Sharon has worked for a company with a retirement program, and today is retiring from her job with the amount of $157000 in her retirement account. She decides to withdrawal an equal amount from this account, once a ye eginning immediately, and ending 25 years from today (for a total of 26 payments). If the interest rate is 6.75%, solve for the annuity amount such that she uses up her full accumulation. Place your answer in dollars and cents. Do not use a dollar sign or comma as part of your answer For example an answer of fifty four point three eight would be placed as 54 38

Sharon has worked for a company with a retirement program, and today is retiring from her job with the amount of $157000 in her retirement account. She decides to withdrawal an equal amount from this account, once a ye eginning immediately, and ending 25 years from today (for a total of 26 payments). If the interest rate is 6.75%, solve for the annuity amount such that she uses up her full accumulation. Place your answer in dollars and cents. Do not use a dollar sign or comma as part of your answer For example an answer of fifty four point three eight would be placed as 54 38

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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Similar questions

Sherry has a goal of retiring with $434,849 by making weekly deposits into an investment account whose annual interest rate is 1.1%. If she will retire in 29 years, how much interest will she earn? Round your answer to the nearest dollar.. Just dont do handwritten.
Mrs. Cruz who is just 30 years old is planning for her retired life. She plans to invest an equal sum of P 7000 at the end of every year for the next 30 years starting from the end of next year. The bank gives 11% interest rate, compounded annually. Find the value of his account when he is 60 years old.
John won a lottery. After taxes, he was able to take home his winnings worth $510000. He decides to deposit 20% of this in a separate savings account for retirement. If the savings account has a nominal interest rate of 7%, compounded monthly, how much will be in the account if he retires in 35 years?
Leila is saving for her retirement by making deposits of $22,000 on each birthday into a savings account starting on her 51st birthday and ending on her 64th birthday (inclusive). Given an effective annual rate of interest of 3.3%, how much will she accumulate by her 65th birthday?
Jim, aged 62, was retrenched and has been unemployed for ten months, but is still looking for work. He has $620,000 in super and, based on advice received, decides to purchase a 4 - year annuity of $24,000 p.a. payable monthly and indexed at 3% p.a. He can obtain this at a yield of 5.1% from a commercial provider. How much does Jim's annuity cost to purchase?
Gary decides to set up a retirement fund by depositing $300 at the end of each week for 29 years. How much will he have after 29 years, if the interest rate is 2.11%, compounded semiannually?
Mary wants to retire in 37 years with $1 million in her retirement account. To that end she decides to save money every year in a savings plan that pays 11.3 percent annually. Her first contribution will occur at the end of the year (one year from today). She needs to save $__________ each year to the savings plan. Round it to two decimal places and do not include the $ sign, e.g., 1234.56.
Monica has recently inherited $9600, which she wants to deposit into an IRA account. She has determined that her two best bets are an account that compounds monthly at an annual rate of 3.7%(Account 1) and an account that compounds quarterly at an annual rate of 4.7%(Account 2).Step 2 of 2 : How much would Monica's balance be from Account 2 over 2.7years? Round to two decimal places.
Linus would like to start saving for his retirement. Starting April 1, 1950, he will make annual deposits into an account, with the last deposit coming on April 1, 1990. Linus assumes he will get pay raises, and plans to increase his deposits by 3.1 percent each year. If he would like to be able to withdraw 44000 dollars per year forever, with the first withdrawal on April 1, 1993, how much will Linus's first deposit need to be? (Assume an interest rate of 4.1 percent effective throughout.)
A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 23.04 years and pool the money into a savings account that pays 3.09% APR. They plan on living for 28.39 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Yearly Contribution Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $24,614.86 $183,591.46 $306,050.80 $1,000.00 $10,000.00 $15,000.00 APR 6.06% 7.55% 5.06%
Elijah James is in his early 30s and is thinking about opening an IRA. He can't decide whether to open a traditional/deductible IRA or a Roth IRA, so he turns to you for help. To support your explanation, you decide to run some comparative numbers on the two types of accounts; for starters, use a 30-year period to show Elijah what contributions of $5,000 per year will amount to (after 30 years) if he can earn, say, 12 percent on his money. Round your answers to the nearest dollar. 1A. traditional IRA $___1B. Roth IRA $ _____ Will the type of account he opens have any impact on this amount?-Select: YES OR NO Assuming that Elijah is in the 25 percent tax bracket (and will remain there for the next 30 years), determine the annual and total (over 30 years) tax savings he'll enjoy from the $5,000-a-year contributions to his IRA. Contrast the (annual and total) tax savings he'd generate from a traditional IRA with those from a Roth IRA. If an answer is zero, enter "0". Round your answers…
Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $130,000 from her savings account on each birthday for 24 years following her retirement, the first withdrawal will be on her 66th birthday. Your friend intends to invest her money at 10.7% interest per year. How much money must she accumulate by the time she retires in order to make these withdrawals? (Round your answer to the nearest dollar)

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