(Round to the nearest dollar.) At retirement, Joshua will have $ (Round to the nearest dollar.) (Use the Financial Tables in Appendix Cin computing your answer or you may use the financial calculator.)
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- H. Today is Amy's 24th birthday. Starting today, Any plans to begin saving for her retirement, which she expects to be at age 68. Her plan is to contribute $6,000 to a brokerage account each year on her birthday. Her first contribution will take place today. Her final contribution will take place on her 67th birthday. Her grandpa has decided to help Amy with her savings, which is why he gave Amy $2,000 today as a birthday present to help get her account started. Assume that the account has an expected annual return of 8.6 percent. How much will Any expect to have in her account at retirement (on her 68th birthday)? Hint: think of the cash flow type, annuity DUE.H. Today is Amy's 22th birthday. Starting today, Any plans to begin saving for her retirement, which she expects to be at age 68. Her plan is to contribute $6,000 to a brokerage account each year on her birthday.Her first contribution will take place today. Her final contribution will take place on her 67th birthday. Her grandpa has decided to help Amy with her savings, which is why he gave Amy $3,000 today as a birthday present to help get her account started. Assume that the account has an expected annual return of 8.9 percent. How much will Any expect to have in her account at retirement (on her 68th birthday)? Hint: think of the cash flow type, annuity DUE. Inputs: Output: Initial deposit: Future Balance Annual Contribution: Num of periods: Annual Return:Today is Janet's 23rdbirthday. Starting today, Janet plans to begin saving for her retirement. Her plan is to contribute $3,000 to a brokerage account each year on her birthday. Her first contribution will take place today. Her 42ndand final contribution will take place on her 64th birthday. Her aunt has decided to help Janet with her savings, which is why she gave Janet $10,000 today as a birthday present to help get her account started. Assume that the account has an expected annual return of 14 percent. How much will Janet expect to have in her account on her 65th birthday? Round your answer to a whole dollar; for example 2345.
- Today is Hanan 23rd birthday. Starting today, Hanan plans to begin saving for her retirement. Her plan is to contribute $1,000 to a brokerage account each year on her birthday. Her first contribution will take place today. Her 42nd and final contribution will take place on her 64th birthday. Her aunt has decided to help Hanan with her savings, which is why she gave her $10,000 today as a birthday present to help get her account started. Assume that the account has an expected annual return of 10 percent. How much will Hanan expect to have in her account on her 65th birthday?As soon as she graduated from college, Kay began planning for her retirement. Her plans were to deposit $500 semiannually into an IRA (a retirement fund) beginning six months after graduation and continuing until the day she retired, which she expected to be 30 years later. Today is the day Kay retires. She just made the last $500 deposit into her retirement fund, and now she wants to know how much she has accumulated for her retirement. The fund earned 10 percent compounded semiannually since it was established. a. Compute the balance of the retirement fund assuming all the payments were made on time. b. Although Kay was able to make all of the $500 deposits she planned, 10 years ago she had to withdraw $10,000 from the fund to pay some medical bills incurred by her mother. Compute the balance in the retirement fund based on this information.Investments—Annuities. P is single, 65 years old, and retired. On August 1, 2008, he purchased a single-premium deferred life annuity for $40,000 using after-tax funds. This year, P received $5,000 in annuity benefits. He will receive a like amount each year for the rest of his life. (Note: In answering the following questions, use the information in Exhibit 6-4 of this chapter.) a. Calculate P’s taxable income from the annuity for the current year. b. Calculate P’s taxable income from the annuity for year five. c. Calculate P’s taxable income from the annuity for year 22. d. Assume P lives just 15 more years. Calculate the deduction that would be allowed on P’s final tax return. e. Assume the annuity was purchased by P and his employer jointly. P contributed $12,000 in after-tax funds, and the employer contributed $28,000. Calculate P’s taxable income from the annuity for the current year.
- The Ali plan to retire and start receiving their Social Security benefits at the same time, when Jimmy is 67 and Lucy is 62 years old. Their monthly Social Security retirement benefits at those ages in today's dollars are estimated to be $3,200 for Jimmy and $2,000 for Lucy. They think their expenses in retirement in today's dollars will be 70% of their total cash outflows now. Other than Social Security, they will rely on their retirement savings in order to meet their retirement expenses. They want to assume they will die in the same year, when Jimmy is 95 and Lucy is 90 years old.Determine what the payments will be in the distribution phase. These will be the withdrawals Jimmy and Lucy will need to take monthly from their accounts, in order to meet their retirement expenses. How much is that monthly amount?Note: this question is asking about the withdrawals they will need, not about the expenses they will be incurring monthly.Ms. Ieda Silva plans to retire in 28 years and expects to live for 25 years after retirement. She is preparing a savings plan to meet the following objectives. First, after retirement she would like to be able to withdraw $20,000 per month. The first withdrawal will occur at the end of the first month after retirement. Second, she would like to leave her son an inheritance of $500,000 when she passes on. Finally, she would like to set up a fund that will pay $15,000 per month forever to her favorite charity after she passes on. These payments to the charity will start one month after she passes on. All monies can earn 10 percent annual rate compounded monthly. How much will she have to save per month to meet these objectives? She wishes to make the first deposit a month from now and the last deposit on the day she retires. A.$983.24 B.$1,105.11 C.$1,550.51 D.$1,202.17 E.$603.38 F.$430.71 G.$1,014.02 H.$1,306.52After receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in a savings account with an effective annual interest rate of 3%. She decided to make regular deposits, beginning with $1000 on her 22nd birthday and increasing by $200 each year (i.e., $1200 on her 23rd birthday, $1400 on her 24th birthday, etc.). What was the future worth of Katlyn’s deposits after her deposit on her 66th birthday?
- Fatima recently set up a tax-deferred annuity to save for her retirement. She arranged to have BD 110 taken out of each of his monthly checks; it will earn 2% annual interest. She just had her 23 birthday, and her ordinary annuity comes to term when she is 69. Find the following: a. Find the future value of Fatima’s annuity. b. Find Fatima’s total contribution to the annuity. c. Find the total interest earned on the annuity. Note: I need a 100% correct answer with the steps pleaseDaryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave in the fund a sum worth $1,000,000 to his nephew who is under his charge. The fund will continue to earn 12% compounded monthly. How much should the monthly deposits be for his retirement plan?Your friend is celebrating her 30th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $100,000 from her savings account on each birthday for 25 years following her retirement, with the first withdrawal on her 66th birthday. Your friend intends to invest her money in the local credit union, which offers 8 percent interest per year. She wants to make equal annual payments on each birthday into the account established at the credit union for her retirement fund.b.) Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lump-sum payment on her 30th birthday to cover her retirement needs. What amount does she have to deposit?