Ivan is 37 years old and works for an IT company earning a monthly after-tax salaryof $9,000. He plans to retire in exactly 28 years. To save for retirement he isconsidering investing an initial lump sum of $100,000. He will also invest 30% of hismonthly salary at the end of each month. These investments are expected to earn6.3% per year, compounded annually. At retirement he plans to buy a 30-yearannuity that makes one payment at the start of each year. Assuming that thediscount rate on this annuity is 4.0% per annum compounded annually, how muchwill Ivan receive each year on this annual annuity?

Today money=$100000Salary=$9000Investment=30%Period=n=28yearsInterest rate=r=4%

Ivan is 37 years old and works for an IT company earning of $9,000. He plans to retire in exactly 28 years. To save for retirement he is considering investing an initial lump sum of $100,000. He will also invest 30% of his monthly salary at the end of each month. These investments are expected to earn .3% per year, compounded annually. At retirement he plans to buy a 30-year nuity that makes one payment at the start of each year. Assuming that the scount rate on this annuity is 4.0% per annum compounded annually, how much Il Ivan receive each year on this annual annuity?

Ivan is 37 years old and works for an IT company earning of $9,000. He plans to retire in exactly 28 years. To save for retirement he is considering investing an initial lump sum of $100,000. He will also invest 30% of his monthly salary at the end of each month. These investments are expected to earn .3% per year, compounded annually. At retirement he plans to buy a 30-year nuity that makes one payment at the start of each year. Assuming that the scount rate on this annuity is 4.0% per annum compounded annually, how much Il Ivan receive each year on this annual annuity?

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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