How much will she have at 70? he expects to live for 20 years if she retires at 65 and for 15 years if she retire Ther investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? ABC Company wishes to invest a sum of money today in an investment that p me rate 12% per year so that ABC may withdraw 10,000,000 at the end of e ear for the next 10 years. How much must be invested? BEYAYEE" Ltd. has a goal to have GH $50,000 saved by the time she turns ve, which is forty years from now. Assuming she can make 6% on her mone the value of that money now?

How much will she have at 70? he expects to live for 20 years if she retires at 65 and for 15 years if she retire Ther investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? ABC Company wishes to invest a sum of money today in an investment that p me rate 12% per year so that ABC may withdraw 10,000,000 at the end of e ear for the next 10 years. How much must be invested? BEYAYEE" Ltd. has a goal to have GH $50,000 saved by the time she turns ve, which is forty years from now. Assuming she can make 6% on her mone the value of that money now?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Your client is 45 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $6,000 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 11 percent. If she follows your advice, how much money would she have at age 65? a. $133,200.00 b. $967,477.38 c. $48,373.87 d. $427,590.86 e. $385,216.99
1. Your client is 40 years old; and she wants to begin saving for her retirement, with the firs payment to come one year from now. She can save Rs. 5000 per year and to invest it in the stock market., which expect to provide average return of 9% in the future. a) If she follows your advice, how much money she will have at the age of 65? b) How much she will have at the age of 70? c) She expects to live for 20 years if she retires at 65 and for 15 years if she retires at the age of 70. If her investment continues to earn the same rate of return, how much will she be able to withdraw at the end of each year after retirement at each retirement age? you advise her
Your client is 32 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $7,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 11% in the future. a. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. 24 b. How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent. C. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ Annual withdrawals if she retires at 70: $
Your client is 26 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 10% in the future. A. If she follows your advice, how much money will she have at 65? B. How much will she have at 70?
Your client is 25 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $1,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. A. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. B. How much will she have at 70? Round your answer to the nearest cent. C. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Round your answers to the nearest cent. Annual withdrawals if she retires at 65: Annual withdrawals if she retires at 70:
Your client is 31 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $1,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. $ How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent. $ She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ Annual withdrawals if she retires at 70: $
Your client is 40 years old; and she wants to begin saving for her retirement, with the firs payment to come one year from now. She can save Rs. 5000 per year and you advise her to invest it in the stock market., which expect to provide average return of 9% in the future.a) If she follows your advice, how much money she will have at the age of 65?b) How much she will have at the age of 70?c) She expects to live for 20 years if she retires at 65 and for 15 years if she retires at the age of 70. If her investment continues to earn the same rate of return, how much will she be able to withdraw at the end of each year after retirement at each retirement age?
Please show working. Please answer a, b, and c Your client is 35 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $7,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. $ _________ b. How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent. $ ________ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ ____________ Annual…
Your client, Tom, has come to you inquiring about retirement. He wants to know approximately how much (in future dollars) he will need to have saved by retirement. You have calculated that he will need about $182,365 a year to maintain his current life style. He expects to retire at age 64 and live to around 90, and his return on investment averages at 9%. Estimated average inflation is 3%. How much does Tom need to have on day 1 of retirement to meet this goal? O $1,987,422 O $2,127,937 O $2,662,389 O $2,552,815
You just had your 30th birthday and you are planning for your retirement at age 66. You currently have $20,000 in your investment portfolio, and you estimate that you will need at least $1.5 million in order to retire comfortably when you turn 66. What rate of return must be earned on your investment portfolio (assuming that you do not add any more money into the account) for your retirement plan to work? Show me all the calculation process
You are trying to decide how much to save for retirement. Assume you plan to save $4,500 per year with the first investment made one year from now. You think you can earn 6.0% per year on your investments and you plan to retire in 45 years, immediately after making your last $4,500 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 16 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 16th withdrawal (assume your savings will continue to earn 6.0% in retirement)? d. If, instead, you decide to withdraw $191,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…
Assume Sheryl Jenkins wants to accumulate $ 12,485.35 in two years. She currently has $ 10,809.59 to invest. What interest rate must she earn on her investment (that is, if she deposits $ 10,809.59 today) to have $ 12,485.35 exactly two years from today?

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