A couple will retire in 50 years; they plan to spend about $26,000 a year (in current dollars) in retirement, which should last about 25 years. They believe that they can earn a real interest rate of 9% on retirement savings. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $56,000 on their child’s college education?

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 15.25%. How much would it cost him to buy the annuity today? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices

Suppose you are 30 years old and would like to retire at age 65. Furthermore, you would like to have a retirement fund from which you can draw an income of $100,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that the compounding and payment periods are the same. To draw $100,000 per year, there must be $☐ in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.)

1) Today is your 30th birthday and you must choose between two retirement options. The first option will provide you with 10 equal annual payments of $100, 000 beginning on your 65th birthday. The second option will provide you with one payment of $1, 000, 000 on your 70th birthday. If the interest rate is 6 percent per year and you are assured of living to at least 80 years of age, which option is better? 2) A retirement home in Florida costs $200, 000 today. Housing prices in Florida are increasing at a rate of 4% per year. Joe wants to buy the home in 8 years when he retires. Joe has $25, 000 right now in a savings account paying 8% interest per year. Joe wants to make eight equal annual deposits into the savings account starting today. How much must each deposit be so Joe will have enough money in his savings account to buy the retirement home when he retires?

Linda expects to receive P35,569.22 , 9 years from now. How much should she invests for three consecutive years (annually) starting THIS YEAR if the interest rate is 0.250? Use knowledge about ANNUITIES in solving this

You are saving for retirement. To live comfortably, you decide you will need to save $3,000,000 by the time you are 65. Today is your 30th 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 6%, how much must you set aside each year to make sure that you will have $3,000,000 in the account on your 65th birthday? The amount to deposit each year is $ (Round to the nearest cent.)

You plan to retire in 30 years and plan on saving $15,000 annually,starting next year, for the next 30 years. You expect to need $120,000about 18 years from now for college tuition for your recently borndaughter which must be paid out of these savings. You expect to live 35years during retirement (the first retirement payment will be 31 yearsfrom today)   If interest rate is 5%, but you want to keep the same retirement quality of life as if the interest rate is 8.15%. How much extra money do you need to save annually?

Your parents will retire in 26 years. They currently have $230,000 saved, and they think they will need $1,250,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of income a year for 25 years, with the first payment coming immediately.  The going rate on such annuities is 5.25%.  How much would it cost him to buy the annuity today?

Suppose that Paolo is 45 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $12,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 8.00% return. Assume that this rate will be constant for the rest of his's life. Paolo would like to calculate how much money he will have at age 65. Using a financial calculator yields a future value of this ordinary annuity to be approximately Paolo would now like to calculate how much money he will have at age 70. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 65. Paolo expects to live for another 25 years if he retires at age 65, with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Paolo can withdraw retirement at age 65), assuming a fixed withdrawal each year and $0…