Suppose you are 40 years old and plans to retire in exactly 20 years.  Twenty one years from now you will need to withdraw P50,000 per year from your retirement fund to add to your SSS pension. Assume you are to live for 85 years, how much  money should you place in the retirement fund each year for the next 20 years to reach your retirement goal if you can earn 12% interest per year form the fund?​

Q: You desire an annual retirement income of $200,000 in your You expect to live for 30 years past…

A: INTRODUCTION: To accumulate is to gather or raise the quantity of something. In finance,…

Q: moid has just tume sume a return that is compounded annually Present val in a ect one: a. between 5…

A: The annuity pays the annual payment for given period of time and give interest rate and the amount…

Q: Suppose you plan to retire in 40 years.  If you make annual contributions of $15,000 into your…

A: Data given:Part IFor 14 yearsPMT=$15000Rate=14%Part IIFor remaining 26 yearsPV=Amount computed in…

Q: Henry would like to have a retirement income of $3,000 per month (month-end payments). How much must…

A: We need to use present value of ordinary annuity(payment due at end of period) formula to solve this…

Q: Your financial advisor has encouraged you to save $500 each month for retirement. You expect to…

A: Money at the end of 40 Years  = Monthly deposit × 12 months × Years of Deposit = $500 × 12 × 40 =…

Q: You believe you will spend $44, 000 a year for 16 years once you retire in 32 years. If the interest…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: The AGI of the Newtons, a married couple, is $199,000 this year. They would like to contribute to a…

A: 2. The maximum  to contribute can be calculated as follows : Results obtained :

Q: You decide to save $8000 per year from now on. You plan to retire in 30 years’ time. (a) How much…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: Assume that today is January 1, 2022, and that you just turned 25 years old. You plan to retire when…

A: Amount of required in the retirement account as on the date of retirement is the present value of…

Q: After retirement, you expect to live for 25 years. You would like to have a $95,000 income each…

A: Here,

Q: You intend to make the annual maximum contribution of $6,000 to your Roth IRA (individual retirement…

A: Maximum Contribution per Year(PMT) is $6000 Time Period(NPER) is 30 years Rate is 10 years   To…

Q: A couple will retire in 50 years, they plan to spend about 000 a year (in current dollars) in…

A: Annual savings refers to an amount that is kept aside or invested in some plan for the purpose of…

Q: Calculate how much you will have to save each month between now and then to have $300,000 in your…

A: Calculate the monthly saved amount as follows:

Q: How much money would you need to deposit every year for 40 years to become a millionaire if the…

A: Given, The amount required in 40 years is 1,000,000 Interest rate 12%

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year (in current dollars) in…

A: Annual savings refers to an amount that is kept aside or invested in some plan for the purpose of…

Q: Your pension plan is an annuity with a guaranteed return of 5.8% per year (compounded quarterly).…

A: To solve this problem, we need to break it down into two main parts:1. Accumulation Phase (Before…

Q: Suppose you plan on retiring at the age of 35 (early retirement woooooooo!) and expect to live…

A:

Q: Tanja wants to establish an account that will supplement her retirement income beginning 30 years…

A: The Present Value (PV) is an evaluation of the current value of a stream of future cash flows. Due…

Q: ow much must you set aside each year to make sure that you will have $4,000,000 in the account on…

A: Future value of an annuity: It represents the future worth of the annual cash flows made…

Q: what is the value today of Social Security's promise?

A: Social security is the amount which is given by certain employers in addition to salary that gets…

Q: Your uncle Barry is about to retire, and he wants to buy an annuity that will provide him with…

A: ANNUITY =77000 Period =25 years  interest rate =8.5%

Q: Suppose you are 30 years old and would like to reure do this? Assume a constant APR of 5% and that…

A: Amount withdrawn per year = $100,000Current age = 30 yearsAPR = 5%Retirement age = 65 years

Q: Let’s say that you are saving up for retirement and decide to deposit $3,000 each year for the next…

A: The objective of this question is to calculate the difference in the final amount of savings when…

Q: As the beneficiary of a life insurance policy, you have two options for receiving the insurance…

A: The question is based on the concept of annuity in Financial Management. Annuity refers to the…

Q: Suppose you are 20 years old and plan to retire at exactly 60 years old. you will need to withdraw…

A: The time value of money is a financial principle stating that a dollar today is worth more than a…

Q: Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You…

A: Formula for Calculating Future Value = PMT [(1+i)n - 1] / i Here, PMT = 1600              i    =…

Q: 1. If you want to have $500,000 when you retire and you put $85,000 in your retirement account right…

A: The NPER function can be used in the excel sheet to determine the number of years that needs to be…

Q: Assume that Social Security promises you $34,000 per year starting when you retire 45 years from…

A: We have to find the PV of an annuity immediate, starting 45 years from today. All the relevant…

Q: You estimate you need to supplement your social security payments with monthly withdrawals of…

A: Given: Monthly withdrawal = $3,420 Interest rate = 6.9% So, monthly interest rate = 0.069/12 = 0.58%…

Q: You have just made your first $10,000 contribution to your individual retirement account. Assume you…

A: Part 1)Step 1: Given Value for Calculation Compound = Quarterly = 4Present Value = pv = $10,000Rate…

Q: Required information Assume that 25 years ago your dad invested $260.000. plus $35,000 in years 2…

A: Let the deposits in year n be Dn. D1 = $260000 D2 to D5 = $35000 D6 to D25 = $43000 r = 15%

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.