You turned 20 today and you want to retire on your 65th birthday. Starting with the day of your retirement, you would like to have a growing annuity ($60,000 payment on the day of your retirement and growing by 4% each year thereafter for a total of 25 years of payments). You will start saving with equal annual deposits of $2,439.80 into an investment account beginning in one year from today and ending after 30 total deposits. Assume a discount rate of 9%. As of the date of your 60th birthday, your plan is overfunding by how much? Round to the nearest thousands of dollars and use the $ symbol. No decimal places. Hint....the correct answer is a 6 digit number ending in 000.

Q: Through your career, you have saved-up $1,150,000. You are now ready to retire. You discuss your…

A: Present Value = pv = $1,150,000Annuity = pmt = $68,000Time = nper = 25 Years

Q: To find the value of an annuity due, you will multiply the value of the ordinary annuity by…

A: Present value is the current worth of the future payments that are to be received. As per time value…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $1,400,000 by…

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

Q: You have just won the lottery and took a lump sum payout. After talking with a financial adviser you…

A: Present value of $16,000: Present value: $376,205.407024

Q: Suppose that ​$ 2,500 is set aside each year and invested in a savings account that pays ​8%…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: ou would like to have $25,000 in 5 years for the down payment on a new house following college…

A: An annuity refers to a cash flow series that occurs periodically and that are usually fixed and…

Q: You are considering putting $3,500 in a savings account that pays 11 percent in interest each year.…

A: A) Future Value = Present Value*(1+Interest Rate)^No. of periods WherePresent Value = $3500Interest…

Q: You are planning to save $1.5 million for retirement over the next 34 years. (a) If you are earning…

A: Savings = $1,500,000Working years = 34Interest rate = 7%Retirement years = 24Inflation rate =2%To…

Q: Thinking ahead to retirement, assume you will be able to earn a 10 percent return on your…

A: Here annuity formula  should be used

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: What will be the value in your account at the end of Year 30?

A: Future Value of Annuity: It represents the future worth of the annuity payments made for a given…

Q: You are 20 years old today.  You plan to start saving for retirement on your 29th birthday in the…

A: The process of developing a plan for one's future is referred to as financial planning. It aids…

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: You would like to have $7,000.00 in 14 years for a special vacation following graduation by making…

A: The objective of this question is to determine the amount of money that needs to be deposited at the…

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: a) You deposit $200 monthly into an annuity with the goal of accumulating $180,000 after 30 years.…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

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: 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: Suppose that you'd like to retire in 40 years and you want to have a future value of $ 500000 in a…

A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…

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: It is now the beginning of the year. Assume that, starting at the end of the year, you will make…

A: The future value of annuity is calculated using following equation Future value = P×(1+r)n-1r Where,…

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

A: The question is based on the concept present value of annuity payment Formula as, Pv=pmt*1-(1+r)-nr

Q: You are investing in a retirement account and plan to deposit $5,000 per year into the account for…

A: Money has time value because money can be invested elsewhere and money can be earned so money today…

Q: How much must you deposit each year into your retirement account starting now and continuing through…

A: yearly deposit refers to the amount deposited every year for the accumulation of money for the…

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.