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- Jessica is 25 year old now and he wants to start saving up for her retirement fund.She will retire at the ageof 55. She aims to withdraw $110,000 from her savings account on each birthday for 25 years followingher retirement.It is to be noted that the first withdrawal will be held on her 56 th Birthday. Jessica wants toto invest her money in the investment fund where she will get 7 percent interest per year and she will makeequal annual end of year deposit each year for her retirement fund.a.If she starts making these deposits onher 26th birthday continuing depositing till she is 55 ,what amount she should start depositing each year toaccumulate the retirement fund ?b.Lets say, Jessica has just got huge amount of money from her family.Rather than making equal annual payments, she has decided to make one lump sum payment on her 25thbirthday to cover her retirement needs. What amount does she have to deposit?c.Lets say, her employerwill contribute $1,000 profit sharing into her account…At 20 years old, Josh is an avid saver. He wants to put an equal amount each year from age 21 to 50 (30 years) such that starting at age 65 he can make a guaranteed annual withdrawal of $55,000 forever without touching the corpus, which will be the inheritance money for his family. He will make no deposits during the years of age 51 through 65. At a conservative return of 4.5% per year for all the years, what amount must he invest each year from age 21 through 50? The amount that must be invested each year is $ ?Michael is updating his estate plan for himself and his family. He would like to provide an income of $ 3000 everymonth starting 10 12years from now and continuing for the next 20 years. He has started his account with an initialdeposit of $ 10,000 and he knows his life insurance, maturing in five years, will have a cash value of $ 150,000. Tomake up the difference , Michael has decided to make monthly deposits in the account. How much should eachdeposit be if all interest is computed at 6 percent compounded monthly ?
- Marc has nothing saved for retirement. He wants to receive $46,000.00 per year for 5 years during retirement. The first of these payments will be received in 7 years. Marc can earn a return of 9.38 percent per year. How much does Marc need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first annual savings contribution in 1 year and all savings contributions are equal? O $21,324.88 (plus or minus 10 dollars) O $25,513.05 (plus or minus 10 dollars) O $23,325.15 (plus or minus 10 dollars) O $20,819.31 (plus or minus 10 dollars) O none of the answers are within 10 dollars of the correct answerSuppose Mr. Ali wish to retire thirty years from today. He has just recieved a lump-sum amount of $30000 from inheritance, he expect that he may need $50000 on the marriage of his daughter 20 years from today. He determines that he needs $15000 per year once he retires, with the first retirement funds withdrawn one year from the day he retires. He estimates that he will earn 10% per year on the retirement funds and that he will need funds up to and including in his 20th birthday after retirement. a) how much he needs to deposit an account today so that he has enough funds to meet all his future expenditures? b) how much he needs to deposit each year in an account, starting one year from today, so that he may have enough funds to meet all his future requirements? c) suppose that an investment promises to pay a nominal 11.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounding (a) annually? (b) semi…John has decided to start saving for his retirement. Beginning on his twenty-first birthday, John plans to invest $2,000 each birthday into a savings investment earning a 7 percent compound annual rate of interest. He will continue this savings program for a total of 10 years and then stop making payments. But his savings will continue to compound at 7 percent for 35 more years until John retires at age 65. How much will John have at age 35?
- Mr. Arman has decided to start saving for his retirement. Beginning on his twenty-sixth birthday, Arman plans to deposit Tk. 12,000 each birthday into a saving account earning 10% compound annual interest rate. He will continue this saving program for a total of 10 years andthen stop payments. But his savings will continue to compound at 12% for 30 more years, until he retires at the age of 65. Mr. Jamal also plans to deposit Tk. 12,000 a year in a saving account on each birthday at 12%, and will do so for a total of 35 years. However, Jamal will not begin his contributions until his thirty-first birthday. How much will Mr. Arman’s and Mr. Jamal’s savings programs be worth at the retirement age of 65? Who will be better off financially at retirement, and by how much? (Assume annual compounding for each case).Mr. Agunton is planning for her retirement. He is 30 years old today and would like to have N500,000 when he turns 55, he estimates that he will be able to earn 8 percent rate of return on her retirements over time; he wants to set aside a constant amount of money every year (at the end of the year to help achieve his objective. How much money did Agunfon invest at the end of each of the next 25 years to realize his goal of N500,000 at the endDespite his relative youth, Samuel Hunter has started planning for his retirement. At present, he has $3,000 he can invest, and he believes that he will be able to invest that amount each year for the next 39 years—40 contributions in total. Round answers to the nearest whole number. a. If his investment earns 4% per year for the 40 years, how much will Samuel have accumulated at the end of 40 years? b. If Samuel delays investing for 10 years, how will that affect the balance accumulated at the end of 40 years? c. If Samuel begins investing now and finds an investment earning 5% per year for 40 years, how much more will he have accumulated than if he earns 4%?
- Jack is celebrating his 24th birthday today. He wants to start saving in one year’s time, and retire after his 70th birthday. He decides to deposit the same amount of money on his birthday each year in a bank which offers 3% interest per year, compounded annually. Jack hopes to be able to accumulate SGD 700,000 for his saving account, after he made his scheduled deposit on 70th birthday). Determine the amount he must deposit annually. Round to nearest dollarJohn is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account?C. Fred is planning on retiring this year. How much must his retirement account have in it this year in order to make a $40,000 payment each year for the next 30 years to meet his needs assuming that the appropriate interest rate is 8%?*
