After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. A) Assume that the payments start on the day of your retirement. B) Assume that the payments start one year after the retirement.

Q: You have just deposited $5,000 into an account that promises to pay you an annual interest rate of…

A: Amount of deposit=$5000Interest rate=5.3%Number of years=10

Q: You deposit $10,000 in a retirement account today at 5.8% interest with annual compounding. How much…

A: Future value = Present Value×[1+Periodic interest rate]^n Where,  n = number of periods = 28…

Q: To find the value of an annuity due, you will multiply the value of the ordinary annuity by…

A: Present value is the current worth of the future payments that are to be received. As per time value…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $1,400,000 by…

A: Future Value = fv = $1,400,000Time = t = 48Interest Rate = r = 12%

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: How much should you be willing to pay for an annuity that begins in 3 years and pays $100 dollars…

A: The monthly discount rate, expressed as a percentage, is an important financial measure used to…

Q: You will deposit $105 from each of your bi-weekly paychecks.  You think that you can earn an…

A: Future value of an annuity is a financial concept used to determine the future value of a series of…

Q: that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in…

A: The time value of money highlights the idea that money invested now will have a higher value than…

Q: Suppose that ​$ 2,500 is set aside each year and invested in a savings account that pays ​8%…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: ou would like to have $25,000 in 5 years for the down payment on a new house following college…

A: An annuity refers to a cash flow series that occurs periodically and that are usually fixed and…

Q: You have decided to start a savings plan for your retirement. You plan to make an annual deposit of…

A: Given information: Annual deposit (PMT) = $90,000 Number of years in accumulation phase (n) = 8…

Q: 3. As part of your future retirement planning, you purchase an annuity that pays 3.5 % Search…

A: The retirement planning involves making regular payments or accumulation of funds that will be used…

Q: You plan to invest $2,000 per year into a retirement account. If you earn a compound annual rate of…

A: Retirement planning is important to accumulate the amount for future use. The regular payment is…

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…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $3,000,000 in…

A: THANK YOU

Q: You are planning to save $1.5 million for retirement over the next 34 years. (a) If you are earning…

A: Savings = $1,500,000Working years = 34Interest rate = 7%Retirement years = 24Inflation rate =2%To…

Q: you for the next 6 years, with your first deposit one month from today. If your savings earn 12.05%…

A: As per the given information: Amount deposited every month = $650Period = 6 yearsInterest rate =…

Q: Thinking ahead to retirement, assume you will be able to earn a 10 percent return on your…

A: Here annuity formula  should be used

Q: oday, you are retiring. You have a total of $411,016 in your retirement savings and have the funds…

A: Retirement savings refers to an amount that is kept aside by a person for the time of retirement and…

Q: What will be the value in your account at the end of Year 30?

A: Future Value of Annuity: It represents the future worth of the annuity payments made for a given…

Q: You would Ilike to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…

Q: Your retirement fund's balance is $50,000 right now. You want to retire in 30 years with $1,000,000.…

A: The topic concerns retirement planning and specifically focuses on calculating the required interest…

Q: ow much must you set aside each year to make sure that you will have $4,000,000 in the account on…

A: Future value of an annuity: It represents the future worth of the annual cash flows made…

Q: what is the present value of this stipen

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

Q: You are saving for retirement. To live comfortably, you decide that you will need $2.5 million by…

A: Yearly deposit refers to an amount that is kept aside for the purpose of saving in any of the…

Q: You currently have $2,320.00 in a retirement Savings account that earns an annual return of 7.59%.…

A: The objective of the question is to find out how much more money needs to be saved annually to reach…

Q: Let’s say that you are saving up for retirement and decide to deposit $3,000 each year for the next…

A: The objective of this question is to calculate the difference in the final amount of savings when…

Q: a) You deposit $200 monthly into an annuity with the goal of accumulating $180,000 after 30 years.…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Suppose you are 20 years old and plan to retire at exactly 60 years old. you will need to withdraw…

A: The time value of money is a financial principle stating that a dollar today is worth more than a…

Q: Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You…

A: Formula for Calculating Future Value = PMT [(1+i)n - 1] / i Here, PMT = 1600              i    =…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.