Expected Annual Four-Year Annuity Payment Account Турe of Accumulated Мaximum Home Person Return Investment Purchase $4,000 $. $. $. $. $. $. $. $. Mary Kate Savings 2% Ashley 5,000 CDs 4 Dakota 6,000 Bonds 7 Elle 6,000 Stocks 11

Q: The Weidmans want to save $40,000 in 2 years for a down payment on a house. If they make monthly…

A: Given that;Future value is $40000Interest rate is 12%We need to take the present value as $0

Q: Dina Naples is saving money at the IBM Credit Union for a down payment on a house. How much does she…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Mike Williams, a well-known real estate appraiser, just paid $390,000 for an insurance policy that…

A: Perpetuity amount= $390,000 Cash Flow Amount= $14,600 per year Rate of return=?

Q: Krystal plans to save $500 at the end of Year 1, $600 at the end of Year 2, and $700 at the end of…

A: Money she will save by end of year 3 is future value of all yearly payments

Q: Hale College predicts that in 10 years it will take $200,000 to attend the college for four years.…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Michelle is attending college and has a​ part-time job. Once she finishes​ college, Michelle would…

A: The value of any current asset, depending on the assumed rate of growth, at a future date is called…

Q: Lindsay is 25 years old and has a new job in Web development Lindsay wants to make sure she is…

A: The question is based on the concept of accumulation for retirement, such accumulation uses…

Q: could you go step by step on how to solve?

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Tom and Suri decide to take a worldwide cruise. To do so, they need to save $30,000. They plan to…

A: A = P[(1+r)^t - 1]/ r   A = final amount P = initial principal balance r = interest rate t =…

Q: Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an…

A: Data given:: Tuition costs today = $29000 Annual growth rate in tuition = 5.7% Interest rate on…

Q: Sandy, a manufacturing engineer, just received a year-end bonus of 26,000 dollars that will be…

A: Time value of money-It is based on the concept that money earned today is worth more than similar…

Q: A couple will retire in 40 years; they plan to spend about $35,000 a year in retirement, which…

A: Now problem needs to solved in two steps first calculate Present value of retirement fund and next…

Q: Keith Stone has a 10-year-old daughter, Kate, who will be entering college in 8 years. Keith…

A: Time value of money is a concept that helps in determining the value of cash (or money) at a future…

Q: Ms. Ieda Silva plans to retire in 28 years and expects to live for 25 years after retirement. She is…

A: we can use discounting techniques to value the monthly deposits.

Q: Stuart Daniels estimates that he will need $26,000 to set up a small business in 7 years. How much…

A: The present value of a cash flow is the current worth of a cash flow at a certain rate of interest…

Q: As soon as Erika graduated from college and got her first fulltime job, she decided she would start…

A: Monthly deposit (m) = $400 Monthly deposit period (p) = 120 (i.e. 10 years * 12) Monthly interest…

Q: Bella is 23 years old and wants to invest money for her retirement.  She wants to have $2,000,000…

A: The annual investment is calculated by the function: PMT(Rate,Nper,PV,FV)  Here, Rate = Interest…

Q: Sarah wants to have $20,000 in nine years. If she puts the money in an account which pays 4%…

A: For solving we have to calculate present value of future value considering compounding monthly…

Q: A couple is saving for their newborn daughter’s college education. She will need $25,000 per year…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: A young couple wants to have a college fund that will pay $20,000 at the end of each half-year for 8…

A: Here, The interest Rate is 6% Required Amount is $20,000 at the end of each half-year for 8 years…

Q: Susan gets a job upon completion of her MSME degree with a mechanisms design firm. Her starting…

A: Working note:

Q: Lindsay is 25 years old and has a new job in Web development. Lindsay wants to make sure she is…

A: The question is based on the concept of future value calculation for an annuity type of investment…

Q: Revere College predicts that in 6 years it will take $150,000 to attend the college for four years.…

A: Given information: Future value is $150,000 APR is 7% Number of years is 6

Q: Mrs. Jillian has just turned 16 years old and has her mind set on buying a new car by the time she…

A: Time value of money identifies the depreciation in value of money over the period of time by…

Q: Mr. and Mrs. Davis needs to have $100,000 to start their own catering business in 15 years.  They…

A: Future value (FV) of the savings should be $100000.Number of years ( n ) of savings/investment is 15…

Q: Ronnie invests $55,000 in a food truck (which has a lifespan of two years) , the  net cash flows of…

A: In order to find net present value, subtract the present worth of cash outflows (or initial…

Q: Sara met with a financial planner and has determined that she will need $1,250,000 when she retires…

A: Funds needed after 30 years (FV) = $1,250,000 Monthly interest rate (r) = 0.00470833333333333 (i.e.…

Q: How much money should she save at the beginning of each 3 months

A: Value at a future point of time is equal to sum of savings made and interest on those savings.…

Q: The Weidmans want to save $45,000 in 4 years for a down payment on a house. If they make monthly…

A: Computation:

Q: Suppose a newlywed couple is planning to buy a home two years from now. To save the down payment…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: Delany wants $15,000 saved in 2 years to make a down payment on a house. How much money should she…

A: present value formula: present value=future value1+rmm×n where, r=interest rate m=frequency n=years

Q: Stuart Daniels estimates that he will need $26,000 to set up a small business in 7 years. (a) How…

A: The concept of the time value of money states that money earns interest and hence, money held today…

Q: Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year…

A: in this we have to calculate amount of retirement needed and calculate the present value of that.

Q: Adrian, a single man who wants to buy a house in five years, read an artide that recommended a down…

A: The amount borrowed will be equal to the present value of all the future payment made at the given…

Q: Tala McLouf, a 21-year-old BBA graduate, likes to plan for her future ahead, and would like to save…

A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…

Q: You are graduating in two years and are thinking about your future. You know that you will want to…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: To finance a vacation in 4 years, Elsie saves $450 at the beginning of every six months in an…

A: Future Value The future value is the amount that will be received at the end of a certain period.…

Q: Becca wants to save $900 per quarter for 3 years towards the purchase of an appliance. She feels…

A: Total number of  quarters  in 3 years  = 4 quarters  × 3 years = 12 quarters  Thus, Becca will…

Q: Arnett College predicts that in 18 years it will take $⁢350,000 to attend the college for four…

A: Amount =P 1 +R100N Where P = Principal amount r = Rate of Interest n = Number of Years / Months

Q: A young couple wants to have a college fund that will pay $35,000 at the end of each half-year for 8…

A: Here, Required Amount in every six months for 8 years is $35,000 Interest Rate is 6% Time Period for…

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Arnett College predicts that in 18 years it will take $⁢350,000 to attend the college for four…

A: An annual percentage rate (APR) is the interest rate to be paid each year on a loan, credit card, or…

Q: Suppose a young newlywed couple is planningto buy a home three years from now. To save thedown…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: A father is now planning a savings program to put hisdaughter through college. She is 13, plans to…

A: Given information: Annual cost is $12,000 Expected to increase by 6% annually Annual savings of…

Q: Lucky Lindy has just won $20,000 and wants to invest it for 12 years. There are three plans…

A: Here, Present Value(PV) = Initial Investment Rate (r) = Rate of Interest Time of maturity (n) Future…

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.