Lisa plans to retire on her 61st birthday. On her 22nd birthday, Lisa will start saving $A per year for 40 years. Starting on her 62nd birthday, Lisa plans onwithdrawing $10,000 and will continue these annual withdrawals until the account is exhausted on her 85th birthday. If Lisa’s bank account pays 3% per year, what annual amount of $A will Lisa need to invest in her bank account to achieve her retirement goal?

Q: Mr. White is planning his retirement. He has decided that he needs to withdraw 600,000 per year from…

A: Here the annual withdrawals are in the form of annuity where the periodic amount (P) is 600,000;…

Q: Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6…

A: Since Gabriela wants to withdraw a specific amount after a certain period of time, thus, it is…

Q: subsequent year until your 85th birthday. On that birthday you want to give $1,000,000 to your…

A: The time value of money acknowledges that, because of prospective earning potential, inflation, and…

Q: Your friend waited until her 40th birthday to begin saving for retirement. She places $2,400 per…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: Marilyn wishes to retire at age 65 with $2,000,000 in the bank. At the age 21, she decides to begin…

A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

Q: Your parents start saving for your sister's college education. She will begin college at age 18 and…

A: Present value and future value is computed by discounting or compounding an amount. Future value is…

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: Mary just turned 31 years old today and she is saving for her retirement. This is her plan. She will…

A:

Q: fter retiring, Sofía wants to be able to withdraw $8,500.00 every quarter from her account for 33…

A: There is need of proper planning for retirement and if you do that properly than you can achieve…

Q: expects to retire in 30 years. She has decided that she would like to retire with enough money in…

A: The present value of money to be received in the future would give the amount of retirement money…

Q: Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest…

A: Step 1 An inflow or outflow amount that happens at each period of a financial stream is known as a…

Q: b. Jamie wants to have $2,000,000 for her retirement in 25 years. How much should she save annually…

A: An annuity is a set of equal payments made at a set rate over a predetermined amount of time.…

Q: Currently, Ally Gator has saved $15,000 in her retirement account. Ally plans on saving $6000…

A: Initial amount = $ 15000Annual deposit = $ 6000Number of years = 35Rate during working years=…

Q: The parents of a newborn decide to make deposits into an educational savings account on each of…

A: It is a case where the parents of a daughter want to calculate the present value of an alternative…

Q: Maria, a 25-year-old teacher, wants to start saving for her retirement. Maria wants a comfortable…

A: GIVEN, Age of Maria = 25  retirement age = 65 therefore number of years of savings = 65- 25 = 40…

Q: Sousan wants to save money for her retirement.  She plans on putting $200 into an Annuity each…

A: Formula:

Q: Ms. Ieda Silva plans to retire in 28 years and expects to live for 25 years after retirement. She is…

A: we can use discounting techniques to value the monthly deposits.

Q: Rachel starts an IRA (Individual Retirement Account) at the age of 26 to save for retirement. She…

A: Compound interest is a financial concept that involves the addition of interest not just on the…

Q: This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving…

A: The annuity formula can be used to calculate present value of all withdrawals at the time of…

Q: A couple is saving for retirement with three different accounts. The table below shows the current…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment. It is…

Q: A man wants to set up a 529 college savings account for his granddaughter. How much would he need to…

A: Annual Deposit is that amount which is required to deposit by investor every year for receiving the…

Q: Boatright wants to withdraw $2000 from an account at the end of year 1, $4000 at the end of year 2,…

A: Today value required in account is the present value of the future payments based on the time and…

Q: John and Denise are partners at a law firm. They have decided to set aside a fund for their loyal…

A: Compound = Monthly = 12Time = t = 10 * 12 = 120John Payment = jp = $100Interest Rate = r = 10 / 12 %

Q: my is now (year 0) 25 years old and planning for her retirement at age 65. She would like to have $2…

A: Real future value required=$1015041.55707 Inflation=2.82%Growth rate=2.82%Period =40 yearsNominal…

Q: You are 40 years old and want to retire at age 60. Each year, starting one year from now, you will…

A: An annuity is a financial product or contract that provides a series of regular payments to an…

Q: Emily is trying to decide between investing $1,000 or $1,500 at the beginning of each year for the…

A: Future value of money is the amount of deposit done and the amount of compounded interest…

Q: our friend has just celebrated her 30th birthday and accepted her first job. She must now decide how…

A: Your friend is undertaking her retirement planning. She has crystallized the annuity required in her…

Q: You are trying to calculate how much money you should have at retirement. On your 55th birthday you…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…

A: We need to calculate the persent value of annuity  by using this formula.    PV of annuity =CF*…

Q: Amanda wants to take the next four years off work to travel around the world. She estimates her…

A: Requirement 1: Funding Travels with 12% InterestSince Amanda's savings earn interest, we can't…

Q: ylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Ann would like to have $20,000 saved in 7 years from today and can earn 3.8% on deposits. She plans…

A: we will find future value of each deposits and sum of all future values shall be equal to 20000

Q: You’ve landed your first job after graduation. Although retirement may seem like a long way off, you…

A: contribution =$7000 per year  interest rate =6% Period =35 Future value FACTOR =(1+r)n-1/r…

Q: A couple is saving for retirement with three different accounts. The table below shows the current…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment. It is…

Q: Sandra wants to take the next six years off work to travel around the world. She estimates her…

A: The annuity's Present worth is the current lump sum amount that an investor will require for making…

Q: compounded monthly, how much will be in the account if she retires in 35 years?

A: A retirement plan includes a deposit of a certain sum regularly over a period of time. This creates…

Q: A couple is saving for retirement with three different accounts. The table below shows the current…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment. It is…

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.