8. You aunt has just retired and has $3,000,000 in her retirement account. She expects to live for another thirty years (exactly) and wishes to leave $500,000 each to the Chicago Symphony Orchestra and to the Lyric Opera when she is gone. What is the most that she could withdraw from this account at the end of each quarter and still leave the money to the symphony and opera? The fund is expected to return six percent per annum, compounded monthly?
Q: My spouse and I are each 62 and hope to retire in three years. After retirement we will receive…
A:
Q: Jack is a very successful manager. He has a management contract which grants him a lump sum payment…
A: Future value of a present value is the value of that amount after taking into account the time value…
Q: you are planning for a very early retirement. you would like to retire at age 40 and have enough…
A: You need $235,000 each year for 40 years. Present value for $235,000 for 40 years at 10% can be…
Q: today
A: Formula to calculate FV of annuity: If payment done at the beginning of the year: FV =…
Q: Rase High School wants to set up a scholarship fund to provide five $3,000 scholarships for the next…
A: Hi, since you have posted multiple questions, I will answer the first one only, as per the…
Q: thday, you will make the first monthly contribution of $200 into the fund that will earn 6%/year…
A: In this we need to calculate the monthly future value factor and and find out retirement fund and…
Q: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15…
A: The future value of an annuity due is the future worth of a series of cash flows received at the…
Q: Mia plans to save $9,700 a year for the next 27 years to help her in retirement starting at the end…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Mr. Wilks is 30 years old today and wants to set aside an equal amount at the end of each of the…
A: Computation of present value at the age of 60 is as follows:
Q: wealthy man wants to provide annual scholarships to deserving students. The fund will grant P100,000…
A: The present value of money is required to get the amount of scholarship required and must according…
Q: 1. Abbigail wish to establish a trust fund from which her daughter can withdraw $6,000 every six…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Our clients saved $2,500,000 for retirement. They wish to withdraw $20,000 from the fund each month…
A: An annuity is a contract where periodic payments are made in the future in return for a lump-sum…
Q: How much more will you have in your RRSP 30 years from now if you start to contribute $1000 per year…
A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…
Q: Henry Bogut just received a signing bonus of $1,086,900. His plan is to invest this payment in a…
A: Present value and future value is a concept of time value of money. It is considered as an important…
Q: Baffin College has an endowment that pays one lucky student $7,500 a year forever, of course. It is…
A: Perpetuity refers to series of equalized payments that are either paid or received under specific…
Q: Your client has great news. His son was born last week. He wants to set aside $50,000 today to cover…
A: Future Value = Present Value ( 1 + i )n Note: Assuming that interest on his investment will be…
Q: A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 is…
A: Annuity due are those payments that are made at the beginning of the year and ordinary annuities are…
Q: Ms. Early Saver has decided to invest $1,000 at the end of each year for the next 10 years, then she…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: You are head of the Schwartz Family Endowment for the Arts. You have decided to fund an arts school…
A: Calculation of PV of the Gift:In order to calculate the present value of the gift, it is necessary…
Q: Jasica Parker would like to have $48,000 to buy a new car in 7 years. To accumulate $48,000 in 7…
A: The monthly invested payment can be calculated using PMT function in excel PMT(rate, nper, pv, [fv],…
Q: An annuity that pays out 30,000 a year for 20 years (paid at the beginning of each year) and b.…
A: In this question one needs to find the payment per month. But before doing that one needs to…
Q: Having achieved immense success since graduating from university, you have set up an endowment fund…
A: First annual contribution (X) = $100000 Constant rate of growth (d) = - 2% (Declining rate) Interest…
Q: 35. Upland Family Practice Center plans to invest $60,000 in a money market account at the beginning…
A: 3This question is based on annuity due concept where the cashflow stream starts at beginning of each…
Q: Mr. Cruz wishes his daughter to receive P1, 000, 000 ten years from now. What amount should he…
A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…
Q: Your company wants to create a scholarship program that will cost $17,000 dollars a year. They will…
A: To calculate the investment amount required today we will use the below formula Investment amount…
Q: Dear Financial Adviser, My spouse and I are each 62 and hope to retire in three years. After…
A: A financial advisor is an individual who provides guidance and assistance to their clients on…
Q: Baffin College has an endowment that pays one lucky student $7,500 a year forever, of course, It is…
A: The present value of a perpetuity is the present worth of a cash flow series which is to be received…
Q: ) Gabrielle needs $200,000 in eight years. She has set up a sinking fund that earns 5% compounded…
A: Future Value is $200,000 Time period is 8 years Interest rate compounded monthly is 5% To Find:…
Q: 25. Washington Memorial Hospital has just been informed that a private donor is willing to…
A: Using excel PV function
Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…
A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…
Q: You are head of the Schwartz Family Endowment for the Arts. You have decided to fund an arts school…
A: Present Value = PaymentEffective Interest Rate Effective Interest Rate = (1+i)t-1
Q: Your Aunt Ruth has $610,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Jackson Clinic is starting an endowment fund to pay for the expenses of a allied health training…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Your uncle has $298,000 invested at 7.7%, and he now wants to retire. He wants to withdraw $35,000…
A: using NPER function excel NPER is the no. of withdrawal
Q: You are planning for a very early retirement. You would like to retire at age 40 and have enough…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Your aunt has $550,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000…
A: Given: Particulars Amount Present value(PV) $550,000 Interest rate (Rate) 5.50% Payment…
Q: You want to create an endowment income of $35,000 per year for Oxfordshire Charity, bit the first…
A: The amount that should be invested today is the present value of all future endowment payments.…
Q: Mr. Crabapple wants to donate money now for an account that will allow a favored charity to make…
A: Annnuity at the end of each year from year 19 to 44 = $17,000 Time = 26 years Rate = 4.3% annually…
Q: 1. Mark started to deposit P18,000 semi-annually in a fund that pays 5% compounded semi-annually.…
A:
Q: John Jones has just retired after many years with the telephone company. His pension funds have a…
A: Annuity refers to series of equalized payments that are made at end or begin of period for constant…
Q: Al Darby wants to withdraw $21400 (including principal) from an investment fund at the end of each…
A: In the given case, an amount of $ 21,400 will be withdrawn at the end of each year for next 5 years.…
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…
A: Compounding interest rates are a concept of interest on interest where interest is reinvested rather…
What is the answer and how to do it ?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can withdraw $6,000 per month for the next 20 years. If the fund earns 5% per year compounded continuously, how much money does he need now to establish the fund? Exact value = Rounded to the nearest cent = dollars dollarsYou decided to fund a charity for ten years. The first payment will be made one year from today (at the end of year one) and will be $8,350. Each year after that, the charity will receive payment from you annually. The payment will increase at a rate of 2% per year after the second payment. If the annual interest rate is 15%, what is the present value of this endowment? no excel and calculations pleaseMr. Crabapple wants to donate money now for an account that will allow a favored charity to make $17,000 withdrawals at the end of each of years 19 to 44. How much should he contribute today if investment managers Dogwood Associates expect to earn returns averaging 4.3% per year on the charity's foundation account? (This is a 26-year deferred annuity, with $17,000 to be paid out at the end of each of years 19 to 44.) A. $128,584.54 B. $115,644.17 C $263,040.12 D. $123,283.36 E. $156,230.80
- You want to create an endowment income of $35,000 per year for Oxtordshire Charity, but the Tirst payment will not be made until the 4th year's time. a. If you can earn a return of 8% APR on your investment, and if the payment is made on a monthly basis, calculate how much to invest now? $5,133,086.81 B. $4,133,086.81 $5,233,086.81 $4,233,086.81 $5,250,000.81You’ve landed your first job after graduation. Although retirement may seem like a long way off, you wisely enroll in your company’s retirement programs. In addition to maximizing your company’s 401K match you also plan to contribute $7000 per year to a self-directed fund for 35 years. Starting one year after you make your final contribution to this fund, how much could you withdraw each year from this account forever without impacting the fund’s balance? Assume the fund earns 6% per year.A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals. Years until retirement: 30 Amount to withdraw each year: $120,000 Years to withdraw in retirement: 25 Interest rate: 7.5% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. Required: Now assume that the inflation rate is 3%. Consequently, when your friend retires she will want to withdraw $120,000 each year in today’s dollars. What amount is she planning to receive in year 31 (the end of her first year of retirement)? How much does she need to have in retirement at the end of year 30 in order to receive her retirement payments assuming that these retirement payments continue to increase at 3% per year throughout her retirement?…
- You plan to set up an endowment at your alma mater that will fund $180,000 of scholarships each year indefinitely. If the principal (the amount you donate) can be invested at 6.4 percent, compounded annually, how much do you need to donate to the university today, so that the first scholarships can be awarded beginning one year from now? (Round answer to 2 decimal places, e.g. 52.75.)Your aunt has $270,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end? a. 8.30 b. 7.98 c. 8.94 d. 8.06 e. 9.19You are head of the Schwartz Family Endowment for the Arts. You have decided to fund an arts school in the San Francisco Bay area in perpetuity. Every 3 years, you will give the school $800,000. The first payment will occur 3 years from today. If the interest rate is 7.7% per year, what is the present value of your gift? The PV of the gift is $ (Round to the nearest dollar.)
- Baffin College has an endowment that pays one lucky student $7,500 a year forever, of course, It is a different student each year. Long-term yields are 10 percent. (Use a Financial calculator to arrive at the answers.) a. How much is currently required to fund the encowment? Required fund %24 b. If the endowment will not commence until five years from today, how much is required? (Round the final answer to the nearest whole dollar.) Required fundYou decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period.Baffin College has an endowment that pays one lucky student $7,500 a year forever, of course, It is a different student each year. Long-term yields are 10 percent. a. How much is currently required to fund the endowment? Required fund b. If the endowment will not commence until five years from today, how much is required? Required fund