Ashley turned 30 today, and she is planning to save $3.000 per year for retirement, with the fest deposit to be made one year from today. She will invest in a mutual fund, which she expects to provide a of 30% per year throughout her fetime She plans to retire 35 years from today, when she tums 65, and she expects to live for 30 years after retirement, to age 95. Under these assumption how much can she spend in each year after she retres? Her first withdrawal will be made at the end of her first retirement year, and she plans on leaving no money to her hers Your answer should be between 28,800.00 and 95.225.00, rounded to 2 decimal places, with no special characters

Ashley turned 30 today, and she is planning to save $3.000 per year for retirement, with the fest deposit to be made one year from today. She will invest in a mutual fund, which she expects to provide a of 30% per year throughout her fetime She plans to retire 35 years from today, when she tums 65, and she expects to live for 30 years after retirement, to age 95. Under these assumption how much can she spend in each year after she retres? Her first withdrawal will be made at the end of her first retirement year, and she plans on leaving no money to her hers Your answer should be between 28,800.00 and 95.225.00, rounded to 2 decimal places, with no special characters

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

An engineer planning for her retirement will deposit 15% of her salary each year into a stock fund. If her salary this year is $88000(end of year 1) and she expects her salary to increase by 12% each year, what will be the future worth of the fund after 16 years if it earns 10% per year?
Shauna wishes to establish a trust fund from which her son can withdraw $50,000 every six months for 18 years, when he reaches 30 years old. After 8 years, he will receive $500,000 for college. The trust will be invested at 8.7% per annum compounded semi-annually. How large should the trust be?
Six years ago, Gladys opened a retirement account with an initial deposit of $14,000. Each year since then, she has added $2,000 to the account at the end of each year. She plans on contributing for the next 25 years. How would you determine the future value of her account at retirement? O Future value of a lump sum and future value of an annuity. O Future value of an annuity and the present value of a lump sum. O Future value of a lump sum and present value of an annuity. O Future value of an annuity.
Sarah invests $5,400 in a retirement fund that pays 4.2% interest. Compare the value of the fund after 25 years if (a) the interest is simple interest. (b) the interest is compounded quarterly. (c) Which one is the more profitable option for Sarah?
Bilbo plans to retire in 25 years (t=25) from today and to save $4,000 per month until his retirement with the first saving starting from today (t=0). He expects to have $2,000 monthly expense starting from the first month after year 25 (t=25) through year 50 (t=50). He also wants to leave an amount of inheritance to his son Frodo at year 50 (t=50). The discount rate for Bilbo’s entire life is 6% (APR). Suppose Bilbo strictly follows his financial plan, a) how much savings would Bilbo have in year 25 (t=25)? b) how much at most would Bilbo’s inheritance be in year 50 (t=50)? no excel please
Kate is 28 years old today and is beginning to plan for her retirement . She wants to set aside an equalamount at the end of each of the next 37 years so that she can retire at age 65 . She expects to live to the maximum ageof 90 and wants to be able to withdraw $250,000 per year for 25 years from the account on her 66th through 90th birthday. The account is expected to earn 5% annually. Determine the size of the annual deposit by kate
Sherry has a goal of retiring with $427,480 by making weekly deposits into an investment account whose annual interest rate is 1.1%. If she will retire in 25 years, how much interest will she earn?
Ms. Anna Ang, aged 39, recently purchased an endowment plan from an insurer that requires her to set aside $24,000 per year for the next 23 years till she retires at age 62. The first premium payment occurs at the beginning of the period. Assuming an inflation rate of 2% and an estimated rate of return of 4.0% from the endowment plan, what is the estimated future value of Anna’s regular savings at age 62?
Karen Kushida is 25 years old, and intends to retire at age 65. According to the estimation of life expectancy for Canadian women, she expects to live for 20 years in retirement. Therefore, Karen needs to save sufficient funds in the next 40 years to provide for herself for the subsequent 20 years. She plans to make monthly contributions to an equity-based mutual fund earning 10.5% annually. At retirement, Karen will put her savings into guaranteed investment eertificates (GIC's), paying 5.5%. Taking Canada Pension Plan income as well as inflation into account, Karen estimates that she will need a monthly income of $4000 throughout retirement. How much must she invest cach month in mutual fund to ensure this standard of living? Assume that there is monthly compounding for the mutual fund.
Michael 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 11 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 $
Sandra plans to retire and can receive a lump sum of $26,376 from her pension provider. She decides to invest of the lump sum for 8 years and use the rest for 3 travelling. Her bank account pays 4.99% compound interest per annum. How much interest will Sandra receive from this investment after 8 years? Round your answer to the nearest thousand dollars. %24
Sarah Wiggum would like to make a single investment and have $1.7 million at the time of her retirement in 40 years. She has found a mutual fund that will earn 6 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.7 million? To have $1.7 million at retirement, the amount Sarah must invest today is $_________(Round to the nearest cent.) see attachment for PVIF table

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