Stephen Bosworth, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $34,000 per year on June 30, beginning in 2016 and continuing through 2019. To develop this fund, Stephen intends to make equal contributions on June 30 of each of the years 2012
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- Steve Weatherspoon, a super salesman contemplating retirement on his ffty-ffth birthday, decides to create a fund on an 9% basis that will enable him to withdraw $ 16,000 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund. Steve intends to make equal contributions on June 30 of each of the years 2020-2023. What are Steve's contributions to the fund ?Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $20,000 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund, Clarence intends to make equal contributions on June 30 of each of the years 2020–2023. Instructions a. How much must the balance of the fund equal on June 30, 2023, in order for Clarence to satisfy his objective? b. What are each of Clarence’s contributions to the fund?Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 12% basis that will enable him to withdraw $25,300 per year on June 30, beginning in 2029 and continuing through 2032. To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 2025–2028. What are each of Leon’s contributions to the fund? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Leon’s contributions to the fund $
- Steve, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 9% basis that will enable him to withdraw $67,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Steve intends to make equal contributions on June 30 of each of the years 2017–2020. How much must the balance of the fund equal on June 30, 2020, in order for Steve to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124, and final answer to 2 decimal places, e.g. 4,585.81.) Balance of the fund equal on June 30, 2020 $enter the balance of the fund equal on June 30, 2020 in dollarsSteve, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 9% basis that will enable him to withdraw $67,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Steve intends to make equal contributions on June 30 of each of the years 2017–2020. How much must the balance of the fund equal on June 30, 2020, in order for Steve to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124, and final answer to 2 decimal places, e.g. 4,585.81.) Balance of the fund equal on June 30, 2020 $enter the balance of the fund equal on June 30, 2020 in dollars check_circle Step 1 Steve will withdraw $67,000 per year for four years from June 2021 to 2024 Present value of an annuity of $67,000 per year discounted at 9% per year Value of fund as of June 30 2020 can be calculated using the following formula: Drawings per year x (1 –(1+r)-n/Rate) R= Rate per…Ricky, an executive VP contemplating retirement on his sixty fifth birthday, decides to create a fund on a 6% basis that will enable him to withdraw $90,000 per year on July 31, beginning in 2025 and continuing through 2029. To develop this fund, Rich intends to make equal contributions on July 31 of each of the years 2020–2024.1. Compute how much the balance of the fund must equal on July 31, 2024, in order for Rich to satisfy his objective.2. Compute the amount of Rich’s contributions to the fund
- Morgan Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $24,390 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund, Morgan intends to make equal contributions on June 30 of each of the years 2020-2023. (a) Click here to view factor tables How much must the balance of the fund equal on June 30, 2023, in order for Morgan to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Balance of the fund equal on June 30, 2023 $John, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 12% basis that will enable him to withdraw $60,000 per year on June 30, beginning in 2029 and continuing through 2033. To develop this fund, John intends to make equal contributions on June 30 of each of the years 2025 - 2028. How much must the balance of the fund equal on June 30, 2029, in order for John to satisfy his objective? Balance of the fund equal on June 30,2029: $__________A professor wishes to provide a fund for his retirement such that from his 60th to 70th birthdays he will be able to withdraw equal sums of P18,000 for his yearly expenses. He invests equal amount for his 41st to 59th birthdays in a fund earning 10% compounded annually. How much should each of these amounts be?
- (Computations for a Retirement Fund) Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $20,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Clarence intends to make equal contributions on June 30 of each of the years 2017–2020.Instructions(a) How much must the balance of the fund equal on June 30, 2020, in order for Clarence to satisfy his objective?(b) What are each of Clarence’s contributions to the fund?Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 4.47% p.a. compounded half-yearly (2=4.47% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (b) Assume that two years after the donation, Mike needs to withdraw $1,000,000 from the fund and use the remaining amount to provide an annual scholarship in perpetuity. The time of the first scholarship will be unchanged (3.5 years after the date of the donation). What is the new annual scholarship amount (rounded to two decimal places)? a. 101959.37 O b. 206197.54 O c. 203631.53 O d. 207511.86Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 3.43% p.a. compounded half-yearly (j2=3.43% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (b) Assume that two years after the donation, Mike needs to withdraw $1,000,000 from the fund and use the remaining amount to provide an annual scholarship in perpetuity. The time of the first scholarship will be unchanged (3.5 years after the date of the donation). What is the new annual scholarship amount (rounded to two decimal places)?