2 Derek plans to retire on his 65th birthday.However, he plans to work part-time until heturns 75. During these years of part-timework, he will neither make deposits to nortake withdrawals from his retirement account.Exactly one year after the day he turns 75when he fully retires, he will begin to makeannual withdrawals of $108,492 from hisretirement account until he turns 88. He hewill make contributions to his retirementaccount from his 26th birthday to his 65thbirthday. To reach his goal, what must thecontributions be? Assume a 7% interest rate.(Please explain this on a Microsoft excelspreadsheet step-by-step and the formulayou are using. I need help desperately. Thankyou)

Given information : Age of retirement = 65 Part time work age = 75 Withdrawals age = 88 Contribution…

Answered: Derek plans to retire on his 65th…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 41P

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Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 75.0 when he fully retires, he will wants to have $3,392, 232.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65 th birthday. To reach his goal, what must the contributions be? Assume a 8.00% interest rate. Answer format: Currency: Round to: 2 decimal places.
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Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 71.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 71.0 when he fully retires, he will wants to have $2,749,902.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 4.00% interest rate. Derek will deposit $2,596.00 per year into an account starting today and ending in year 9.00. The account that earns 15.00%. How much will be in the account 9.0 years from today?
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 75.0 when he fully retires, he will begin to make annual withdrawals of $105,330.00 from his retirement account until he turns 92.00. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 5.00% interest rate. (ROUND TO 2 DECIMAL PLACES.)
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Chase starts an IRA (Individual Retirement Account) at the age of 30 to save for retirement. He deposits $400 each month. Upon retirement at the age of 65 , his retirement savings is $558,638.87 . Determine the amount of money Chase deposited over the length of the investment and how much he made in interest upon retirement.

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