You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would like to withdraw it in equal annual amounts so that nothing is left after 14 years. How much can you withdraw each year if the account earns 4% interest each year? Your Answer: Answer
Q: You want to be able to withdraw $40,000 from your account each year for 15 years after you retire.…
A: The Present Value of this withdrawal is computed as follows: Withdrawal = $40,000 Time period = 15…
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Q: you have 500,000 saved for retirement. your acccount earns 6% interest . how much will you be able…
A: Amount saved for retirement = 500,000 Interest = 6%
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A: The monthly deposit is the amount that is paid every month until the maturity of the period.
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A: Time to retire = 6 years Annual Withdrawal in retirement = 68,500 Time period for withdrawals = N =…
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Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 6% interest. How…
A: Using excel PMT function = PMT(rate,nper,pv,fv)
Q: You will need to deposit $_______ each quarter.
A: Future Value of Annuity: It is computed by compounding the present stream of annuity cash flows…
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A: Annual amount required = 100000 years to live =25 years Number of years to withdraw(n) = 25-1 = 24…
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A: Retirement savings can be calculated using PV function PV (rate, nper, pmt, [Fv], [type]) Rate The…
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A: FV = PV(1 + r)t FV= Future Vale PV = Present Value r= rate of interest t = time in years
Q: An engineer currently has nothing saved for his retirement, which will start 6 years from today. He…
A: Time till retirement is 6 years Future annuties of P68,500 for 5 years Interest rate is 7.16% To…
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A: We need to use the concept of time value of money to solve the question. According to the concept of…
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A: Time period after retirement is 30 years. Required Retirement income is $80,000 per year. Interest…
Q: You have just made your first $4,000 contribution to your retirement account. Assume you earn a…
A: given, pv = $4000 r = 11%
Q: You have $500,000 saved for retirement. Your account earns 10% interest. How much will you be able…
A: Payout annuity is a type of annuity in which initially the account has a sum of money that is later…
Q: Suppose you want to have $500,000 for retirement in 20 years. Your account earns 8% interest. How…
A: Future value of each month payment (FV) = $500,000 Number of years to retirement = 20 Number of…
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A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: You have $500,000 saved for retirement. Your account earns 8% interest. How much will you be able to…
A: Monthly withdrawals refers to the periodic payment made by the bank. Periodic payment can be made…
Q: You have just turned 22 years old, received your bachelor's degree, and accepted your first job.…
A: The Present Value of an Annuity: The estimated annual amount of money required per year of…
Q: You have $300,000 saved for retirement. Your account earns 6% interest. How much will you be able to…
A: Computation as follows:
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A: Required Amount at retirement is $550,000 Time period is 40 years Interest rate is 6.4% Compounded…
Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…
A: Dear student we need to use excel for calculation of monthly deposit(PMT) by using PMT functions.
Q: You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to…
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Q: You have just made your first $4,000 contribution to your retirement account. Assuming you earn an 9…
A: a) Computation:
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A: Here, Annual amount to withdraw = $50,000 Time in years after retirement = 25 years Time to…
Q: You would like to have $650,000 when you retire in 40 years. How much should you invest each quarter…
A: a. GIVEN, future value (FVA) = $650,000 n = 40 m =4 rate of interest (r) = 3.6% applying the formula…
Q: Suppose you want to have $300,000 for retirement in 35 years. Your account earns 10% interest. a)…
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Q: deposits
A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…
Q: You have just turned 22 years old, received your bachelor's degree, and accepted your first job. Now…
A: Calculation: Formula snip:
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A: Using excel PMT function
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A: given information time period = 40 * 12 = 480 interest rate = 10.5%
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: You want to be able to withdraw $40,000.00 from your account each year for 15 years after you…
A: Time Value of Money (TVM): It is based on a principle that the money in hand now has more value than…
Q: Troy has a retirement account worth $1,250,000 . The account draws 4.5% compounded monthly. A .…
A: An annuity is a financial instrument that allows you to set aside a certain amount of money and…
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A: Compounding is a concept used in investing. In case of compounding, interest is earned on both the…
Q: You decide to replace your income of $70,000 a year in retirement for 30 years. How much do you need…
A: Interest rate (r)= 3% Compounding (k)= annually Time period (n)= 30 years Retirement Income (d)=…
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A: First payment, A = 5% x Annual salary a year later = 5% x 90,000 x (1 + 2%) = $ 4,590.00 Growth rate…
Q: Your parents will retire in 23 years. They currently have $290,000 saved, and they think they will…
A: The present value is $290,000.The future value is $900,000.Number of years is 23.
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?You want to be able to withdraw $40,000 from your account each year for 25 years after you retire. If you expect to retire in 15 years and your account earns 6.6% interest while saving for retirement and 6.2% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire?$b) How much will you need to deposit each month until retirement to achieve your retirement goals?$c) How much did you deposit into you retirement account?$d) How much did you receive in payments during retirement?$e) How much of the money you received was interest?$
- You want to be able to withdraw $35,000 from your account each year for 25 years after you retire.You expect to retire in 20 years.If your account earns 4% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?$How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $80,000 per year forever, beginning 31 years from now? Assume the account earns interest at 15% per year. What is the answer, and how can I get it?You want to be able to withdraw $50,000 from your account each year for 20 years after you retire. You expect to retire in 25 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
- You have just made your first $1,500 contribution to your retirement account. Assume you earn a return of9 percent and make no additional contributions. a. What will your account be worth when you retire in 45 years? Future value for starting now b. What will your account be worth if you wait 8 years before contributing? Future value if waiting 8 yearsYou have just made your first $5,000 contribution to your retirement account. Assume youearn a return of 10 percent per year and make no additional contributions.a. What will your account be worth when you retire in 45 years?b. What if you wait 10 years before contributing?c. After calculating parts a and b, what is the lesson learned?How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $90,000 per year forever, beginning 29 years from now? Assume the account earns interest at 14% per year. The amount to be deposited is determined to be $________ .
- You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into an account paying 3%, compounded annually. Assuming you are now 25 and can spare $1,400 per year, how much will you have when you retire at age 65? (Round your answer to the nearest cent.)_____$You have just made your first $4,000 contribution to your retirement account. Assuming you earn an 9 percent rate of return and make no additional contributions. (A) what will your account be worth when you retire in 25 years? (B) what will your account be worth if you wait 10 years before contributing?You have just made your first $5,000 contribution to your retirement account. Assume you earn a return of 10 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years? What if you wait 35 years before contributing? (show answer using function feature in excel)