Problem 7-03 A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$

Problem 7-03 A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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How much money does Suzie need to have in her retirement savings account today if she wishes to withdraw $25 000 at the end of each year for 30 years? She expects to earn an average rate of return of 6%. $324 642.24 $331 288.67 $333 333.33 $344 120.78
Problem Outline Part A By the end of this year, you will be 35-years old, and you want to plan for your retirement. You wish to retire at the age of 65, and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened your retirement account with a 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate throughout your retirement years. What is the face value, not the actual value, of the bond that you will be investing in? Calculate the monthly payment in your retirement account to be able to achieve the plan mentioned above. How much will your inheritors receive? Problem Outline Part B Suppose you think if you were to retire right now, you would have needed $50,000 each year to supplement your social security and maintain your desired…
What does Shelley need to save monthly to make sure she is on track to reach her retirement goal of having $440,000 saved by the time she reaches age 65? She is 48 years old, has been contributing $400 per month and has $180, 000 in her RRSP. Assume she will make an annual return of seven percent. Select one: a. $1275 b. $336 c. $681 d. $1133
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Problem #3 Natasha, age 62, purchases an annuity for $43,200. Natasha will receive $400 per month for the rest of her life. The expected return multiple is 22.5. (this factor is from Table 3-1, page 3-21) Question: At age 65, Natasha may exclude what amount from income?
Part A: By the end of this year, you will be 35-years old, and you want to plan for your retirement. You wish to retire at the age of 65, and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened your retirement account with a 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate throughout your retirement years. What is the face value, not the actual value, of the bond that you will be investing in? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above. How much will your inheritors receive?
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