The answer above is NOT correct.Irene plans to retire on December 31st, 2019. She has been preparing to retire by making annual deposits,starting on December 31st, 1979, of $2100 into an account that pays an effective rate of interest of 9.8%. She hascontinued this practice every year through December 31st, 2000. Her goal is to have $1.5 million saved up at the timeof her retirement. How large should her annual deposits be (from December 31st, 2001 until December 31st, 2019) sothat she can reach her goal?Answer = $ 27291%3D

Answered: he answer above is NOT correct. Irene…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jane and Sue are twins. Today is their 45th birthday. They both invested in a retirement account with 9 percent compounded annually. Jane began to deposit $60000 per year on her 24th birthday for a total of 8 annual deposits, whereas Sue started her first deposit on her 35th birthday, for a total of 20 annual deposits. They both then do nothing by putting aside the account balance till their planned retirement age. (answer to 2 decimal places) a)Calculate Jane’s current retirement account balance on her 45th birthday. b)Based on your answer in a), how long from now does Jane need to wait to accumulate $5.5 million in her retirement account?c)At the time when Sue places her 20th annual deposit , how old will Sue be?d)If Sue planned to accumulate $5.5 million on her 65th birthday, calculate the amount of her annual deposit.
Una Day is planning to retire in 14 years, at which time she hopes to have accumulated enough money to receive an annuity of $17,000 a year for 19 years of retirement. During her pre-retirement period she expects to earn 8 percent annually, while during retirement she expects to earn 10 percent annually on her money. What annual contributions to this retirement fund are required for Una to achieve her objective and sleep well at night? (Use a Financial calculator to arrive at the answer. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Annual contribution $ 7,422 x
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.)
Earl Ezekiel wants to retire in San Diego when he is 65 years old. Earl is now 49. He believes he will need $470,000 to retire comfortably. To date, Earl has set aside no retirement money. Assume Earl gets 10% interest compounded semiannually. How much must Earl invest today to meet his $470,000 goal? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Investment
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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.
Una Day is planning to retire in 11 years, at which time she hopes to have accumulated enough money to receive an annuity of $21,000 a year for 16 years of retirement. During her pre-retirement period she expects to earn 12 percent annually, while during retirement she expects to earn 14 percent annually on her money. What annual contributions to this retirement fund are required for Una to achieve her objective and sleep well at night? (Use a Financial calculator to arrive at the answer. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Annual contribution $
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Starling wants to retire with $1,950,000 in his retirement account exactly 36 years from today. He will make annual deposits each year at the end of each year to fund his retirement account. If he can earn 9.09 percent per year, how much does he deposit each year? MUST USE EXCEL FORMULA! NOT ALGEBRAICALLY!
Bill is twenty-five years from retirement; in order to retire, Bill needs $500,000 in his savings account when he retires in order to maintain his current standard of living. If Bill has $100,000 in his savings account right now, and the account earns 5% annually (compounded continuously), how much does Bill need to save each year to reach his goal? (Assume that Bill continuously deposits this annual sum into his savings account.)
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.)

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