Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year after they retire in order to live comfortably. They plan to retire 10 years from now and expect to enjoy 20-year of happy retirement before they go to the great beyond. How much should they deposit now in a bank account paying 9 percent to reach financial happiness during retirement?
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Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year after they retire in order to live comfortably. They plan to retire 10 years from now and expect to enjoy 20-year of happy retirement before they go to the great beyond. How much should they deposit now in a bank account paying 9 percent to reach financial happiness during retirement?
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- A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which should last about 25 years. They believe that they can earn 9% interest on retirement savings. 1) If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. b) How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $62 000 on their child’s college education?Your best friend Mary is in discussion with you about saving for her retirement. You are to advise her on how much she should deposit annually to meet her retirement needs. Assume that she will deposit a fixed annual amount for the next 20 years into a retirement savings account, starting one year from now. Mary has a daughter who will be attending college and plans to make 5 withdrawals (starting one year after making her final deposit into the retirement account) of $35,000 each to pay for her annual tuition for the following 5 years. Commercial Banks will be paying 6 percent on such retirement accounts for the next 25 years. Kindly advise Mary on how much she should place in the account annually to cover her retirement needs.A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which should last about 25 years. They believe that they can earn 9% interest on retirement savings. a) If they make annual payments into a savings plan, how much will they need to save each year?Assume the first payment comes in 1 year. b) How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $62,000 on their child’s college education? Show workings and calculation with scientific calculater
- A couple will retire in 50 years; they plan to spend about $26,000 a year (in current dollars) in retirement, which should last about 25 years. They believe that they can earn a real interest rate of 9% on retirement savings. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $56,000 on their child’s college education?A couple just got married and they are both 25 years of age. They each plan to retire in 40 years at the age of 65. They want to be able to receive $200,000 at the end of each year for 20 years, upon retirement(so their first retirement payment will be at 41)Currently they have a total of $2,000 in cash savings. How much must they save at the end of each year for the next 40 years so as to have enough money to achieve their current goal? Assume the interest rate is 8% and will remain the same. Also assume that they start saving at the end of the first year.Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $130,000 from her savings account on each birthday for 24 years following her retirement, the first withdrawal will be on her 66th birthday. Your friend intends to invest her money at 10.7% interest per year. How much money must she accumulate by the time she retires in order to make these withdrawals? (Round your answer to the nearest dollar)
- Over the years, Ahmed and Aamina El-zayaty, of Berkeley, CA,desire an annual retirement income of $200,000 in their employer-sponsored retirement plans. Given that their parents all lived to be in their 90s, they each expect to live for 30 years past retirement. If the couple could earn 3 percent after-tax and after-inflation rate of return on their investments, what amount of accumulated savings and investments would they need?A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which should last about 25 years. They believe that they can earn 10 percent interest on retirement savings. If they make annual payments into a savings plan, how much will they need to save each year? Assume, the first payment comes in at the beginning of the year. How would the answer to part (a) change if the couple also realize that in 20 years, they will need to spend $ 60,000 on their child’s college education?Ms. Ieda Silva plans to retire in 28 years and expects to live for 25 years after retirement. She is preparing a savings plan to meet the following objectives. First, after retirement she would like to be able to withdraw $20,000 per month. The first withdrawal will occur at the end of the first month after retirement. Second, she would like to leave her son an inheritance of $500,000 when she passes on. Finally, she would like to set up a fund that will pay $15,000 per month forever to her favorite charity after she passes on. These payments to the charity will start one month after she passes on. All monies can earn 10 percent annual rate compounded monthly. How much will she have to save per month to meet these objectives? She wishes to make the first deposit a month from now and the last deposit on the day she retires. A.$983.24 B.$1,105.11 C.$1,550.51 D.$1,202.17 E.$603.38 F.$430.71 G.$1,014.02 H.$1,306.52
- Your best friend Sam is in discussion with you about saving for his retirement. You are to advise him on how much he should deposit annually 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. Sam 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 $35,500 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. Kindly advise Sam on how much he should place in the account annually to cover his retirement needs. (Answer rounded to 2 decimal dollar)A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which should last about 25 years. They believe that they can earn 8 percent interest on retirement savings. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. How would the answer to part (a) change if the couple also realizes that in 20 years, they will need to spend $60,000 on their child’s college education?A couple just got married and they are both 25 years of age. They each plan to retire in 40 years at the age of 65. They want to be able to receive $200,000 at the end of each year for 20 years, upon retirement. Currently they have a total of $2,000 in cash savings. In addition they expect to receive a total of $100,000 as a retirement bonus at the end of 40 years from their employer. How much must they save at the end of each year for the next 40 years so as to have enough money to achieve their retirement goal? Assume the interest rate is 8% and will remain the same.Using all the answers to the previous questions, what is the present value today of the amount that they need to save up to reach their retirement objective?