Cecilia is 28 years old today and wants to retire at age 65. She plans to put $5,000 into an account at the end of every year starting at the end of this year and continuing until her 65th birthday. When she reaches age 65, she plans to withdraw the money in equal amounts at the beginning of every year. She assumes she will live until age 90 and make her last withdrawal on her 90th birthday. How big will each withdrawal be if she earns 9% on her investments? $143,358.86. $130,112.13. O $120,661.86. O $119,368.93.

Cecilia is 28 years old today and wants to retire at age 65. She plans to put $5,000 into an account at the end of every year starting at the end of this year and continuing until her 65th birthday. When she reaches age 65, she plans to withdraw the money in equal amounts at the beginning of every year. She assumes she will live until age 90 and make her last withdrawal on her 90th birthday. How big will each withdrawal be if she earns 9% on her investments? $143,358.86. $130,112.13. O $120,661.86. O $119,368.93.

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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Denise has $180,983 saved for her upcoming retirement and will make no further contributions. She wants to allow these funds to accumulate additional interest until her savings are sufficient to allow her to purchase an annuity that will pay $5,000 at the start of every quarter for 20 years. If her funds earn 5% compounded semiannually during both the period of deferral and the annuity period, how long will it be before Denise’s first $5,000 payment can be received?
Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $35,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 3%. He currently has $200,000 saved, and he expects to earn 9% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do not round your intermediate calculations. Round your answer to the nearest cent. $ N
A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 20 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$
Anderson just landed his first job and is scheduled to start work on his 20th birthday. His parents have advised him that even though retirement seems like a long way off, it is important to start planning early. He has decided to deposit $4,500 into a retirement fund at the end of his first working year and hopes to increase this amount by 5% each year thereafter. The retirement fund is projected to pay an average rate of interest of 4%. If Danny plans to retire at age 65, and will therefore make 45 payments into the fund, how much is the retirement fund worth to him today?
After retiring, Valeria wants to be able to withdraw $36,500.00 every year from her account for 27 years. Her account earns 6% interest compounded annually.How much does Valeria need in her account when she retires? Valeria needs$_________ to have in her account when she retires.
John has decided to start saving for his retirement. Beginning on his twenty-first birthday, John plans to invest $2,000 each birthday into a savings investment earning a 7 percent compound annual rate of interest. He will continue this savings program for a total of 10 years and then stop making payments. But his savings will continue to compound at 7 percent for 35 more years until John retires at age 65. How much will John have at age 35?
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
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?
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 71.80. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 71.8 when he fully retires, he will begin to make annual withdrawals of $175, 038.33 from his retirement account until he turns 93.00. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 6.53% interest rate.
Ryan wants to retire in 10 years when he turns 65 but has determined he will need $1,000,000 to quit his job and live a lifestyle that is comfortable with him. He currently has $350,000 in his 401K and plans to save $850 per month until his 65th birthday. If his investment can earn an average of 9.75% per year, will he make his goal of $1,000,000? Please show your work and inputs if you use a calculator to solve the problem.
Eugene began to save for his retirement at age 30, and for 13 years he put $ 250 per month into an ordinary annuity at an annual interest rate of 4% compounded monthly. After the 13 years, Eugene was unable to make the monthly contribution of $ 250, so he moved the money from the annuity into another account that earned 5% interest compounded monthly. He left the money in this account for 22 years until he was ready to retire. How much money did he have for retirement? Retirement amount =
Joanne is retiring this year. When she started saving 40 years ago, she planned to invest $1,000 per year in an account that promised her 5% annual rate of return. She diligently saved $1,000 every year, except for a five-year period that started fifteen years ago and ended ten years ago. How much does Joanne have in her account today?

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