When you retire 40 years from now you plan to make 10 annual withdrawals from your savings account at the end of each year, until the 50th year. You will need Amount A each year for 2 years, then Amount B each year for 3 years, Amount C each year for 4 years, then a final withdrawal of Amount D in the final year of retirement. You want to start saving for retirement now and plan to make end of year annual payments for 20 years into an account that yields 8 percent compounded annually. After these deposits you plan to leave the money in the savings account until retirement earning the same interest. Answer questions (a) to (c) below. withdrawal Amount A $ 134,737 Withdrawal Amount B 142,173 Withdrawal Amount C 167,611 Withdrawal Amount D 191,236 Interest rate 8%

When you retire 40 years from now you plan to make 10 annual withdrawals from your savings account at the end of each year, until the 50th year. You will need Amount A each year for 2 years, then Amount B each year for 3 years, Amount C each year for 4 years, then a final withdrawal of Amount D in the final year of retirement. You want to start saving for retirement now and plan to make end of year annual payments for 20 years into an account that yields 8 percent compounded annually. After these deposits you plan to leave the money in the savings account until retirement earning the same interest. Answer questions (a) to (c) below. withdrawal Amount A $ 134,737 Withdrawal Amount B 142,173 Withdrawal Amount C 167,611 Withdrawal Amount D 191,236 Interest rate 8%

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

You want to have $500,000 when you retire in 30 years. If you can earn 4% interest compounded continuously, how much would you need to deposit now into the account to reach your retirement goal?
You are planning to save for your retirement during the next 30 years. You want to be able to withdraw $120,000 from your savings account every year for the next 20 years after you retire. You plan to invest your savings in a local bank, which offers 8% APR compounded monthly, and make equal annual payments into this savings account. What amount should be deposited annually in this savings account in order to withdraw $120,000 every year after your retirement?
PLEASE ANSWER ASAP AND CORRECTLY USING ENGINEERING ECONOMICS!
when you retire 40 years from now you plan to make 10 annual withdrawals from your savings accounts at the end of each year, until the 50th year. You will need 131,480 each year for 2 years, then 143,827 each year for 3 years and 166,728 each year for 5 years. You want to start saving for retirement now and plan to make annual payments for 20 years into an account that yields 8 percent compounded annually. After these deposits you plan to leave the money in the savings account until retirement earning the same interest. What should these annual payments be in order to satisfy your retirement needs? Assume end of year payments.
You want to open a savings plan for your future retirement. You are considering two options as follows: Option 1: You deposit Php 1,000 at the end of each quarter for the first 10 years. At the end of 10 years, you make no further deposits, but you leave the amount accumulated at the end of 10 years for the next 15 years. Option 2: You do nothing for the first 10 years. Then you deposit Php 6,000 at the end of each year for the next 15 years. Compare the amount accumulated in Option 1 and Option 2. If your deposits or investments earn on interest rate of 6% compounded quarterly, and you chose Option 2 over Option 1, At the end of 25 years from now, I will accumulate what amount of money?
After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. 1 Assume that the payments start on the day of your retirement. 2.Assume that the payments start one year after the retirement.
(Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Life box in thischapter, you have decided to invest $4,700 at the end of each year into a Roth IRA for the next 40 years. If you earn 8 percent compounded annually on your investment, how much will you have when you retire in 40 years? How much will you have if you wait 10 years before beginning to save and only make 30 payments into your retirement account?
You want to start saving for retirement by opening an RRSP account. You have no savings yet but that's okay because you are still young. You plan to retire in 30 years. Upon retirement, you would like to be able to spend $120,000 a year for 20 years. You fund this spending by making beginning of month withdrawals that are the same amount (size) every month. The first withdrawal occurs once you begin your retirement in 30 years. The last withdrawal occurs at the beginning of the last month of your retirement horizon. How much do you need to deposit at the end of each month for the next 30 years in order to achieve your retirement objective? Your RRSP account pays 7.7% p.a. compounded semi-annually during both savings and retirement periods.
You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of $4,200 per year yielding 7 percent. What will be the value of the retirement fund after 40 years? Round your answer to nearest whole dollar.
K You are saving for retirement. To live comfortably, you decide you will need to save $3 million by the time you are 65. Today is your 20th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 7%, how much must you set aside each year to make sure that you will have $3 million in the account on your 65th birthday? www The amount to deposit each year is $. (Round to the nearest dollar.)
K You are saving for retirement. To live comfortably, you decide you will need to save $1 million by the time you are 65. Today is your 21st birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 9%, how much must you set aside each year to make sure that you will have $1 million in the account on your 65th birthday? The amount to deposit each year is $(Round to the nearest dollar)
in planning for your retirement, you would like to withdraw $80,000 per year for 17 years, the first withdrawal will occur 20 years from today. A- what amount must you invest today if your return is 10% per year? B-What amount must you invest today if your return is 15% per year?

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