! Required information Assume that 25 years ago your dad invested $360,000, plus $30,000 in years 2 through 5, and $46,000 per year from year 6 on. Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $46,000 annuity stopped at year 25. The interest rate being 15% per year. The annual retirement amount is determined to be $

! Required information Assume that 25 years ago your dad invested $360,000, plus $30,000 in years 2 through 5, and $46,000 per year from year 6 on. Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $46,000 annuity stopped at year 25. The interest rate being 15% per year. The annual retirement amount is determined to be $

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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Required information Assume that 25 years ago your dad invested $360,000, plus $31,000 in years 2 through 5, and $46,000 per year from year 6 on. Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $46,000 annuity stopped at year 25. The interest rate being 14% per year. The annual retirement amount is determined to be $
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(Future value of an annuity) Upon graduating from college 40 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a monthly basis in the amount of $100. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 7 percent compounded monthly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick accumulated in his retirement account? b. In addition to this, 20 years ago Nick received an inheritance check for $15,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund? a. The amount Nick has accumulated in his retirement account is $. (Round to the nearest cent.)
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Excel Online Structured Activity: Required annuity payments Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $60,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 3%. He currently has $160,000 saved, and he expects to earn 7% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do not round your intermediate calculations. Round your answer to the nearest…
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Excel Online Structured Activity: Required annuity payments Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $40,000 has today. (The real value of his retirement income will decine annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 6%. He currently has $245,000 saved, and he expects to earn 8% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do not round your intermediate calculations. Round your answer to the nearest cent.…
Questions:- John wishes to create his own life annuity plan. He expects to retire at age 60. He plans to deposit a fixed amount of money in a retirement account each year starting from age 30. Assume all amounts are deposited or withdrawn at the end of the year. Suppose the account can earn an annual rate of 5%. 1. (a) If John wants to withdraw $120,000 each year starting from age 60 for the next 20 years, calculate the amount that should be accumulated in the retirement account at age 60. (7%) (b) Calculate the fixed amount of money that John requires to deposit per year for 30 years, starting from age 30 to accumulate the amount (8%) calculated in part (a). (c) In the past 5 years, Industrial and Commercial Bank of China (ICBC) has offered a stable dividend distribution of HK$0.26 per share each year. What is the annual rate of return of this investment if you can (5%) buy ICBC share at $5.2 in the market? (d) John wishes to invest in shares to create his life annuity plan. What are…
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