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Today is Stanley’s 55th birthday. He plans to retire on his 65th and wants to put aside" the same sum of money every birthday (starting now) up to and including his 65th birthday. He then wants to be able to withdraw $10,000 every birthday (starting with his 66th) up to and including his 85th birthday. He believes that an interest rate of 10% per year is reasonable. How much does he need to put aside each birthday?
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- Bilbo plans to retire in 25 years (t=25) from today and to save $4,000 per month until his retirement with the first saving starting from today (t=0). He expects to have $2,000 monthly expense starting from the first month after year 25 (t=25) through year 50 (t=50). He also wants to leave an amount of inheritance to his son Frodo at year 50 (t=50). The discount rate for Bilbo’s entire life is 6% (APR). Suppose Bilbo strictly follows his financial plan, a) how much savings would Bilbo have in year 25 (t=25)? b) how much at most would Bilbo’s inheritance be in year 50 (t=50)? no excel pleaseCecilia 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.house's first contribution is made one year from today and his last is made the day he mo p00,000 per year. II Mil- retires, how much money must he contribute each year to his retirement fund? (Solving a comprehensive problem) Having just inherited a large sum of money, you are trying to determine how much you should save for retirement and how much you can spend now. For retirement, you will deposit today (January 1, 2016) a lump sum in a bank account paying 10 percent compounded annually: You don't plan on touching this deposit until you retire in five years (January 1, 2021), and you plan on living for 20 additional years. During your retirement, you would like to receive a payment of $50,000 on the first day of each year, with the first payment on Janu- ary 1, 2021, and the last payment on January 1, 2041(Complicating this objective is desire to have one final three-year fling during which time you'd like to track your down all the original cast members of Hey Dude and Saved by the…
- John is nearing retirement and is considering an annuity offer from New York Insurance Corp, which promises to pay him $30,000 on the last day of each year, for 20 years. If John believes that he could earn 5% if he invested his money himself, the present value (rounded to the nearest whole dollar) to John of this offer is:Isabelle wants to save for retirement. She earns $5400 in income each month, and wishes to deposit 10% of her income into a savings acount each month. If the savings account has a nominal interest rate of 7%, compounded monthly, how much will be in the account if she retires in 35 years? John won a lottery. After taxes, he was able to take home his winnings worth $510000. He decides to deposit 20% of this in a separate savings account for retirement. If the savings account has a nominal interest rate of 7%, compounded monthly, how much will be in the account if he retires in 35 years?Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25 years after he retires - that is, until age 85. He wants his first retirement payment to have the same purchasing power at the time he retires as $40,000 has today. He wants all of his subsequent retirement payments to be equal to his first retirement payment. (Do not let the retirement payments grow with inflation: Your father realizes that if inflation occurs the real value of his retirement income will decline year by year after he retires). His retirement income will begin the day he retires, 10 years from today, and he will then receive 24 additional annual payments. Inflation is expected to be 6% per year from today forward. He currently has $125,000 saved and expects to earn a return on his savings of 9% per year with annual compounding. To the nearest dollar, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning…
- 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:lirme lefr Hanan is 55 years old now and she plans to retire at the age of 60 years old, 5 years from now. He wishes to receive $30,000 at the end of each year for 10 years after the age of 60. Hanan plans to move to a retirement home once she is 70 years old and she is not concerned with any cash flow atter the age of 70. Assume a 10% rate of return/discount rate throughout this question. How large a fund will Hanan need when she retires in 5 years (at age 60) to provide the 10-year, $30,000 retirement annuity? Choose. How much money should Hanan have today (at age 55) as a single amount to provide the 10-year, $30,000 retirement annuity? Choose. At what age Hanan should have invested $10,000 in order to achieve her retirement goal? ( assume a 10% rate of return) Choose.Mr Trump is 40 years old and will retire at age 65. He will receive retirement benefits but the benefits are not going to be enough to make a comfortable retirement life for him. Trump has estimated that an additional $20,000 a year over his retirement benefits will allow him to have a satisfactory life. How much should Trump deposit today in an account paying 6 percent interest to meet his goal? Assume Trump will have 15 years of retirement. (Do not use excel for computation)
- William North has just inherited $895,000 which he would like to use as part of his retirement nest egg. He invested the funds at a 6.28 percent annual rate compounded annually. William will reach age sixty in 10 years and will retire early. Now he would like to know how much he could withdraw from the fund in equal installments at the end of each year from the year he reaches age 60 until he reaches age 70¹2, the year he must start withdrawing funds from his individual retirement account (IRA). William assumes the funds will continue to earn at a 6.28 percent annual rate. In other words, William would like to know the annual year-end payment from an eleven-year annuity (from age 60 to the year he will be 70¹2), earning 6.28 percent annually. Round the answer to two decimal places.When Joe graduated from college at age 22, his grandparents established a trust fund and endowed it with $10,000. The gift is intended to serve as a retirement fund for Joe, and he will be able to draw on it when he turns 62. If the fund earns a nine percent return over that period, what will it be worth when Joe reaches age 62? [submit your answer with a comma but no dollar signs]James invests $20,000 on his 25th birthday and plans to add $2,000 to his investment each year until his 40th birthday. The interest rate is 5.5% compounded annually. a) What will be the value of Clark's investment on his 40th birthday? b) How much will his investment have earned by his 40th birthday?
