A 45-year-old engineer earning $120,000 per year wants to retire at age 65 with $2 million. The engineer has nothing saved and expects to earn 7% annually on the investment? (a) How much money must be invested each year? (b) If the employer does a 100% match of retirement savings up to 4% of the employee’s salary, how much money must each invest annually?

Q: uppose you have two job offers to consider for similar positions. Company A will pay a salary of…

A: There is a need for retirement planning should be done at the proper time and amount so that we can…

Q: Assume that you have just turned 21, are graduating from college, and are planning for your…

A: Payments at age 22 and 23 = $2000Payments from age 24-30 = $10,000Payments from age 31-30 =…

Q: Assume that you begin saving 3% of your total income in an employer-provided retirement plan at…

A: The savings of the employee are increasing by fix rate of 2% each year, while the income is…

Q: A young engineer’s starting salary is $65,000. The engineer expects annual raises of 2.5%. The…

A: The growth in annual salary of $65,000 is 2.50% and because savings are made as proportion of…

Q: You expect to work for another 30 years. At your retirement in year 30, you expect your company's…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: d) You want to retire in 45 years with $1 million in the bank. You think you can get an average of…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: If you wait until you're 45 to begin investing for retirement, you'll need to invest $2,153 per…

A: we will assume that retirement age is 60. to find the rate we will use the 'RATE' function in excel.…

Q: At age 25, you start work for a company and are offered two retirement options. Retirement option 1:…

A: Compound Interest: It  is the interest earned on interest. It  is calculated  depend on initial…

Q: Your employer contributes $50 a week to your retirement plan. Assume that you work for your employer…

A: A simple financial agreement between two persons is an annuity. A predetermined schedule of payments…

Q: Suppose you have just started 26th year of your life, you plan to retire at the end of age 65, and…

A: The following information has been given:Initial income=$48000Growth rate= 0.2% per month…

Q: A public relations specialist earns $71,500 salary each year. He/she wants to spend no more than…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: 28-year old Kathy has decided to contribute $3000 once every year into her retirement account that…

A:

Q: Differential equations. Your employer automatically puts 10 percent of your salary into a 401(k)…

A: Given the starting salary is $40000, and you expect to receive a 3.5% raise each year.Let s(t) be…

Q: 2. An employee plans on working and contributing to his retirement account monthly for 32 years and…

A: Annuity refers to series of equalized payments that are received or paid either at start or end of…

Q: 1. Assume that you begin saving 3% of your total income in an employer-provided retirement plan at…

A: An "income growth strategy" refers to a deliberate plan or approach aimed at increasing one's…

Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old. Tom…

A: The notion of the time value of money (TVM) is concerned with money's purchasing power capability,…

Q: $200 a week at your job and would like to invest half your earnings. What is the difference between…

A: Given information : Weekly earnings  $200 Lower interest rate  8% Higher interest rate 12%…

Q: The Hamptons want to have $2,750,000 for their retirement in 30 years. How much should they save…

A: Accumulated amount required after 30 Years (A) = $2,750,000 Period = 30 Years Number of monthly…

Q: The median annual income for someone with an Associates Degree is $31,936. The median annual income…

A: Cost of bachelor's degree   Cost of tuition and Fees $55,000 Lost of earnings $64,000 Total…

Q: You just graduated from college and landed your first "real" job, which pays $46, 000 a year. In 14…

A: Future income  is  $54,737.91

Q: You are 25 years old now, and just graduated from college. You got your first job after graduation,…

A: The total number of working years is the retirement age minus the current age. In this case, it is…

Q: Congratulations, you have just been employed! You now have a choice between a flat benefit at…

A: Let's Denote the average salary as S and the years of service as T. The two retirement options are:

Q: 1. An employee plans on working and contributing to his retirement account monthly for 30 years and…

A: According to the rule, because you have posted multiple questions, we will answer the first question…

Q: A 25-year-old engineer earning $65,000 per year wants to retire at age 55 with $2 million, and plans…

A: Since the annual interest rate is not given then we solve the problem by assuming the interest rate…

Q: Consider two competing projects, for which MARR = 12%: Initial Equivalent Investment, P Annuity, A…

A: Initial MARR = 12%Changed new MARR = 25%RoR for Project A = 17.7%RoR for Project B = 15%

Q: a. Suppose that between the ages of 22 and 36, you contribute $9000 per year to a 401(k) and your…

A: My contribution = $9,000Employer contribution = $4,500Total contribution=$9,000+$4,500=$13,500Number…

Q: An engineer changed jobs and is signing up for benefits. The company 401(k) includes a low cost…

A: $4152

Q: client, age 50, who is currently earning $100,000 per year, wishes to retire in 15 years with a…

A: Retirement is a period after employment in which one does not work but needs a fixed income for…

Cash and Liquid Asset Management

Cash management is the process of controlling cash inflow & cash outflow, managing the cashflows inside the business, and utilizing the cash for business operation at any point in time. A business has to maintain a certain level of cash to meet various financial obligations. Cash management is essential because businesses must utilize the cash to generate maximum profit. Cash management also ensures to maintain maximum liquidity in the business.