ssume you are at age 65 and have the following assets: 1. Pension Plan worth $500,000. You plan to take an ordinary annuity on your pension to withdraw all assets in 20 years. Assume 3.5% interest per year. You will get monthly payments for 20 years. 2. Social Security - $21,600 per year for 20 years. Assume that this is the amount you will receive each year. 3. Savings worth $250,000. You plan to take an ordinary annuity to withdraw all assets in 20 years. Assume 3.5% interest per year. You will get monthly payments for 20 years. 1. What will be the monthly amount received individually from the pension plan, social security, and savings? What will be the monthly total? 2. What will be the yearly amount received individually from the pension plan, social security, and savings? What will be the yearly total? 3. What will be the 20-year amounts received individually from the pension plan, social security, and savings? What will be the 20-year total amount?
ssume you are at age 65 and have the following assets: 1. Pension Plan worth $500,000. You plan to take an ordinary annuity on your pension to withdraw all assets in 20 years. Assume 3.5% interest per year. You will get monthly payments for 20 years. 2. Social Security - $21,600 per year for 20 years. Assume that this is the amount you will receive each year. 3. Savings worth $250,000. You plan to take an ordinary annuity to withdraw all assets in 20 years. Assume 3.5% interest per year. You will get monthly payments for 20 years. 1. What will be the monthly amount received individually from the pension plan, social security, and savings? What will be the monthly total? 2. What will be the yearly amount received individually from the pension plan, social security, and savings? What will be the yearly total? 3. What will be the 20-year amounts received individually from the pension plan, social security, and savings? What will be the 20-year total amount?
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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Transcribed Image Text:Assume you are at age 65 and have the following assets:
1. Pension Plan worth $500,000. You plan to take an ordinary annuity on your pension to
withdraw all assets in 20 years. Assume 3.5% interest per year. You will get monthly
payments for 20 years.
2. Social Security - $21,600 per year for 20 years. Assume that this is the amount you will
receive each year.
3. Savings worth $250,000. You plan to take an ordinary annuity to withdraw all assets in
20 years. Assume 3.5% interest per year. You will get monthly payments for 20 years.
1. What will be the monthly amount received individually from the pension plan, social
security, and savings? What will be the monthly total?
2. What will be the yearly amount received individually from the pension plan, social
security, and savings? What will be the yearly total?
3. What will be the 20-year amounts received individually from the pension plan, social
security, and savings? What will be the 20-year total amount?
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