D Question 21 Based on your answer from question 20, how much life insurance do you need to purchase under desired income method? O $1,080,981.2 O $1,549,145.6 $2,400,912.4 O $2,040,816.3 2.5 pts
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- A2 7a May I please have the answer in formula form and not excel. thx:) 7. You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. Once retired, you plan to move to a tax-free Caribbean state, where you believe you can live comfortably on your retirement savings. You plan to make your first withdrawal from your retirement savings when you retire at age 65 and your last withdrawal one month before your 85th birthday. Based on family history, you expect to live until exactly age 85. Your plan is to have a total of $1 million when you retire. Your current salary is $36,000 per year, or $3,000 per month. Your personal tax rate is approximately 30%. You estimate that you can earn an average return of 12% APR compounded annually on any money you invest over the next 60 years. You want to start putting aside a fixed amount of money at the end of every month until your retirement at age 65. You will make your first deposit one month from now…3Question 56 The probability that a 37-year-old white male will live another year is .99828. What premium would an insurance company charge to break even on a one-year $1 million term life insurance policy? Break-even $_______
- eBook Chapter 14Financial Planning Exercise 8Deciding between traditional and Roth IRAs Elijah James is in his early 30s and is thinking about opening an IRA. He can't decide whether to open a traditional/deductible IRA or a Roth IRA, so he turns to you for help. To support your explanation, you decide to run some comparative numbers on the two types of accounts; for starters, use a 25-year period to show Elijah what contributions of $5,000 per year will amount to (after 25 years) if he can earn, say, 9 percent on his money. Round your answers to the nearest dollar. Traditional IRA $ Roth IRA $ Will the type of account he opens have any impact on this amount?-Select-YesNoItem 3 Explain. Assuming that Elijah is in the 25 percent tax bracket (and will remain there for the next 25 years), determine the annual and total (over 25 years) tax savings he'll enjoy from the $5,000-a-year contributions to his IRA. Contrast the (annual and total) tax savings he'd generate…eBook Chapter 14Financial Planning Exercise 2Calculating amount available at retirement Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $2,000 per year for her retirement fund and assumes that she'll retire at age 65. How much will Molly have accumulated when she turns 65 if she invests in equities and earns 10 percent on average? Round your answer to the nearest dollar.$ Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 35. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar.Nest egg amount at 6% = $ Nest egg amount at 10% = $ Comment on your findings.Problem 12-7 Calculating the Amount of Life Insurance Needed Using the Easy Method [LO12-2] Suppose that yours is a typical family. Your annual income is $55,000. Using the easy method, what should be your need for life insurance? (Do not round intermediate calculations.) Life insurance need $ 26,950
- Q8QUESTION 4 Ann wants to buy a property which costs $3,500,000. She gets a mortgage with 75% LTV. What is Ann's Debt to Equity ratio for this purchase? A. 5:1 OB. 3:1 OC. 3:4 OD. 4:1QUESTION 12 Abeer has a major medical pblicy with a 5200o deductible. She is required to pay 25 percent of covered expenses in excess of the deductble. The insurer will pay 75 percent of expenses in excess of the deductble. f Abeer has eligible medical expenses of $10.000. how much will be pad by her insurer? Da57.300 Ob. $7.500 C S0.800 Cd. $7.350
- Problem 5-10 Calculating Perpetuity Values [LO 1] The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $29,000 per year forever. Assume the required return on this investment is 7.5 percent. How much will you pay for the policy? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Policy value todayProblem 7-22 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes 2 years and two trips to Korea and is finalized in 2022. They pay $8,000 in 2021 and $7,500 in 2022 for qualified adoption expenses. In 2022, Carl and Jenny have AGI of $150,000. If an amount is zero, enter "0". If required, carry any division out to four decimal places and round final answers to the nearest dollar. a. What is the adoption credit Carl and Jenny can claim in 2022? $ b. How much credit could they claim if the adoption falls through and is never finalized? c. How much credit could they claim if their AGI was $229,410?