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 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.

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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Sharon has worked for a company with a retirement program, and today is retiring from her job with the amount of $157000 in her retirement account. She decides to withdrawal an equal amount from this account, once a year, beginning immediately, and ending 25 years from today (for a total of 26 payments). If the interest rate is 6.75%, solve for the annuity amount such that she uses up her full accumulation. $ Place your answer in dollars and cents. Do not use a dollar sign or comma as part of your answer. For example, an answer of fifty four point three eight would be placed as 54.38.
J'Mal wishes to retire at age 65. At the age of 21, he begins depositing $35 per month into an account earning 8.5% AAPR. How much money will he have when he turns 65?
Nasser is saving for his retirement by making deposits of $1,400 on each birthday into a savings account starting on his 37th birthday and ending on his 44th birthday (inclusive). Given an effective annual rate of interest of 4.4%, how much will he accumulate by his 65th birthday?
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. $120,661.86. $119,368.93.
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 $2,565,252.00 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 9.00% interest rate.
Oscar purchases an annuity in 2000 for $450,000 which will pay him $90,000 a year for life starting at age 65. His life expectancy at age 65 is 20 years. He receives $90,000 during 2021 which is the year in which he turns 68. He will report as income for 2021 of: 90,000 77,500 22,500 zero none of the above
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.
Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2021). In 2021, his net Schedule C income was $300,000. This was his only source of income. This year, Reggie is considering setting up a retirement plan. What is the maximum amount he may contribute to the self-employed plan in each of the following situations? (Round your intermediate calculations to the nearest whole dollar amount.) a. He sets up a SEP IRA. b. He sets up an individual 401(k).
Andrea, a self-employed individual, wishes to accumulate a retirement fund of $250,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 4.5%/year compounded monthly, to reach her goal upon retirement 20 years from now? (Round your answer to the nearest cent.
In 2022, Pierre was 67 years of age and he decided to transfer his RRSP assets into a RRIF in June last year. When is he required to make his first withdrawal from his RRIF account? He should have made his first withdrawal before December 31, 2022 He must make his first withdrawal before December 31, 2023 He must make his first withdrawal in 2026 when he is 71 years of age He must make his first withdrawal in 2027 when he is 72 years of age
Bob makes his first $600 deposit into an IRA earning 7.6% compounded annually on his 24th birthday and his last $600 deposit on his 45th birthday (22 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 7.6% interest compounded annually until Bob retires on his 65th birthday. How much is in the IRA when Bob retires? The amount in the IRA when Bob retires is $____ (Round to the nearest cent as needed)
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 =

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