Don't use Ai and chatgpt.Answer in step by step with explanation. At 20 years old, Josh is an avid saver. He wants to put an equal amount each year from age 21 to 50 (30 years) such that starting atage 65 he can make a guaranteed annual withdrawal of $50,000 forever without touching the corpus, which will be the inheritancemoney for his family. He will make no deposits during the years of age 51 through 65. At a conservative return of 6.5% per year for allthe years, what amount must he invest each year from age 21 through 50?The amount that must be invested each year is $

This problem involves calculating the present value of a perpetuity.Step 1: Calculate the present…

Answered: At 20 years old, Josh is an avid saver.…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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At 20 years old, Josh is an avid saver. He wants to put an equal amount each year from age 21 to 50 (30 years) such that starting at age 65 he can make a guaranteed annual withdrawal of $55,000 forever without touching the corpus, which will be the inheritance money for his family. He will make no deposits during the years of age 51 through 65. At a conservative return of 4.5% per year for all the years, what amount must he invest each year from age 21 through 50? The amount that must be invested each year is $ ?
bob wants to retire in 10 years and then have enough money saved to withdraw $75,000 a year for 15 years at 8 %.how much does bod need to invest semiannually for the next 10 years to fullfill his dream? he is able to invest in an ordinary annuity that yields 8.00% for both investments.bob currently has no funds invested
Jerry wishes to retire at age 65. He wishes to receive an annuity that pays $50,000 per year continuously for 40 years. He can deposit $250,000 into an account at any age between 35 and 65. If 8-15%, at what exact age should he deposit the money so that it will completely fund the annuity with nothing left over?
Madison is planning to save for his newborn daughter’s college tuition, to be paid in 18 years. The amount he wishes to have by that time is $70,000. He plans to deposit $2,300 in a bank account every year for 18 years, starting next year. Suppose the account pays 2% interest on deposits, compounded annually. How much would he need to deposit right now, to make up the remaining amount necessary by the end of 18 years? a. $13,378.03 b. $14,529.48 c. $15,841.33 d. $17,003.96 e. $18,458.72.
I understand the awnser to this question is B but can you explain in detail why it is B. You inherit $300, 000 from your parents and want to use the money to supplement your retirement. You receive the money on your 65th birthday, the day you retire. You want to withdraw equal amounts at the end of each of the next 20 years. What constant amount can you withdraw each year and have nothing remaining at the end of 20 years if you are earning 7% interest per year? A) $15,000 B) $28, 318 C) $33, 574 D) $39, 113
Despite his relative youth, Samuel Hunter has started planning for his retirement. At present, he has $3,000 he can invest, and he believes that he will be able to invest that amount each year for the next 39 years—40 contributions in total. Round answers to the nearest whole number. a. If his investment earns 4% per year for the 40 years, how much will Samuel have accumulated at the end of 40 years? b. If Samuel delays investing for 10 years, how will that affect the balance accumulated at the end of 40 years? c. If Samuel begins investing now and finds an investment earning 5% per year for 40 years, how much more will he have accumulated than if he earns 4%?
Charles wants to retire in 17 years. At that time he wants to be able to withdraw $22,000 at the end of each year for 19 years. Assume that money can be deposited at 5% per year compounded annually. What exact amount will Charles need in 17 years?
Sandra Jones intends to retire in 20 years at the age of 65. As yet, she has not provided for retirement income, and she wants to set up a periodic savings plan to do this. She has the opportunity to make equal annual payments into a savings account that pays 4 percent interest per year. How large must her payments be to ensure that after retirement, she will be able to draw $30,000 per year from this account until she is 80? \
Jessica is 25 year old now and he wants to start saving up for her retirement fund.She will retire at the ageof 55. She aims to withdraw $110,000 from her savings account on each birthday for 25 years followingher retirement.It is to be noted that the first withdrawal will be held on her 56 th Birthday. Jessica wants toto invest her money in the investment fund where she will get 7 percent interest per year and she will makeequal annual end of year deposit each year for her retirement fund.a.If she starts making these deposits onher 26th birthday continuing depositing till she is 55 ,what amount she should start depositing each year toaccumulate the retirement fund ?b.Lets say, Jessica has just got huge amount of money from her family.Rather than making equal annual payments, she has decided to make one lump sum payment on her 25thbirthday to cover her retirement needs. What amount does she have to deposit?c.Lets say, her employerwill contribute $1,000 profit sharing into her account…
Starling wants to retire with $1,950,000 in his retirement account exactly 36 years from today. He will make annual deposits each year at the end of each year to fund his retirement account. If he can earn 9.09 percent per year, how much does he deposit each year? MUST USE EXCEL FORMULA! NOT ALGEBRAICALLY!
Marc has nothing saved for retirement. He wants to receive $46,000.00 per year for 5 years during retirement. The first of these payments will be received in 7 years. Marc can earn a return of 9.38 percent per year. How much does Marc need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first annual savings contribution in 1 year and all savings contributions are equal? O $21,324.88 (plus or minus 10 dollars) O $25,513.05 (plus or minus 10 dollars) O $23,325.15 (plus or minus 10 dollars) O $20,819.31 (plus or minus 10 dollars) O none of the answers are within 10 dollars of the correct answer
Michael and Ellie plan on retiring 32 years from today. At that time, they plan to have saved the same amount. Michael is depositing $18,000 today at an annual interest rate of 4.2 percent. How will Ellie's deposit amount vary from Michael's if Ellie also makes a deposit today, but earns an annual interest rate of 3.2 percent? Ellie's deposit will need to be than Michaels. (Assume annual compounding on both accounts.) O $4,118.42 more $6,506.94 more $3,417.09 more $4,702.92 less None of the above

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