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- Akbari and her twin sister, Asghari, are celebrating their 30th birthday today. Akbari has been saving for her retirement ever since their 20th birthday. On their 20th birthday, she made a $7,000 contribution to her retirement account. Every year thereafter on their birthday, she has added another $7,000 to the account. Her plan is to continue contributing $7,000 every year on their birthday. Her 46th and final, $7,000 contribution will occur on their 65th birthday. So far, Asghari has not saved anything for her retirement but she wants to begin today. Asghari’s plan is to also contribute a fixed amount every year. Her first contribution will occur today, and her 36th, and final, contribution will occur on their 65th birthday. Assume that both investment accounts earn an annual return of 10 percent. How large does Asghari’s annual contribution have to be for her to have the same amount in her account at age 65, as Akbari will have in her account at age 65?Akbari and her twin sister, Asghari, are celebrating their 30th birthday today. Akbari has been saving for her retirement ever since their 20th On their 20th birthday, she made a $7,000 contribution to her retirement account. Every year thereafter on their birthday, she has added another $7,000 to the account. Her plan is to continue contributing $7,000 every year on their birthday. Her 46th and final, $7,000 contribution will occur on their 65th birthday. So far, Asghari has not saved anything for her retirement but she wants to begin today. Asghari’s plan is to also contribute a fixed amount every year. Her first contribution will occur today, and her 36th, and final, contribution will occur on their 65th birthday. Assume that both investment accounts earn an annual return of 10 percent. How large does Asghari’s annual contribution have to be for her to have the same amount in her account at age 65, as Akbari will have in her account at age 65? Tariq Ahmed is 25 years old and is…Sam started working for the LED company on his 25th Birthday. Each month P30 was withheld from his salary and matched by an equal contribution from his employer, to be kept into a retirement fund. At the end of each year the contributions for the year were invested in a trust fund where it earned 8% interest compounded annually. Pedro retired on his 60th birthday and elected to receive an annuity of 20 annual payments, the first to be received immediately. What was the amount of each payment? DRAW THE CASH FLOW DIAGRAM. Use 4 decimal places in between process and 2 decimal for the final answer kindly substitute the values on the formula you're going to use. Thankyouu
- Grandma Thea turned 75 years old today. It's been five years since grandpa Anton passed away. They enjoyed 52 years of marriage together. Grandma Ethel took the money she was left Grandpas estate and invested it in a 2.5 million certificate of deposit (CD). The CD comes due next week. She can renew it for one year at 8 percent interest. She intends to use the income from the cd plus her monthly social security check to meet her living expenses.At her recent annual physical exam, the doctor announced that Grandma Thea was in excellent condition for her age. It would surprise no one if Grandma Thea continued to live well into her eighties. One of the guests at her 75th party was her 20-year-old nephew, Angel legarde. Angel fancies herself an expert in investments and has suggested to Grandma Thea that she can get a 1 percent higher yield by investing the 2.5 million in 30-years bonds. Please answer the following question:1. Comment on whether there is business risk or market risk…Lisa, age 45, needed some cash so she withdrew $50,000 from her Roth IRA. At the time the distribution, the balance in the Roth IRA was $200.000Lisa established the Roth IRA eight years ago. Through a conversion and annual contributions, she has contributed $20,000 to er account. What amount of the distribution is taxable and subject to early distribution penalty?Luoxana contributed $5,000.00 every year into an RRSP for 18 years. "What nominal annual rate of interest will the RRSP earn if the balance in Luoxana's account just after she made her last contribution was $195,000.00?
- Carrie, age 55, is an employee of Rocket, Inc. (Rocket). Rocket sponsors a SEP IRA and would like to contribute the maximum amount to Carrie’s account for the plan year. If Carrie earns $14,000 per year from Rocket, what is the maximum contribution Rocket can make on her behalf to the SEP IRA? a. $3,500. b. $14,000. c. $19,500. d. $57,000.Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $42,000 to her employer’s qualified pension fund. She elects to receive her retirement benefits as an annuity of $3,000 per month for the remainder of her life.a. Assume that Pam retired in June 2018 and collected six annuity payments that year. What is her gross income from the annuity payments in the first year?b. Assume that Pam lives 25 years after retiring. What is her gross income from the annuity payments in the twenty-fourth year?c. Assume that Pam dies after collecting 160 payments. She collected eight payments in the year of her death. What are Pam’s gross income and deductions from the annuity contract in the year of her death?Juan Reyes inherited P280,000 on his 30th birthday. This he placed in his own pension fund (bank account) which earns interest at a rate of 12% compounded annually. He withdrew P450,000 on his 35th birthday to make the initial payment on a house. He withdrew his annual uniform payment for the pension fund on his 65th birthday and planned to make 20 such withdrawals so as to just exhaust the fund. He died at the age of 71, however just before withdrawing the amount due on that date. How much is left in the fund to be passed on the heirs at the time of Juan’s death?
- Marleen, who is 37 years old, is an employee of Zcrypt, Inc. (Zcrypt). Zcrypt sponsors a SEP IRA and would like to contribute the maximum amount to Marleen’s account for the plan year. If Marleen earns $32,000 per year, what is the maximum contribution Zcrypt can make on her behalf to the SEP IRA? $8,000 $19,000 $32,000 $56,000 Explanation:Rachel is 20 years old. She plans on retiring in 40 years when she will be 60 years old. Rachel believes she will live until she is 105. In order to live comfortably, she needs a substantial retirement income. She wants to receive a weekly income of $5,000 during retirement. The payments will be made at the beginning of each week during her retirement. Also, Rachel has pledged to make an annual donation to her favorite charity during her retirement. There will be a total of 45 payments. The payments will be made at the end of each year. The first annual payment will be for $20,000. Rachel wants the annual payments to increase by 3% per year. The payments will end when she dies. In addition, she would like to establish a scholarship at Toronto Metropolitan University. The first payment from scholarship would be $50,000. The first scholarship payment would be made 7 years after she retires. Thereafter scholarship payments will be made every year. She wants the payments to continue after…Today is Hanan 23rd birthday. Starting today, Hanan plans to begin saving for her retirement. Her plan is to contribute $1,000 to a brokerage account each year on her birthday. Her first contribution will take place today. Her 42nd and final contribution will take place on her 64th birthday. Her aunt has decided to help Hanan with her savings, which is why she gave her $10,000 today as a birthday present to help get her account started. Assume that the account has an expected annual return of 10 percent. How much will Hanan expect to have in her account on her 65th birthday?