Question 4Mr Johnson has just retired at 65 with a defined contribution pension pot £125,000. He is asmoker and has chosen not to drawdown anything from the pot. Mr Johnson is not concernedwith inflation. From the following available annuities, what would be Mr Johnson's annualpension?AgeLevel RateSmoker Level RateSmoker 3% Escalation55£4,402£5,271£3,50260f4,836£5,770£4,03665£5,506f6,403£4,80570£6,306£7,443£5,75475£7,852£8,848£7,185All annuities have been calculated on a pension pot of £100,000.AnswerAnnual PensionA£6,003Вf6,006£6,883£8,004

The concept of perpetuity is an annuity with never-ending payments of a fixed present value and…

Question 4 Mr Johnson has just retired at 65 with a defined contribution pension pot £125,000. He is a smoker and has chosen not to drawdown anything from the pot. Mr Johnson is not concerned with inflation. From the following available annuities, what would be Mr Johnson's annual pension? Age 55 60 65 Smoker Level Rate £5,271 £4,836 £5,770 £5,506 £6,403 70 £6,306 £7,443 75 £7,852 £8,848 All annuities have been calculated on a pension pot of £100,000. Annual Pension £6,003 £6,006 £6,883 £8,004 Answer A B с Level Rate £4,402 D Smoker 3% Escalation £3,502 £4,036 £4,805 £5,754 £7,185

Question 4 Mr Johnson has just retired at 65 with a defined contribution pension pot £125,000. He is a smoker and has chosen not to drawdown anything from the pot. Mr Johnson is not concerned with inflation. From the following available annuities, what would be Mr Johnson's annual pension? Age 55 60 65 Smoker Level Rate £5,271 £4,836 £5,770 £5,506 £6,403 70 £6,306 £7,443 75 £7,852 £8,848 All annuities have been calculated on a pension pot of £100,000. Annual Pension £6,003 £6,006 £6,883 £8,004 Answer A B с Level Rate £4,402 D Smoker 3% Escalation £3,502 £4,036 £4,805 £5,754 £7,185

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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Question 2 Leslie, age 27, is an employee of Naples Corp. which provides the following nondiscriminatory fringe benefits received in 2021: insurance premiums of $1,050 for salary continuation payments. Under the plan, Leslie will receive her regular salary in the event she is unable to work due to illness. Leslie collected $7,100 on the policy to replace lost wages while she was ill during the year. • $5,500 tuition under a plan available to all full-time employees. Leslie is a part-time student working on her bachelor's degree in accounting. • hospitalization insurance premiums for Leslie and family. The cost of the coverage for Leslie is $3,000 per year, and the additional cost for dependents is $3,775 per year. The plan has a $2,000 deductible, but Naples contributed $1,500 to the Health Savings Account (HSA). Leslie withdrew only $1,000 from the HSA, and the account earned $6.92 interest during the year. For each of the following, what is the amount to be included in Leslie's gross…
Interview Notes • Carmen, age 61, is single. She owns her home and provided all the costs of keeping up her home for the entire year. Her only income for 2023 was $48,000 in W-2 wages. . . Abigail, age 24, and her daughter Andrea, age 4, moved in with Abigail's mother, Carmen, after she separated from her spouse in April of 2021. Abigail's only income for 2023 was $25,000 in wages. Abigail provided over half of her own support. Andrea did not provide more than half of her own support. Abigail will not file a joint return with her spouse. • All individuals in the household are U.S. citizens with valid Social Security numbers. No one has a disability. They lived in the United States all year. Advanced Scenario 4: Test Questions 9. For the purpose of determining dependency, Andrea could be the qualifying child of a. Only Carmen b. Only Abigail c. Either Carmen or Abigail d. Neither Carmen nor Abigail 10. Abigail is eligible to claim Andrea for the earned income credit. a. True b. False
15 Under the NBA deferred compensation plan, payments made at the end of each year accumulate up to retirement and then retirees are given two options. Option 1 allows the retiree to select the amount of the annual payment to be received, and option 2 allows the retiree to specify over how many years payments are to be received. Assume Hardaway has had $8,000 deposited at the end of each year for 30 years, and that the long-term interest rate has been 7%. Required: How much has accumulated in Hardaway’s deferred compensation account? How much will Hardaway be able to withdraw at the beginning of each year if he elects to receive payments for 16 years? How many years will Hardaway be able to receive payments if he chooses to receive $85,000 per year at the beginning of each year?
Mark, who is single, must start making distributions from his pension plan beginning April 1, 2022. At the end of 2020, when Mark was 71 years old, the plan had a balance of $220,000. He will use a single life expectancy. What amount must Mark take as a distribution from the pension plan no later than April 1, 2022? Use Table I, Table III, and Table V. Multiple Choice $8.907 $8,594 $14,193 $8,302 220000 16.3 X = 13496.9325153 X
40. Jim has earned an average of $3,290 per month over his lifetime. He is planning to retire at 66, the full retirement age for his year of birth. Using the formula of calculating Social Security as 90% of earnings of the first $680 and 32% of earnings over $680. calculate Paul's monthly retirement benefit. A. $1,052.80 B. $2,961.00 C. $1,447.20 D. $3,655.56
You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 10.85 percent and make no additional contributions. a. What will your account be worth when you retire in 43 years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What if you wait 10 years before contributing? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Account value if you start now b. Account value if you wait 10 years
Marie wants to provide retirement income for her dependent parents for 35 years should she die. Marie earns $67,500 and feels that her parents could live on 65% of that amount. If the insurance funds could be invested at 5%, how much life insurance does she purchase using the desired income method? Group of answer choices $1,273,499 $1,450,087 $932,743 $877,500
In 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 27 and make a deposit of this amount into an account at the end of each year. How much would you have (to the nearest dollar) when you retire if the account pays 2% compounded annually and you retire at age 65?_____$
#7 Sam is currently 30 years of age. He owns his own business and wants to retire at the age of 60. He has little confidence in the Social Security system. He wants to retire with an annual income of $72,000. a. If Sam believes he will live to age 90, how much does he have to accumulate by the time he reaches age 60 to receive $72,000 at the end of each year for the rest of his life? Sam believes he can earn 8 percent on his money in a stock mutual fund. b. How much does he have to accumulate if he wants the payment of $72,000 at the beginning of each year?
Question 6 Elizabeth works for Picasso Paint Supplies. Her annual salary is $72,580. What is Elizabeth's annual Medicare deduction?
You have just made your first $5686 contribution to your retirement account. Assume you earn a return of 11.5 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Emily’s employer offers a pension plan that calculates the annual pension as the product of the final average salary, the number of years of service, and a 2% multiplier. Her employer uses a graded 5-year vesting formula as shown. After 4 years, Emily leaves her job. Her average salary was $65,000. How much pension will she receive? Years Employed Vesting Percentage 0 0% 1 0% 2 25% 3 50% 4 75% 5 100%

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