You are 20 years old today. When you turn 62, you want to retire. Starting on your 62nd birthday you want to receive funds from a growing annuity; the first payment would be $60,000 and grow at a rate of 5% per year for a total of 35 payments (including the first one). Your plan is to start saving for this plan on your 24th birthday; your first deposit would be $10,000 and would stay constant for a total of 25 deposits. On your 55th birthday, you calculate the amount of your compounded savings have and need to determine whether you have enough saving or not. On that 55th birthday, do you need to deposit more, or are you over funded and can take money out and still have enough in the account to fund your planned annuity? Assume a discount rate (or rate of return) of 8% for all periods. For this question, see Retirement Problem in Content. When you do the present value calculation for the growing annuity, your result will be the present value as of what birthday?

Assume that Social Security promises you $43,000 per year starting when you retire 45 years from today (the first $43,000 will get paid 45 years from now). If your discount rate is 5%, compounded annually, and you plan to live for 17 years after retiring (so that you will receive a total of 18 payments including the first one), what is the value today of Social Security's promise? ... The value today of Social Security's promise is $ the nearest cent.) (Round to

You are working for a finance firm and a client comes to you and wants to know how much money they should put in an annuity (which earns 2.885% interest compounded quarterly) at the end of each three months for the next 36 years. Their goal is that when they retire at the end of 36 years, they would like the quarterly withdrawals from the annuity to total $68,000 per year and that the annuity is to last for the next 23 years. You are to determine the amount which your client needs to deposit into the annuity at the end of each three months for the next 36 years so that they can meet their retirement goal. Do the following: Show all your work that you used to answer this problem. Label the steps and important values as you solve the problem. Note that when you use the TVM Solver, show the all variables and the values you entered (into the variables) and solved for.  Find the total amount of interest client will earn (from the time they start contributing to the account to when they…

you want to establish an annuity that will pay $7,500 for the next twenty years (end year) your financial institution will establish such an annuity if you deposit $104,000 today. what is the implied rate that the institution is paying on this annuity?

You plan on retiring in exactly 6 years and you would like to have a retirement fund balance of exactly $2,000,000 at that time. You are convinced that you can earn an APR (based on monthly compounding) of 5.1%. If you are making beginning-of-the-month payments into the account, how much does each one of the payments need to be in order to reach your target? To nearest $0.01

(Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Life box in thischapter, you have decided to invest $4,700 at the end of each year into a Roth IRA for the next 40 years. If you earn 8 percent compounded annually on your investment, how much will you have when you retire in 40 years? How much will you have if you wait 10 years before beginning to save and only make 30 payments into your retirement account?

You want to begin saving for your retirement. You plan to contribute $12,000 to the account at the end of this year.  You anticipate you will be able to increase your annual contributions by 3% each year for the next 45 years.  If your expected annual return is 8%, how much do you expect to have in your retirement account when you retire in 45 years? If current interest rate is 28%, a Treasury Bill with 91 days to maturity, and a face value of GH¢ 50,000 should have a market value of? Assuming you bought a 182-day Treasury Bill with a face value GH¢20,000.00 and held it for 45 days. If you want to sell it and interest rate is currently at 25%, at what price will you sell it? A Treasurer buys a 6-month CD issued by a top-class bank with a tenor of 180 days at a yield of 16%. The face value at issue is GH¢10m. In 90-days time the buyer sells the CD when the 3-month secondary market for CDs issued in the names of top-class banks is 40/14.50. The buyer has held the CD for 90days, but now…