Amina needs$________ in her account when she retires. How much total money will Amina pull out of her account? In total, Amina will pull out $________ from her account.  How much of that money is interest? The amount of money that is interest is$________ .

Q: Monica has decided that she wants to build enough retirement wealth that, if invested at 9 percent…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: At age 18, Susan did nothing. She waited until she was 28 to start depositing $2000 per year at the…

A: Annuity, A = $ 2,000Interest rate, r = 12%Number of annuities = n = 65 - 28 = 37

Q: Your grandmother bought an annuity from Manulife Financial for $306,248 when she retired. In…

A: Step 1:Step 2:

Q: How much money will there be in the account?

A: solution A= R(1+i)n+1/i R= Contribution half year=$425 n= number of periods=48 years - 33 years =15…

Q: Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6…

A: Since Gabriela wants to withdraw a specific amount after a certain period of time, thus, it is…

Q: Helen can earn 3% interest in her savings account. Her daughter Roberta is 11 years old today.…

A: The future value of deposit is the value of the current deposits on a future date based on the…

Q: Jennifer is planning her retirement. She currently has $6,783 in an IRA account that will return 8%…

A: Deposit = $6783Return = 8%Yearly savings = $2000Return = 7%Years until retirement =32To find: the…

Q: Carolyn is helping to save for her granddaughter’s college fund. It will probably take 18 years…

A: Future value required (FV) = $150,000 Interest rate (r) = 6% Number of annual payments (n) = 18…

Q: Today, Tiffany is starting to save up for a downpayment on a house. Currently she has $635 in an…

A: Down payment refers to the initial sum that is extended towards the purchase of something for which…

Q: Marilyn wishes to retire at age 65 with $2,000,000 in the bank. At the age 21, she decides to begin…

A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

Q: Jamie wants to have $1,000,000 for her retirement in 25 years. How much should she save annually if…

A: Annuity refers to annual end of year deposits required to accumulate a certain sum of money in the…

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

Q: Alice needs P 4,000 per year for four years to go to college. Her father invested P 5,000 in 7%…

A: Future value of an amount is calculated as: = Amount * (1+rate)^number of periods

Q: Jules deposits $70 each month into a 401(k) savings account paying 3.59% annually, and her employer…

A: We know the quantum of funds invested into an account and the accumulated value. We have to find the…

Q: fter retiring, Sofía wants to be able to withdraw $8,500.00 every quarter from her account for 33…

A: There is need of proper planning for retirement and if you do that properly than you can achieve…

Q: expects to retire in 30 years. She has decided that she would like to retire with enough money in…

A: The present value of money to be received in the future would give the amount of retirement money…

Q: 10. At age 24, Brandie decides to put $150 a month into an account that has a 6% APR until she…

A: Future value refers to the value of the current asset at some future date affected by the rate of…

Q: Destiny invests $20,000 today into a retirement account. She expects to earn 7 percent, compounded…

A: The FV of an investment refers to the value of the cash flows of the investment at a future date…

Q: 1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year…

A: Annual saving (P) = $8000 Period from 35th year to 65th year (n) = 30 Interest rate (r) = 7.00%

Q: b. Jamie wants to have $2,000,000 for her retirement in 25 years. How much should she save annually…

A: An annuity is a set of equal payments made at a set rate over a predetermined amount of time.…

Q: Sherry has a goal of retiring with $375,394 by making weekly deposits into an investment account…

A: Present value =Future amount/(1+r)n n=29 years  r=rate of interest =1.4%

Q: After retiring, Gabriella wants to be able to withdraw $7,000.00 every quarter from her account for…

A: Future Value: It is  the worth of a resource at a particular date.  It estimates the ostensible…

Q: Michelle is 25 years old and has decided to start a retirement program. Beginning in exactly one…

A: Time period is 30 years Annual savings are $15,000  Interest rate is 4% To Find: Amount saved for…

Q: no retirement savings, and her investments will earn 6% annually. How much must she deposit into her…

A: The time value of money highlights the idea that money invested now will have a higher value than…

Q: Sally is 25 years old and has decided to start a retirement program. Beginning in exactly one year,…

A: We need to use future value of ordinary annuity formula to calculate total saving value at the time…

Q: After retiring, Rosetta wants to be able to withdraw $4,000.00 every month from her account for 26…

A: Amount to withdraw per month "PMT" is $4,000 Time period is 26 years Interest rate is 6% Compounded…

Q: Currently, Ally Gator has saved $15,000 in her retirement account. Ally plans on saving $6000…

A: Initial amount = $ 15000Annual deposit = $ 6000Number of years = 35Rate during working years=…

Q: Joanna is making a financial plan for her retirement. Today is her 35th birthday, and she receives…

A: Present Value(PV) is value of amount of series of amount that is paid or received at future date. It…

Q: Maria, a 25-year-old teacher, wants to start saving for her retirement. Maria wants a comfortable…

A: GIVEN, Age of Maria = 25  retirement age = 65 therefore number of years of savings = 65- 25 = 40…

Q: Sarah wants to save $20,000 to use for a down payment on a home. She deposits some money into a…

A: Individuals can save for expenditure by investing in financial instruments in which money grows at a…

Q: Ms. Ieda Silva plans to retire in 28 years and expects to live for 25 years after retirement. She is…

A: we can use discounting techniques to value the monthly deposits.

Q: Rachel starts an IRA (Individual Retirement Account) at the age of 26 to save for retirement. She…

A: Compound interest is a financial concept that involves the addition of interest not just on the…

Q: This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving…

A: The annuity formula can be used to calculate present value of all withdrawals at the time of…

Q: A couple is saving for retirement with three different accounts. The table below shows the current…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment. It is…

Q: Boatright wants to withdraw $2000 from an account at the end of year 1, $4000 at the end of year 2,…

A: Today value required in account is the present value of the future payments based on the time and…

Q: ang Daiyu expects to retire in 30 years. She has decided that she would like to retire with enough…

A:

Q: As soon as she graduated from college, Kay began planning for her retirement. Her plans were to…

A: Retirement fund refers to the portion of the income which is saved by an individual for the purpose…

Q: Lourdes has just retired and plans to consume $8,640 from the retirement account every year for the…

A: Annual consumption (A) = $8640 n = 16 years r = 9.6% We need to find the present value of these…

Q: How much does Jeanette need in her account when she retires?

A: Present Value: It is computed by discounting the future annuity cash payments by an appropriate…

Q: Johnny wants to save some money for his daughter Alexis's education. Tuition costs $12,500 per year…

A: The time value of money is a concept in finance that takes into account the effect of compounding to…

Q: Katy has decided she wants to put money aside for a $8000 downpayment on a house. She figures she…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Ali has decided to take a trip back home to California in 1 ½ years, but she needs to save up some…

A: Using excel FV function

Q: Emily is trying to decide between investing $1,000 or $1,500 at the beginning of each year for the…

A: Future value of money is the amount of deposit done and the amount of compounded interest…

Q: our friend has just celebrated her 30th birthday and accepted her first job. She must now decide how…

A: Your friend is undertaking her retirement planning. She has crystallized the annuity required in her…

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.