Your father needs some advice on his retirement planning. He manages to have $ 100,000 in his account. He plans to sell his house for $80,000, after taxes, in ten years. He will retire in 20 years and expects to save $10,000 a year for the next 10 years, and $ 15,000 a year for the following 10 years. All the saving made at the end of year. If he makes five percent interest on his savings and the rates are expected to increase another 6% after 10 years, how much money is he going to have in his account in 20 years?
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- Mr. Lau is updating his estate plan for himself and his family. He would like to provide an income of $3000 every month starting 10.5 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in five years, will have a cash value of $150,000. To make up the difference, Mr. Lau has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6 percent compounded monthly? Functions: Ordinary Annuities: Sinking Funds and Ordinary annuities: Amortization Note: Cannot use Excel/SpreadsheetMichael is updating his estate plan for himself and his family. He would like to provide an income of $3000 every month starting 10.5 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in five years, will have a cash value of $150,000. To make up the difference , Michael has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6% compounded monthly ?Michael is updating his estate plan for himself and his family. He would like to provide an income of $ 3000 every month starting 10 1/2 (Ten and a half) years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in five years, will have a cash value of $150,000. To make up the difference ,Michael has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6 percent compounded monthly?
- 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 ?You hire Thomas to work for you for five years, and you agree to put away enough money as a lump sum now to fund an annuity for him. At the end of those five years, he will retire and may begin drawing out $ 20,000 per year for five years, starting on the last day of each year (in this case, the end of year 6, from when this arrangement began, through year 10). How much must you invest today if your guaranteed interest rate is 3% compounded annually for all 10 years?You hire Thomas to work for you for five years, and you agree to put away enough money as a lump sum now to fund an annuity for him. At the end of those five years, he will retire and may begin drawing out $20,000 per year for five years, starting on the last day of each year (in this case, the end of year 6, from when this arrangement began, through year 10). How much must you invest today if your guaranteed interest rate is 3% compounded annually for all 10 years? (RESOURCE: Annuities) Note: Another two-stage present value problem, involving first finding a present value at a starting point (even though it occurs in our future!) that will generate a series of future payments and then calculating a single-amount present value today to achieve that future goal when payments (withdrawals) will begin. Please show how to solve for both steps, thank you!
- Michael is updating his estate plan for himself and his family. He would like to provide an income of $3000 every month starting 10.5 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in 5 years, will have a cash value of $150,000. To make 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% compounded monthly? Note: Cannot use Excel/Spreadsheet.Mr. Areola is planning to make an additional investment at the end of each year for his retirement in 20 years. Mr. Areola plans to invest $5,000 each year for the first 5 years, $8,000 each year for the next 5 years, and $ 12,000 each year for the remaining 10 years. If the rate of return of 11 percent can be earned in these investments, how much money will Mr. Areola have at the end of 20 years?Perpetuity: Your grandfather is retiring at the end of next year. He would like to ensure that his heirs receive payments of $10,000 a year forever, starting when he retires. If he can earn 6.5 percent annually, how much does your grandfather need to invest to produce the desired cash flow? Please use Excel to solve
- Mr. Mangano is considering taking early retirement, having saved $400,000. Mr. Mangano wishes to determine how many years the saving will last if he withdraws $60,000 per year at the end of each year. Mr.Mangano's savings can earn 10 percent per year. 11.67 years. 11.35 years 10.90 years 11.53 years. 12.01 yearsMichael Jones plans to save $5,928 every year for the next eight years, starting today. At the end of eight years, Michael will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 10.6 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $enter the future value of investment rounded to 2 decimal placesMr. White is updating his estate plan for himself and his family. He would like to provide an income of $3000 every month starting 10 1/2 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in 5 years, will have a cash value of $150,000. To make up the difference , Mr. White has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6% compounded monthly?