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: Consider a company that recruited 500 20- year-olds on employment date. The base salary for each of…

A: Contribution Period = 45 years Base Salary = 100,000 Effective Annual Rate = 5% Monthly Rate = 5%/12…

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: ● Gilles Lebouder has just been offered a job at $50,000 a year. He anticipates his salary will…

A: Present value of his lifetime salary is calculated using following equation Present value =…

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: 3. Suppose a high schools graduate earns $40,000 per year while a college graduate makes $80,000.…

A: Earning of school graduate is $40,000 Earning of college graduate is $80,000 Cost of college per…

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: u are getting paid $8,000 a month, at the end of each working month. What is the present value of a…

A: Present value is the equivalent value of money today of the future value of money to be received…

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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: A 45-year-old engineer earning $110,000 per year wants to retire at age 70 with $1.75 million. The…

A: A loan amortization schedule is a table that helps in finding out how much of the periodic loan…

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: Eleanor is switching jobs. She wants to roll over her previous jobs retirement fund of $72,000, Her…

A: The concept of the time value of money states that the same amount of money has more value today…

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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…

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

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A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

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

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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: Your employer will give you a raise in an annual salary of $10,000 if you pass a Professional…

A: We will apply the required formula to calculate the PV of the raise as the period is 35 we will take…

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: I accepted my first job with a $93000 salary, and is already looking forward to retirement in 40…

A: Given: Salary today = $93000 Amount required at the time of retirement = 70% of today salary…

Q: A 25-year old engineer wants to spend $40,000 per year traveling as long as possible before…

A: FORMULA FOR FUTURE VALUE OF ANNUITY (FVA) FVA=A×1+rn-1r where, A= annuity r=rate of interest…

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: Many companies offer retirement plans wherein the company matches the contributions made by the…

A: Year Time to Maturity Salary Sample Working Employer's Contribution Sample Working Employee's…

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

A: $4152

Q: 10 Given the following information/assumptions under a 401 (K) plan:  −The employer matches by…

A: Retirement planning is very important and necessary for life after working life because you have no…

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.