General Accounting You wish to retire in 13 years, at which time youwant to have accumulated enough money toreceive an annual annuity of $23,000 for 18years after retirement. During the periodbefore retirement, you can earn 9% annually,while after retirement you can earn 11% onyour money. What annual contributions to theretirement fund will allow you to receive the$23,000 annuity? Calculate your final answerusing the formula and financial calculatormethods.

Step 1: Define AnnuityA chain of receipts or payments, receiving some interest upon it is called an…

Answered: You wish to retire in 13 years, at…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

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Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friends trust fund payments. For further instructions on future value in Excel, see Appendix C.
You wish to retire in 11 years, at which time you want to have accumulated enough money to receive an annual annulty of $26,000 for 16 years after retirement. During the period before retirement you can earn 12 percent annually, while after retirement you can earn 14 percent on your money. What annual contributions to the retirement fund will allow you to receive the $26,000 annuity? Use Appendix C and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. Annual contribution
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You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.
Please help me with this question :) A detailed answer will be much appreciated.
You plan to retire in 20 years. At the point of retirement, you want to be able to withdraw 25478 at the end of each year forever. Assume that you earn a 7.11% rate of return prior to retirement and an 4.54% rate of return after retirement. If you do not want to make any further contributions to your retirement fund, how much do you need today? Round answer to the nearest dollar.
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To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate $220,000 by the end of 42 years from today. You plan to make equal annual end-of-year deposits into an account paying 8 percent annual interest.a. How large must the annual deposits be to create the $220,000 fund by the end of 42 years?b. If you can afford to deposit only $600 per year into the account, how much will you have accumulated by the end of the forty-second year?
For planning purposes, an individual wants to be able to spend $90,000 per year, at the end of each year, for an anticipated 30 years in retirement. In order to fund this retirement account, he plan to make annual deposits for 20 years at the end of his each working year. What is the amount he need deposit each year to fund his desired retirement spending? Use 10% as an annual simple rate for all calculations.
Suppose you wish to retire forty years from today. You determine that you need $50,000 per year once you retire, with the first retirement funds withdrawn one year from the day you retire. You estimate that you will earn 6% per year on your retirement funds and that you will need funds up to 25 years after retirement. Use the PV of an ordinary annuity due formula. a) Calculate the amount you must deposit in an account today so that you have enough funds for retirement b) Calculate the amount you must deposit each year, starting one year from today, so that you have enough funds for retirement.
You plan to make your first $6,470 contribution to your individual retirement account in 2 years. Assuming you earn a 7.02 percent rate of return and make no additional contributions, what will your account be worth (in $) when you retire 50 years from now?
a) You deposit $200 monthly into an annuity with the goal of accumulating $180,000 after 30 years. What annual rate, compounded monthly, is required to ?accomplish this b) At retirement, a client has two payment options: a 20-year annuity at $50,000 per year starting after 1 year or a lump sum of $500,000 today. If the client's required rate of return on retirement fund investments is 6% per year, which plan has the higher present ?value and by how much

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