In 35 years, John is planning on retiring. In general, what type of financial instrument should he starts investing at this time? Why?
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Q: Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he…
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Q: how much will John have in his retirement account at age 60?
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Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25…
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A: To find out the interest rate Gary needs to earn to achieve his goal, we can use the formula for…
Q: Gary wants to save $555,000 in 5 years, he currently has $225,000 in an investment. Due to…
A: The objective of the question is to find out the interest rate Gary needs to earn on his current…
Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25…
A: Annual savings refers to an amount that is saved at a specified rate of interest for the purpose of…
Q: Despite his relative youth, Samuel Hunter has started planning for his retirement. At present, he…
A: Given: Annual investment = $6100 Period, n = 40 years Interest rate, r = 4% a. The accumulated…
Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25…
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Q: Assume that your father is now 50 years old, that he plans to retire in 10 years, and that he…
A: First Retirement Payment having same purchasing power = 50000 He will receive his 1st retirement…
Q: Tony is now 65 years old, and has no property. He has $6 million in a saving account, and is now…
A: Annuity plan/Guaranteed Income Plan - An annuity plan means that the person after putting the…
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Q: How much money are Dean's investments worth at the end of 41 years?
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Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25…
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A: Inflation can be defined as the rise in general price level in an economy. When inflation is there,…
Q: putation)
A: given, A=$20,000 N=15 R=6%
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Q: Your father is 50 years old and will retire in 10 years. Heexpects to live for 25 years after he…
A: An Annuity is a stream of regular periodic payments made or received for a specified period of time…
Q: You have decided that you want to be a millionaire when you retire in 45 years. a. If you can…
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Q: Louis is 29 years old today. He is a conservative person, and is thinking about his retirement when…
A: Payment = p = $8000Number of Payment = n = 20Rate of Return = r = 7.7%Time after final Payment = t =…
Q: You are making plans for your retirement. You have just turned 30 and want to retire on your 65th…
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- Charles wants to retire in 18 years. At that time he wants to be able to withdraw $22,000 at the end of each year for 18 years. Assume that money can be deposited at 6% per year compounded annually. What exact amount will Charles need to deposit today to have enough to cover his retirement? Show the use of the appropriate formula by indicating the use of the information into the formula.20Assume 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 $50,000 has today. He wants all 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 4% per year from today forward. He currently has $75,000 saved and expects to earn a return on his savings of 10% per year with annual compounding. How much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to…
- Your sister turned 35 today, and she is planning to save $60,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires? Her first withdrawal will be made at the end of her first retirement year. a. $266,770.46 b. $556,561.79 c. $598,303.93 d. $517,731.90 e. $248,158.57Assume that you are 20 years old and started saving for retirement on January 1, 2022. You plan to retire on December 31, 2071, when you are 70 years old. There are 50 years from the time you started investing (saving) until you retire. You have no previous or other retirement savings when you start to save. Assume there are 365 days and 52 weeks in each year from 2022 to 2071. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings. You invest $300 at the end of each month into a retirement account paying 7% compounded monthly from January 1, 2022, until you retire. Show all work and answer the following questions: 1. Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 50 years? 2. Assuming you made all the monthly payments for 50 years, how much did you pay into your retirement account? 3. Assuming you made all the monthly payments for 50 years, how much interest did you earn over the 50…Assume that you are 22 years old and are started saving for retirement on January 1, 2022. You plan to retire on December 31, 2068, when you are 68 years old. There are 47 years from the time you started investing (saving) until you retire. You have no previous or other retirement savings when you start to save. Assume there are 365 days and 52 weeks in each year from 2022 to 2068. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings. You invest $50 at the end of each week into a retirement account paying 8.5% compounded weekly for 12 years starting on January 1, 2022. After 12 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions: Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 12 years? After 12 years, how many years are left until you retire? Assuming you made all…
- 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.) Investmenta) When you retire 40 years from now, you want to have $1.2 million. You think you can earn an average of 12 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit? b) Some time ago, Julie purchased eleven acres of land costing $36,900. Today, that land is valued at $214,800. How long has she owned this land if the price of the land has been increasing at 10.5 percent per year?Marco is 45 years old and plans to retire at age 66. He wants you to assume he will be retired for 18 years before he dies. Assume Marco needs $50,504 at the beginning of the first year of retirement. Use an investment return of 7 percent and an inflation assumption of 3 percent. What amount of money will he need to have saved at the beginning of retirement? (Round any interest rate calculations to 4 decimal places e.g. .0125 for 1.25% and round the final answer to 2 decimal places)
- . You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. Once retired, you plan to move to a tax-free Caribbean state, where you believe you can live comfortably on your retirement savings. You plan to make your first withdrawal from your retirement savings when you retire at age 65 and your last withdrawal one month before your 85th birthday. Based on family history, you expect to live until exactly age 85. Your plan is to have a total of $1 million when you retire. Your current salary is $36,000 per year, or $3,000 per month. Your personal tax rate is approximately 30%. You estimate that you can earn an average return of 12% APR compounded annually on any money you invest over the next 60 years. You want to start putting aside a fixed amount of money at the end of every month until your retirement at age 65. You will make your first deposit one month from now and your last deposit on your 65th birthday. To ensure that you are…Joe wants to own a home in the future. He asks you describe an advantages and disadvantage of a FRM versus an ARM. He then asks you to describe the advantages and disadvantages of a 15-year loan versus a 30-year loan. He also wants to know how the portion of the home payment that comprises interest changes over the years assuming he takes out an FRM. Is there anything he can do to reduce the total amount he’ll pay for the home? What else would be added to his monthly mortgage payment? What are three benefits of home ownership? What are three benefits of renting?7). Kevin is 25 years old and just finished taking a Personal Finance class. He wants to start a investment plan with a goal of reaching $1,000,000 by the time he is 55 years old. He decides to invest in a Real Estate Investment Mutual Fund that has paid a dividend yield of 12% for the past several years. If Kevin wanted to make ONE investment at age 25 and let it grow, how much would he need today to reach that goal? If Kevin decides that he wants to invest in the Real Estate Investment Fund in equal monthly payments every year, how much will he have to invest on a monthly basis?
