None Student questionTime Left: 01:58:39Your nephew, Caleb, is 25 years old and has decided to start a retirementprogram. Beginning in exactly one month he will contribute the amountof $1300 every month into a retirement account. 80% of the funds will beinvested in a high-yield equity fund that is expected to earn 8%annually; 20% of the contribution will be invested in a lower - yield bondfund that is expected to return 5% annually. He will continue to makecontributions for the next 40 consecutive years. When he retires, he willcombine his money into an account with an annual return of 2%.Assuming he lives another 25 years, what is the maximum amount he willbe able to withdrawal per month upon retirement?WOPPOe how I would set up this question and solve it in excelRathod Kishan

To solve this problem, we need to calculate the total value of the retirement account at the end of…

Answered: Student question Time Left: 01:58:39…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 44P

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Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
Part A:By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years.1. How much will the face value of the bond that you will be investing?2. Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above?3. How much will your inheritors receive? Part B: Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement your social security and maintain your desired lifestyle. But because there is on average…
Part A: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years. How much will the face value of the bond that you will be investing? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive? Now let’s extend the problem so that you protect yourself against inflation. Part B: Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement…
Part A: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years. How much will the face value of the bond that you will be investing? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive? Now let’s extend the problem so that you protect yourself against inflation. Part B: Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement…
Part A: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years. How much will the face value of the bond that you will be investing? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive? Now let’s extend the problem so that you protect yourself against inflation. Part B: Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement…
Part A: By the end of this year, you will be 35-years old, and you want to plan for your retirement. You wish to retire at the age of 65, and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened your retirement account with a 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate throughout your retirement years. What is the face value, not the actual value, of the bond that you will be investing in? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above. How much will your inheritors receive?
Part A: By the end of this year, you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement, you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with a 7% annual interest rate. At retirement, you liquidate your account and use the funds to buy an investment-grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years. How much will the face value of the bond that you will be investing? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive?
AN INSTRUCTOR PLANS TO RETIRE IN ONE YEAR AND WANTS AN ACCOUNT THAT WILL PAY HIM P25,000.00 A YEAR FOR THE NEXT 15 YEARS. ASSUMING 6% ANNUAL EFFECTIVE INTEREST RATE, WHAT IS THE AMOUNT HE WOULD NEED TO DEPOSIT NOW? (THE FUND WILL BE DEPLETED AFTER 15 YEARS) a.P248,500.00 b.P250,400.00 c.P249,000.00 d.P242,806.00
Accounting 1:Kaitlyn wants to set up a fund for his son's education such that he could withdraw $2,050.00 at the beginning of every 3 months for the next 2 years. If the fund can earn 2.20% compounded semi-annually, what amount could he deposit today to provide the payment?
Bud Lime has $368,882 accumulated in a retirement account. The fund is earning a low, but safe, 3% per year. Bud Lime plans to take annual withdraws starting today. Assuming each withdrawal is for $30,000; how many annual payments will Bud Lime receive before the fund is depleted? Group of answer choices 15 16 14 12.3
Bud Lime has $368,882 accumulated in a retirement account. The fund is earning alow, but safe, 3% per year. Bud Lime plans to take annual withdraws starting today. Assuming each withdrawal is for $30,000; how many annual payments will Bud Limereceive before the fund is depleted? 15 16 14 12.3
1. Your financial planner has advised you to initiate a retirement account while you are still young. Today is your 35th birthday and you are planning to retire at age 65. Actuarial tables show that individuals in your age group have a life expectancy of about 75. If you want a $50,000 annuity beginning on your 66th birthday which will grow at a rate of 4 percent per year for 10 years: a. What amount must you deposit at the end of each year through age 65 at a rate of 8 percent compounded annually to fund your retirement account? b. How would your answer change if the rate is 9 percent? ¢. After you have paid your last installment on your 65th birthday, you learn that medical advances have shifted actuarial tables so that you are now expected to live to age 85. Determine the base-year annuity payment supportable under the 4 percent growth plan with a 9 percent interest rate.

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