(Future value of a complex annuity) Springfield mogul Montgomery Burns, age 80, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1 billion at the beginning of each year for 10 years from a special offshore account that will pay 20 percent annually. In order to fund his retirement, Mr. Burns will make 20 equal end-of-the-year deposits in this same special account that will pay 20 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund this retirement account?
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![(Future value of a complex annuity) Springfield mogul Montgomery Burns, age 80, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1 billion at the beginning of each year for 10 years from a special offshore account that will pay
20 percent annually. In order to fund his retirement, Mr. Burns will make 20 equal end-of-the-year deposits in this same special account that will pay 20 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund this
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- (Future value of a complex annuity) Springfield mogul Montgomery Burns, age 90, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $0.9 billion at the beginning of each year for 9 years from a special offshore account that will pay 22 percent annually. In order to fund his retirement, Mr. Burns will make 10 equal end-of-the-year deposits in this same special account that will pay 22 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund this retirement account?(Future value of a complex annuity) Springfield mogul Montgomery Burns, age 75, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1.1 billion at the beginning of each year for 6 years from a special offshore account that will pay 19 percent annually. In order to fund his retirement, Mr. Burns will make 25 equal end-of-the-year deposits in this same special account that will pay 19 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund this retirement account? a. If the retirement account will pay 19 percent annually, how much money will Mr. Burns need when he retires? $ billion (Round to three decimal places.) b. How large of an annual deposit must he make to fund this retirement account? $ million (Round to two decimal places.) @ 2 30€ W S X ommand JUN 26 # 3 80 F3 E D C $ 4 DOD 000 F4 R F % 5 V A FS T G ♫ ^ 6 tv A MacBook Air B F6 Y H & 7 44 F7 U N…(Compounding using a calculator and annuities due) Springfield mogul Montgomery Burns, age 85, wants to retire at age 100 in order to steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1.2 billion at the beginning of each year for 9 years from a special offshore account that will pay 22 percent annually. In order to fund his retirement, Mr. Burns will make 15 equal end-of-the-year deposits in this same special account that will pay 22 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund this retirement account? a. How much money will Mr. Burns need when he retires? $nothing billion (Round to three decimal places.)
- Springfield mogul Montgomery Burns, age 90, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1.1 billion at the beginning of each year for 7 years from a special offshore account that will pay 18 percent annually. In order to fund his retirement, Mr. Burns will make 10 equal end-of-the-year deposits in this same special account that will pay 18 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund this retirement account?← (Future value of a complex annuity) Springfield mogul Montgomery Burns, age 80, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $0.9 billion at the beginning of each year for 8 years from a special offshore account that will pay 25 percent annually. In order to fund his retirement, Mr. Burns will make 20 equal end-of-the-year deposits in this same special account that will pay 25 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund this retirement account? a. If the retirement account will pay 25 percent annually, how much money will Mr. Burns need when he retires? $billion (Round to three decimal places.) b. How large of an annual deposit must he make to fund this retirement account? million (Round to two decimal places.)Springfield mogul Montgomery Burns, age 75, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $ 0.9 billion at the beginning of each year for 7 years from a special offshore account that will pay 26 percent annually. In order to fund his retirement, Mr. Burns will make 25 equal end-of-the-year deposits in this same special account that will pay 26 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund this retirement account? Question content area bottom Part 1 a. If the retirement account will pay 26 percent annually, how much money will Mr. Burns need when he retires? $ enter your response here billion (Round to three decimal places.)
- Suppose your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $80,000 from her savings account on each birthday for 15 years following her retirement; the first withdrawal will be on her 66th birthday. Your friend intends to invest her money in the local credit union, which offers 9 percent interest per year. She wants to make equal annual payments on each birthday into the account established at the credit union for her retirement fund. If she starts making these deposits on her 36th birthday and continues to make deposits until she is 65 (the last deposit will be on her 65th birthday), what amount must she deposit annually to be able to make the desired withdrawals at retirement? b) Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lump-sum payment on her 35th birthday to cover her retirement needs.…Cheryl Wilcox is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,200 per month for twenty years. (Round your answers to the nearest cent.) (a) How large a monthly payment must Cheryl Wilcox make if she saves for her payout annuity with an ordinary annuity, which she sets up thirty years before her retirement? (The two annuities pay the same interest rate of 8% compounded monthly.) (b) Find the total amount that Cheryl will pay into her ordinary annuity. Compare it with the total amount that she will receive from her payout annuity. Cheryl receives $ _____ more than she paid.Linus would like to start saving for his retirement. Starting April 1, 1950, he will make annual deposits into an account, with the last deposit coming on April 1, 1990. Linus assumes he will get pay raises, and plans to increase his deposits by 3.1 percent each year. If he would like to be able to withdraw 44000 dollars per year forever, with the first withdrawal on April 1, 1993, how much will Linus's first deposit need to be? (Assume an interest rate of 4.1 percent effective throughout.)
- A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals. Years until retirement: 30 Amount to withdraw each year: $120,000 Years to withdraw in retirement: 25 Interest rate: 7.5% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. Assume that the inflation rate is 3%. Consequently, when your friend retires she will want to withdraw $120,000 each year in today’s dollars. If she starts making deposit amounts in one year and her deposits increase at the inflation rate of 3% each year until she makes her last deposit on the day she retires, what amount must she initially deposit to be able to make the desired withdrawals at retirement?Gary is planning for his retirement this year. One option that has been presented to him is the purchase of an annuity that would provide a $31, 000 payment each year for the next 18 years. Factor Table Appendix 9.1 Present value of $1 received in n periods = 0.1799 Appendix 9.2 Present value of an annuity of $1 per period= 8.2014 Calculate how much Gary should be willing to pay for the annuity if he can invest his funds at 10% ( For calculation purposes, use 4 decimal places as displayed in the factor table provided and round the final answer to 0 decimal places, e.g. 58,971)A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals. Years until retirement: 30 Amount to withdraw each year: $120,000 Years to withdraw in retirement: 25 Interest rate: 7.5% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. Assume that the inflation rate is 3%. Consequently, when your friend retires she will want to withdraw $120,000 each year in today’s dollars. How much does she need to have in retirement at the end of year 30 in order to receive her retirement payments assuming that these retirement payments continue to increase at 3% per year throughout her retirement?
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