year to a 401(k) and your employer contributes $3500 per year on your behalf. The interest rate is 8.6% compounded annually. What is the value of the 401(k) after 8 years? b. Suppose that after 8 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? a. The value of the 401(k) after 8 years is $ (Do not round until the final answer. Then round to the nearest dollar as needed.)a. Suppose that between the ages of 22 and 30, you contribute $2000 per year to a 401(k) and your employer contributes $1000 per year on your behalf. The interest rate is 9.3% compounded annually. What is the value of the 401(k) after 8 years? b. Suppose that after 8 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the401(k). How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan?
- a. Suppose that between the ages of 22 and 36, you contribute $9000 per year to a 401(k) and your employer contributes $4500 per year on your behalf. The interest rate is 8.5% compounded annually. What is the value of the 401(k) after 14 years? b. Suppose that after 14 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? Click the icon to view some finance formulas. a. The value of the 401(k) after 14 years is $ (Do not round until the final answer. Then round to the nearest dollar as needed.)1. Assume that your father is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retires-that is, until age 85. He wants his first retirement payment to have the same purchasing power at the time he retires as GH¢ 40,000 has today. He wants all of his subsequent retirement payments to be equal to his first retirement payment. (Do not let the retirement payments grow with inflation: Your father realizes that the real value of his retirement income will decline year by year after he retires.) His retirement income will begin the day he retires, 10 years from today, and he will then receive 24 additional annual payments. Inflation is expected to be 5% per year from today forward. He currently has GH¢ 100,000 saved up; and he expects to earn a return on his savings of 8% per year with annual compounding. To the nearest dollar, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year,…Luis has $170,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to roll over his assets to a new account. Luis also plans to put $3500/quarter into the new account until his retirement 30 yr from now. If the account earns interest at the rate of 8%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Hint: Use the compound interest formula and the annuity formula. (Round your answer to the nearest cent.)
- 1. Your client is 40 years old; and she wants to begin saving for her retirement, with the firs payment to come one year from now. She can save Rs. 5000 per year and to invest it in the stock market., which expect to provide average return of 9% in the future. a) If she follows your advice, how much money she will have at the age of 65? b) How much she will have at the age of 70? c) She expects to live for 20 years if she retires at 65 and for 15 years if she retires at the age of 70. If her investment continues to earn the same rate of return, how much will she be able to withdraw at the end of each year after retirement at each retirement age? you advise herYour client, Tom, has come to you inquiring about retirement. He wants to know approximately how much (in future dollars) he will need to have saved by retirement. You have calculated that he will need about $182,365 a year to maintain his current life style. He expects to retire at age 64 and live to around 90, and his return on investment averages at 9%. Estimated average inflation is 3%. How much does Tom need to have on day 1 of retirement to meet this goal? O $1,987,422 O $2,127,937 O $2,662,389 O $2,552,815Suppose DAVID wants to have P10,000,000 to retire 45 years from now, how much would she have to invest with an annual rate of 15%?A. P17,844B. P18,561C. D.
- 762 Your client is 40 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year; and you advise her to invest it in the stock market, which you expect to provide an average return of 9% in the future. Required: a) If she follows your advice, how much money will she have at 65? b) How much will she have at 70? c) She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? d) ABC Company wishes to invest a sum of money today in an investment that grows at the rate 12% per year so that ABC may withdraw 10,000,000 at the end of every year for the next 10 years. How much must be invested? e) EBEYAYEE" Ltd. has a goal to have GH $50,000 saved by the time she turns sixty- five, which is forty years from now. Assuming she can make 6%…How long would it take for Nico to save an adequate amount for retirement if he deposits R40,000 per year into an account beginning one year from today that pays 12 percent per year if he wishes to have a total of R1,000,000 at retirement?ou decide to replace your income of $70,000 a year in retirement for 30 years. How much do you need in your retirement account the day you retire to make that happen, assuming a real interest rate of 3%?