QUESTION 5 Carl plans to retire in 4 years with $519,000.00 in his account. If he receives payments of $114,705.29 per year and he receives his first $114,705.29 payment in 4 years and his last $114,705.29 payment in 8 years, then what is the expected annual return for his account? O 12.91% (plus or minus 1 bps) O 3.43% (plus or minus 1 bps) O 5.26% (plus or minus 1 bps) O 8.71% (plus or minus 1 bps) O none of the answers are within 1 bps of the correct answer

QUESTION 5 Carl plans to retire in 4 years with $519,000.00 in his account. If he receives payments of $114,705.29 per year and he receives his first $114,705.29 payment in 4 years and his last $114,705.29 payment in 8 years, then what is the expected annual return for his account? O 12.91% (plus or minus 1 bps) O 3.43% (plus or minus 1 bps) O 5.26% (plus or minus 1 bps) O 8.71% (plus or minus 1 bps) O none of the answers are within 1 bps of the correct answer

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 2You plan to retire 33 years from now. You expect that you will live 27 years after retiring. You want to have enough money upon reaching retirement age to withdraw $180,000 from the account at the beginning of each year you expect to live, and yet still have $2,500,000 left in the account at the time of your expected death (60 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 33 years. You expect that you will be able to earn 12% per year on your deposits. However, you only expect to earn 6% per year on your investment after you retire since you will choose to place the money in less risky investments.Required:Calculate the equal annual deposits you must make each year to reach your retirement goal.
rmn.2
2 1 John wants to retire at the age of 65 years, he is 43 years old now and wants to retire with a savings of $5,000,000. Currently, the savings plan pays 8% interest rate. What is the annual savings that John needs to make each year till he retires to get savings worth $5,000,000? C
How do you solve this on TI 84 Future Value of Multiple Annuities Assume that you contribute $110 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $210 per month for another 20 years. Given a 6.5 percent interest rate, what is the value of your retirement plan after 40 years?
PART 1 Rajesh and Priya plan to retire at age 60 with a retirement income of $48,000 a year from their savings. Rather than pay themselves the whole amount at the beginning of each year, they have decided that withdrawing payments of $12,000 at the beginning of each quarter of gives them the right balance of liquidity and maximized interest earnings. They feel they can safely earn an interest rate of 5.75%, compounded quarterly, on their money and they are budgeting based on the prediction that they will live until they are 90 years old. How much money will they have to have saved by the time they are 60 and ready to begin their retirement, in order fulfill this plan? If the same total calculated above was to be saved, but no interest earned whatsoever, how much would be available to live on each quarter? If the full 30 years are lived and quarterly budget spent, how much money in total will have been utilized in retirement? How much will have been earned in interest? PART 2…
Y8 A person is planning for their future retirement and wishes to have a 10 year pension of 50,000$ per year to her descendants forever. Assuming 5% interest rate how much money they need in their savings account when their retirement starts in 20 years
H5. Show all calculation
Question #4: Suppose you have just started 21st year of your life, you plan to retire at the end of age 65, and you expect to live until the end of 90 (working for 45 full years and being retired for 25 years). You currently have a constant earning of $50,000 per year (paid at the end of the year). The plan is to save 10% of your income each year to meet your retirement needs. Assume the valuation rate of 7%. Part A: If you want to keep a constant level of consumption during your retirement, how much you can consume per year when you are retired? Part B: Imagine you decide to save 20% of your salary. How many years earlier you can retire having the same level of consumption as Part A during your retirement?Hint: (1+?)?−90=(1+?)?−20(1+?)70=(1+?)?(1+?)90
Question 6
Question 20 Ashley turned 30 today, and she is planning to save $3,000 per year for retirement, with the fest deposit to be made one year from today. She will invest in a mutual fund, which she expects to provide a return of 1.30% per year throughout her lifetime. She plans to retire 35 years from today, when she turns 65, and she expects to live for 30 years after retirement, to age 95. Under these assumptions, how much can she spend in each year after she retires? Her first withdrawal will be made at the end of her first retirement year, and she plans on leaving no money to her hers Your answer should be between 28,000.00 and 95,225.00, rounded to 2 decimal places, with no special characters.
Example 3 3 Maude decides to invest in a 25-year private pension scheme, where she will have to deposit TRY1000 at the start of cach month. The rate of interest is fixed at 8% per annum. Interest is compounded monthly. 1 Determine the future value investment at the end of the 25 years. After the 25-year period, when she will have retired, she will receive (according to the pension scheme) a monthly pension of TRY1200. b Explain why the investment fund will never run out of money. her Students, draw anywhere on this silidel ide
#45 Retirement savings A couple thinking about retirement decides to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years, they will receive a gift of $10,000 that also can be invested. a. How much money will they have accumulated 30 years from now?b. If the goal is to retire with $800,000 savings, how much extra do they need to save every year?

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