Your client is 30 years old and wants to retire at age 60. They currently have $100,000 in their 401k plan. The portfolio you recommend has an 8% expected return. If your client wants to accumulate $2 million by age 60, joe much must they contribute each month starting one month from today?

Q: Your client, Tom, has come to you inquiring about retirement. He wants to know approximately how…

A: Given: Annual retirement amount “PMT” = $182365 Number of years post retirement = 90-64 = 26 Nominal…

Q: Suppose you have $4,000,000 when you retire and want to withdraw an equal amount each year for the…

A: The regular fixed periodic deposits/withdrawals made at each interval are recognized as an annuity.…

Q: Your client is 45 years old, and she wants to begin saving for retirement, with the first payment to…

A: Time = t = 65 - 45 = 20Payment = p = $6000Interest rate = r = 11%

Q: A friend wants to retire in 30 years when he is 65. At age 35, he can invest $600/month that earns…

A: Solution-Given thatAge of retirement=65 year [after 30 years of service]Investment at age 35=$600…

Q: A. What is the future value of each of these options at age 65, and under which scenario would he…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: You have just turned 23 years of age and accepted your first job. However, you would like to retire…

A: Current Age is 23 years The retirement age is 58 years Therefore; the Time period of the deposit is…

Q: Barry plans to invest $350 a month for the next 30 years, how much money will he have in his account…

A: Given data, monthly payment = $350 number of years = 30 years annual rate = 12%   To calculate the…

Q: our client is 40 years old; and she wants to begin saving for her retirement, with the first payment…

A: Given:

Q: 4. You want to have a retirement fund of $200,000 available when you retire. You invest in an IRA to…

A: The sum that remains after future cash amounts have been discounted to a later date is most likely…

Q: You are planning to save for retirement over the next 35 years. To do this, you will invest $660 per…

A: Money invested in the stock market and bonds would grow to much larger amount due to the compounding…

Q: You just turned 30 and want to retire in 35 years with $1,500,000. Assuming you can get a rate of…

A: Here, To Find: Monthly deposits =?

Q: You are looking to invest in your company's 401(k) for your retirement. Their conservative plan…

A: The concepts of TVM will be used and applied here.TVM refers to time value of money.To make the data…

Q: ● Gilles Lebouder has just been offered a job at $50,000 a year. He anticipates his salary will…

A: Present value of his lifetime salary is calculated using following equation Present value =…

Q: Your business finance course has motivated you to begin investing for retirement in your company's…

A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…

Q: You plan to retire in 35 years and would like to have $1,000,000 in investments. How much money…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: ou would like to start saving for retirement. Assuming you are now 20 years old and you want to…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Right after graduating from LSU, you get your dream - job with a starting salary $100,000 annually…

A: Starting salary = $100,000Growth rate =6%401k contributions = 15%Return on contribution = 10%Working…

Q: You want to have $2million when you retire. You think you can earn 11% return on your retirement…

A: The question is based on the concept of present value calculation for future cash flow. Formula as,…

Q: You are a financial adviser. Your client is thinking of investing $800.00 at the end of every six…

A: This is the question of future value of annuity. Future value of annuity is the stream of recurring…

Q: Based on the number of years until your retirement, calculate the monthly savings required to build…

A: You are 32 years old and considering the retirement age of 60 years the no. of years left till…

Q: You have heard about the impending retirement crisis facing the global community and you want to…

A: Monthly Deposits (PMT) is $380Time Period (n) in years is 40Interest Rate (r) is 7.74%Compounding…

Q: Congratulations! You just got your first job and have decided to invest in the company's 401k plan…

A:

Q: Calculate the simple three-day moving average for the S&P 500 and the exponential three-day moving…

A: Technical analysis use the market data in order to ascertain the price at which a stock must be…

Q: You are 30 years old today. You want to retire at the age of 65. You expect to live until age 90.…

A: Retirement planning is quite necessary and that should be done based on time value of money and…

Q: The Hamptons want to have $2,750,000 for their retirement in 30 years. How much should they save…

A: Accumulated amount required after 30 Years (A) = $2,750,000 Period = 30 Years Number of monthly…

Q: How much does your client need to contribute to a fund each month for the next 25 years (first…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: You save $800 a year into a 401(k) account that you invest in a mutual fund earning 9% per year.…

A: Given, Amount saved every year is $800 Rate is 9% Number of years is 25.

Q: You are starting a new job, and have the option to start a new retirement plan. Your goal is to have…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: How much do you need to contribute each year to fund your retirement?

A: Step-1:Calculate the present value at the age of 65 of withdrawl of cash after retirement to 100th…

Q: Today, you retire with $1,100,000 and you want to ensure that you can withdraw $1250 per week (52…

A: The question gives the following information:

Q: Ryan is 30 years old and wants to save $2 million for retirement in 30 years. Assume he invests in a…

A: Given: Rayan is 30 years old ad he wants $2000000 in his account after 30 years. Years of waiting…

Q: retire in 27 years. When you do, you would like to have the purchasing power of $114,071 today,…

A: The present value of annuity due refers to the current value of a series of future payments. The…

Q: Your client wants to retire in 20 years. He has nothing saved. He wants to know the monthly savings…

A: Using excel PMT function

Q: A client wants to retire in 20 years and expects to enjoy retirement for at least 25 years. They…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up…

A: The 401k contributions are the contribution made by the employee and employer for the retirement of…

Q: You're 30 years old. By some miracle of maturity, you've man- aged to save $100,000 for retirement…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: You are looking to invest in your company's 401(k) for your retirement. Their conservative plan…

A: The concepts of TVM will be used and applied here.   TVM refers to time value of money.

Q: You want to accumulate $1,250,000 prior to retirement.  If you can earn 10% per yr. and have the…

A: RATE (10%/12) 0.833% TIME PERIOD (30 years * 12 months) 360 PRESENT VALUE $0 FUTURE VALUE…

Q: Sixty years ago, your grandmother invested $4,500. Today, that investment is worth $430,065.…

A: Due to the compounding of interest large amount of interest accumulated over the period of time and…

Q: You would like to start saving for retirement. Assuming you are now 25 years old and you want to…

A: Future value refers to the value in the future of the current investment at an assumed rate.