Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 1980, of 2400 dollars into an account that pays an effective rate of interest of 9.8 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.4 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal? Answer = dollars.

Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 1980, of 2400 dollars into an account that pays an effective rate of interest of 9.8 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.4 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal? Answer = dollars.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 71.80. 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 71.8 when he fully retires, he will begin to make annual withdrawals of $175, 038.33 from his retirement account until he turns 93.00. 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 6.53% interest rate.
Joel makes regular (end of term) deposits into his RRSP (Registered Retirement Savings Plan) that will be converted into an RRIF (Registered Retirement Income Fund) 20 years from now. During retirement Joel would like to receive $5,400 at the end of every six months for 22 years. If interest is 3.28% compounded semi-annually (for both the RRSP and RRIF). Answer the following questions, and round all answers to two decimal places where necessary. 1) How much money should Joel have in his RRIF to receive payments of $5,400 at the end of every six months? P/Y= PV = $ esc P/Y = PV = $ Submit Question 1 2) What payment will Joel have to make at the end of every six months into his RRSP so that there is enough money in his RRIF at the start of his retirement? Q A N C/Y= FI PMT= $ C/Y= PMT= $ 2 W S * X #3 80 F3 E N= D N= FV = $ FV = $ $ 4 Q F4 R LL I/Y = F I/Y = do 5 % T G 6 % % F6 Y & 7 H F7 U 00 * 8 DII FB ( 09 O
Jane makes regular (end of term) deposits into her RRSP (Registered Retirement Savings Plan) that will be converted into an RRIF (Registered Retirement Income Fund) 27 years from now. During retirement Jane would like to receive $5,200 at the end of every three months for 22 years. If interest is 4.52% compounded quarterly (for both the RRSP and RRIF). Answer the following questions, and round all answers to two decimal places where necessary.1) How much money should Jane have in her RRIF to receive payments of $5,200 at the end of every three months?P/Y = Incorrect C/Y = N = Incorrect I/Y = Correct%PV = $Incorrect PMT = $Incorrect FV = $2) What payment will Jane have to make at the end of every three months into her RRSP so that there is enough money in her RRIF at the start of her retirement?P/Y = C/Y = N = I/Y = %PV = $ PMT = $ FV = $ Submit QuestionQuestion 3
Please show every step please and thankyou
Derek can deposit $19,305.00 on each birthday beginning with his 26.00th and ending with his 69.00th. What will the rate on the retirement account need to be for him to have $3,825,432.00 in it when he retires?
To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine years after, he deposited another 10,000. How much will be available at his retirement? *
Mr. Reyes wants to retire 15 years from now. Aside from the retirement benefits from his company and the social security benefits that he will get, Mr. Reyes wants to have an additional 2 million pesos when he retires. To achieve this goal, he will make equal annual deposit at the end of each year for the next 15 years in an account that earns 5% interest per annum. How much should Mr. Reyes deposit each year?
Adele is planning for retirement. She would like to have $75,000 in her hand at the beginning of her first year of retirement at age 65 to live on for the year. She estimates that the amount will have to grow by 6% every year to keep up with inflation. What APR (nominal rate per year) should her retirement account earn if it is compounded continuously? She plans to deposit $21,000 on her 40th birthday and plans to keep increasing the deposits by 6% every year and till her 64th birthday. She estimates her life expectancy to be 85, meaning she would like to have the last retirement payment on her 85th birthday.
When she turned 30, Arwen started depositing $400 per month in a retirement account that earns 2.4% interest compounded monthly. If she plans to retire when the account contains $200,000, how old will she be when she retires.
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:
“Sunrise Industries wishes to accumulate funds to provide a retirement annuity for its vice president of research, Jill Moran. Ms. Moran, by contract, will retire at the end of exactly 12 years. Upon retirement, she is entitled to receive an annual end-of-year payment of $42,000 for exactly 20 years. If she dies prior to the end of the 20-year period, the annual payments will pass to her heirs. During the 12-year “accumulation period,” Sunrise wishes to fund the annuity by making equal, annual, end-of-year deposits into an account earning 9% interest. Once the 20-year “distribution period” begins, Sunrise plans to move the accumulated monies to an account earning a guaranteed 12% per year. At the end of the distribution period, the account balance will equal zero. Note that the first deposit will be made at the end of year 1 and that first distribution payment will be received at the end of year 13.TO DOa. How large a sum must Sunrise accumulate by the end…
Chip and Karla are parents of a young child. They expect their child to attend college exactly 13 years from today, and they wish to have accumulated the amount of $124000 when their child reaches college. In order to meet their goal, they will begin making MONTHLY contributions to a special account devoted to the retirement goal. Contributions to this account will begin one month from today, and will continue placing equal monthly amounts into her retirement account for the next 13 years. What minimum amount needs to be placed in the college savings account at the end of each month so that they will reach their goal if the annual interest rate is 4.80%. $

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