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

Q: Suppose you are 30 years old and would like to retire at age 60. Furthermore, you would like to have…

A: The amount in your saving account at the time of retirement can be calculated using the perpetuity…

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

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A: Future Value = fv = $1,400,000Time = t = 48Interest Rate = r = 12%

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

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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…

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A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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

Q: As part of your financial planning and to supplement your retirement, you decided to save $3000 at…

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Q: ppose you wish to retire 38 years from today. You determined that you need $220,000 per year after…

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A: Solution:-When an equal amount is saved each period at end of period, it is called ordinary…

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A: When a person stops working actively or full-time in a company or a department, it is called…

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.