Problem 2Assume that Steven is 28 years old, works as a lawyer and plans to retire at the age of 55. He isthinking of depositing each month while he works as a lawyer and expects an APR of 7.5% onhis investments during these years before the retirement. Starting with the end of the first monthof the retirement period Steven wants to withdraw $1100 each month till the age of 80. For thisreason Steven plans to deposit his money accumulated by the time of retirement in one of thefinancial institutions at 4.8%. How much does he needs to save while working as a lawyer if heputs money away monthly in equal end-of-the-month amounts?

The savings that he needs to do while working as a lawyer if he puts money away monthly in equal…

Answered: Problem 2 Assume that Steven is 28…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If Mr. X wants to retire at an age of 56 and he wants to accumulate in his bank account at that time TK 1,00,00,000 at the end of 56th year what amount should be deposited each year on a semiannual basis in the bank account to gain that money if the bank gives a rate of 8% on deposits? He is 25 year old now
Ira Roth opens up a Roth IRA and places $4,500 in his retirement account at the beginning of each year for 20 years. He believes the account will earn 8 percent interest per year, compounded quarterly. How much will he have in his retirement account in 20 years?
Part B Troy begins saving for his retirement at age 30. He deposits an annual sum of $25,000 each year until the age of 60. The money earns a rate of interest of 5.25%. Required: Calculate the value of his investment at age 60.
ames is starting to take his financial future seriously after studying finance at university. He is currently 25 years of age and wishes to retire from full-time work at the age of 55 with $2 000 000 in savings. b) How much will James need to contribute at the start of each month in order to receive $2 000 000 in 30 years’ time at a compound interest rate of 7.25% p.a.? Show formula, variables, calculation and a concluding statement in your response.
Imagine you are helping a client, Jill Pole, prepare for retirement Jill would like to withdraw $14,411 from her retirement fund exactly one month after she quits her job. Jill would like all subsequent monthly withdrawals to grow at an effective annual rate of 2.5%. Further, Jill would like to have her funds invested to earn an effective annual return of 7.7%. Jill expects to live for 26 years once she retires and does not plan to leave an inheritance. How much does Jill need to have in her retirement account on the day she retires in order to fund this stream of growing monthly distributions from her retirement account?.
Condiser Donald and Joe who are both 30 years of age and recently graduated with a degree in Finance. Both Donal and Joe plan to retire at age 67 and the retirement plan pays a 12% per annum return and is also compounded monthly. Donald plans to invest $1,000 per month beginning next month into his retirement account while Joe shall invest $2,000 per month. However Joe does not plan to begin investing until 10 years after Donald begins to invest. How much willeach of the newly grads have at retirement?
Please correct answer and don't use hend raiting
Donald is updating his estate plan for himself and his family. He would like to provide an income of $3000 every month starting 10.5 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in 5 years, will have a cash value of $150,000. To make up the difference, Donald has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6 percent compounded monthly?
Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The account earns an annual interest rate of 1.4%. After the final deposit, they move the accumulated savings to a brokerage account and invest in the stock market, where they earn an average annual return of 6.9% for the following 16 years. How much will they have in the account at the end? O a. $131,280 O b. $404,155 O c. $137,311 O d. $296,336 e. $302,138 f. $279,603 g. $496,270 h. $249,511
Assume that Steven is 28 years old, works as a lawyer and plans to retire at the age of 55. He is thinking of depositing each month while he works as a lawyer and expects an APR of 7.5% on his investments during these years before the retirement. Starting with the end of the first month of the retirement period Steven wants to withdraw $1100 each month till the age of 80. For this reason Steven plans to deposit his money accumulated by the time of retirement in one of the financial institutions at 4.8%. How much does he needs to save while working as a lawyer if he puts money away monthly in equal end-of-the-month amounts?
None

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