You have just made your first $10,000 contribution to your individual retirement account. Assume you earn an annual rate of return of 12 percent compounded quarterly and make no additional contributions. What will your account be worth when you retire in 50 years?Note: Do not round intermediate calculations and round your answer to 2 decimal Blaces, e.g., 32.16. You need $20,000 to go on your dream vacation to South Africa. If you save $5,000 today in an account at 10% interest compounded annually, how long will you have to wait to go on your dream vacation?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Q: ) Assume that Luke Smith wants to retire in 20 years. He expects to live for another 15 after his…

A: In financial planning the present value the required amounts in future must be equal to future value…

Q: You have discussed your retirement plans with your significant other and plan to move to a state…

A: Yield = 5% Return Annual Withdrawals = 85,000

Q: suppose you put $1500 into your IRA this year. You do not make any additional contributions to the…

A: given, pv = $1500 r=10.5% n = 42 years

Q: ou have $300,000.00 saved in a retirement account paying 4% interest compounded monthly and are…

A: Pension Scheme : It is the plan for pension after retirement to deposited the lump sum amount at…

Q: You want to retire 32 years from today and buy a beach house in Costa Rica. Today, those houses sell…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…

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: year, to make a down payment of $75,752 on a vacation home If you can earn 3.03 percent on your…

A: The future value idea is a useful tool for investors to compare various investment prospects.…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $55,928 of…

A: Annuity = a = $55,928Time = t = 10 YearsRate of Return = r = 8%

Q: $289744.28

A: Formula for FV in Excel:= FV(rate,nper,pmt,pv)where, rate = Interest ratenper = number of…

Q: How much money would you need to have at retirement so that you can withdraw $50,000 a year for 20…

A: Present value of annuity concept is required to use in this case. Present value of annuity is the…

Q: 1. You want to start saving for retirement. In a savings account, you deposit $100 at the end of…

A: We need to use RATE function in excel to calculate interest rate on loan. The equation is:…

Q: You have already saved $6975 to buy a used car. You invest this money in a certificate of deposit…

A: Future Value refers to the value of the current asset at any specified future date for a given…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $95,000 of…

A: Annual Payment (P) = $95,000Interest rate (r) = 4.70% or 0.047Number of years (n) = 20Payment timing…

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: 1.You’re trying to save to buy a new $180,000 Ferrari. You have $50,000 today that can be invested…

A: Because you have posted multiple questions, we will answer the first question only. For the…

Q: en you retire at 65 you can take either $500,000 in cash or an ordinary annuity that promises to pay…

A: Today value=PV=$500000PMT=annuity=$47488.98Rate-r=8%Required =number of years

Q: A pleasant gentleman has advised you via email that you are entitled to a $1 million inheritance.…

A: Calculate the retirement money as follows:MS-Excel --> Formulas --> Financials -->  FV

Q: A family has a goal of saving $31,000 to be used as the down payment for a house. If they put…

A: The number of years it will take to reach the amount of $31,000 can be determined using NPER…

Q: An aunt gifts you with $12,000, but only after you invest it for one year. She gives you two…

A: INTEREST RATE  4.2% 7.1% PERIOD   12 12 PMT  0 1000 PRESENT VALUE $12,000 0

Q: Please show all steps on how to solve this problem. Your new boss doesn’t have a pension or 401(k)…

A: An annuity refers to periodic cash flows that are received in return for a lump sum payment. It is…

Q: Incorrect Your answer is incorrect. The Barnes family wants to save money to travel the world. They…

A: Future Value of Ordinary Annuity: It represents the future worth of the annuity payments made at…

Q: A couple will retire in 40 years; they plan to spend about $21,000 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: you would like to have enough money saved to receive a $53,000 per year perpetuity after retirement.…

A: Perpetuity refers to something that lasts forever, without an end.It represents an infinite duration…

Q: Jack and Jill need to save $8600 toward a new car. How long will it take them if they save $210 a…

A: An annuity is a phenomenon of making periodic payments for a fixed interval of time at a specified…

Q: Your father is about to retire, and he wants to buy an annuity that will provide him with $52,000 of…

A: Annuity = a = $52,000Time = t = 25Interest rate = r = 5.95%Payment Type = at the beginning

Q: Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5.1% interest. How…

A: Future value required (FV) = $400,000 Interest rate = 5.1% Monthly interest rate (r) = 5.1%/12 =…

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: 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the…

A: A down payment is an early stage payment made for a particular good purchased through financing.

Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 5% interest. Feel…

A: Retirement amount = $400,000Number of years = 25Interest rate = 5%To find: a) Monthly deposit, b)…

Q: 3. Rico wants to buy a retirement annuity that will pay him the first of 50 semiannual payments of…

A: Annuity refers to series of equalized payments that are made over definite period either at start of…