2. Your client is 30 years old and wants to retire at age 55. They currently have $100,000 in their 401kplan. The portfolio you recommend has an 8% expected return. Ifyour client adopts yourrecommendations and starts monthly contributions of $350 a month starting ONE MONTH from today,how much do you project you client will have at retirement?Age when client plans to retire:Current age of clientYears until client plans to retireI/YPMTFVPV

Hence, the present value of monthly contribution is $44,835.The present value of the contribution…

Answered: 2. Your client is 30 years old and…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

You would like to retire in 50 years, as a millionaire. If you have $20 000 today what rate of return do you need to earn to achieve your goal? Select one: a. 8.41% b. 8.14% c. Cannot be calculated d. 8.00%
URE ic Gail Trevino expects to receive a $580,000 cash benefit when she retires seven years from today. Ms. Trevino's employer has offered an early retirement incentive by agreeing to pay her $310,000 today if she agrees to retire immediately. Ms. Trevino desires to earn a rate of return of 10 percent. (PV of $1& and PVA of $1) Note: Use appropriate factor(s) from the tables provided. raw Required a. Calculate the present value of the $580,000 future cash benefit. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer's offer? Note: Round your final answer to the nearest whole dollar value. Present value Should Ms. Trevino accept the offer?
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Help with the last question: your income will be $_____ per year
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K Sarah Wiggum would like to make a single investment and have $2.4 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 3 percent annually How much will Sarah have to invest today? Sarah invests that amount and could eam a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $2.4 million? Click on the table icon to view the PVIF table 4 To have $2.4 million at retirement, the amount Sarah must invest today is 5 (Round to the nearest cent) If Sarah invests that same amount and earn a 13% annual return, she could retire in approximately years (Round to one decimal place)
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