Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 72.00. During these years ofpart-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year afterthe day he turns 72.0 when he fully retires, he will wants to have $3,104,476.00 in his retirement account. He he willmake contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must thecontributions be? Assume a 8.00% interest rate.SubmitAnswer format: Currency: Round to: 2 decimal places.

Given Information:Retirement Goal: $3,104,476.00Interest Rate: 8% (0.08 annually)Contributions…

Answered: Derek plans to retire on his 65th…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 40P: Minnie owns a qualified annuity that cost 78,000. The annuity is to pay Minnie 650 per month for...

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Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 74.00. 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 74.0 when he fully retires, he will wants to have $3,437,367.00 in his retirement account. 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 7.00% interest rate.
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. 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 75.0 when he fully retires, he will wants to have $3,392, 232.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65 th birthday. To reach his goal, what must the contributions be? Assume a 8.00% interest rate. Answer format: Currency: Round to: 2 decimal places.
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. 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 75.0 when he fully retires, he will begin to make annual withdrawals of $105,330.00 from his retirement account until he turns 92.00. 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 5.00% interest rate. (ROUND TO 2 DECIMAL PLACES.)
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.
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 73.25. 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 73.25 when he fully retires, he will begin to make annual withdrawals of $150, 876.06 from his retirement account until he turns 90.98. After this final withdrawal, he wants $1.81 million remaining in his account. 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 7.99% interest rate.
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00. 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 70.0 when he fully retires, he will begin to make annual withdrawals of $137,713.00 from his retirement account until he turns 90.00. After this final withdrawal, he wants $1.31 million remaining in his account. 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 9.00% interest rate. (ROUND TO 4 DECIMAL PLACES.)
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Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave in the fund a sum worth $1,000,000 to his nephew who is under his charge. The fund will continue to earn 12% compounded monthly. How much should the monthly deposits be for his retirement plan?
Irene plans to retire on December 31st, 2019. She has been preparing to retire by making annual deposits, starting on December 31st, 1979, of $2450 into an account that pays an effective rate of interest of 9.1%. She has continued this practice every year through December 31st, 2000. Her goal is to have $1.5 million saved up at the time of her retirement. How large should her annual deposits be (from December 31st, 2001 until December 31st, 2019) so that she can reach her goal? Payment = $68573.5
Sam is planning to retire in the next few years and wondering how much his annual CPP would be if he delayed claiming it a few years. His CPP statement indicates he would qualify for CPP of $724 per month at age 65. Assume he stops contributing to CPP at age 65. What amount of annual CPP will he qualify for ANNUALLY if he delays retiring until age 68? Input the answer to the nearest dollar. Answer:
At age 33 Jacob starts making a contribution of $425 at the end of each half-year into a retirement account that pays 6% annually. He continues to do so for 15 years, until he is 48, and then quits making contributions. Suppose that he leaves the money in the account until he is 65. How much money will there be in the account? How much of that money is interest he has earned?
Today is Derek's 25th birthday. Derek has been advised that he needs to have $3,863,156.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 9.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 27.00th birthday and ending on his 65th birthday. How much must those deposits be?

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