ames deposited $5,000 into a traditional IRA this year. He expects his account will earn an average annual rate of 9%, and e plans to withdraw the money in 33 years. His current income tax rate is 28%, but he anticipates that his income tax rate vill be 25% when he withdraws the money. How much will James save in income taxes this year? Group of answer choices
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- C. Fred is planning on retiring this year. How much must his retirement account have in it this year in order to make a $40,000 payment each year for the next 30 years to meet his needs assuming that the appropriate interest rate is 8%?*A client needs assistance with retirement planning. Here are the facts: The client, Dave, is 21 years old. He wants to retire at 65. Dave has disposable income of $2,000 per month. The IRA Dave has chosen has an average annual return of 8%. Question 1. If Dave contributes half of his disposable income to the account, what will it be worth at 65? Question 2. How much would he need to contribute to have $5,000,000 at 65?Parker is doing some retirement planning. He would like to have a retirement income of $3,000 at the beginning of each month during his retirement. He expects his retirement to last for 20 years and that his fund will earn j12-3.6% during retirement. a) How much money must Parker have in his account on the day he retires in order to fund his retirement? b) How much must Parker deposit at the end of each month into his retirement fund from now until retirement in order to have enough to fund his retirement goal? Assume that he already has $30,000 in his account and that he will retire in 30 years
- Madison is planning to save for his newborn daughter’s college tuition, to be paid in 18 years. The amount he wishes to have by that time is $70,000. He plans to deposit $2,300 in a bank account every year for 18 years, starting next year. Suppose the account pays 2% interest on deposits, compounded annually. How much would he need to deposit right now, to make up the remaining amount necessary by the end of 18 years? a. $13,378.03 b. $14,529.48 c. $15,841.33 d. $17,003.96 e. $18,458.72.John wants to have the financial ability to withdraw $80,000 per year forever beginning 30 years from now. If his retirement account earns 8% per year interest and dividends, what is the required balance in (a) year 29, and (b) year 0?Lisa plans to retire on her 61st birthday. On her 22nd birthday, Lisa will start saving $A per year for 40 years. Starting on her 62nd birthday, Lisa plans onwithdrawing $10,000 and will continue these annual withdrawals until the account is exhausted on her 85th birthday. If Lisa’s bank account pays 3% per year, what annual amount of $A will Lisa need to invest in her bank account to achieve her retirement goal?
- Jim wants to deposit an amount anually to meet his retirement needs. Assume that he will deposit a fixed annual amount for the next 20 years into a retirement savings account, starting one year from now. Mark has a son who will be attending college and plans to make 5 withdrawals (starting one year after making his final deposit into the retirement account) of $35,000 each to pay for his annual tuition for the following 5 years. Commercial Banks will be paying 6 percent on such retirement accounts for the next 25 years. How much should Mark place in the account annually to cover his retirement needs.Linus would like to start saving for his retirement. Starting April 1, 1950, he will make annual deposits into an account, with the last deposit coming on April 1, 1990. Linus assumes he will get pay raises, and plans to increase his deposits by 3.1 percent each year. If he would like to be able to withdraw 44000 dollars per year forever, with the first withdrawal on April 1, 1993, how much will Linus's first deposit need to be? (Assume an interest rate of 4.1 percent effective throughout.)Ophria invested well and plans to retire now because she has $2,300,000 in hre tax-deferred IRA account. How long will she be able to withdraw $125,000 per year (beginning one year from now) if her investments earn at a rate of 4% per year? solve using factors and NPER functions.
- Jennifer is planning her retirement. She currently has $6,783 in an IRA account that will return 8% per annum as long as she keeps the money on deposit. She will save $2,000 at the end of each year for the next 32 years until she retires in an account that she expects will earn 7% per annum. How much will she have when she retires?You are considering the tax consequences of investing $2,000 at the end of each year for 30 years in a tax-sheltered retirement account that will earn 9 percent annually. How much will you accumulate over 30 years if the growth in the investment remains sheltered from taxes? Round to the nearest cent. DO NOT INCLUDE COMMAS OR $. Type your response SubmitCharles wants to retire in 18 years. At that time he wants to be able to withdraw $22,000 at the end of each year for 18 years. Assume that money can be deposited at 6% per year compounded annually. What exact amount will Charles need to deposit today to have enough to cover his retirement? Show the use of the appropriate formula by indicating the use of the information into the formula.