Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You can afford to put $1,600 per quarter into the fund, and you will workfor 40 years before retiring.How much money (in dollars) has accumulated in the retirement fund when you retire? (Round your answer to the nearest cent.)$After you retire, you will be paid a quarterly pension based on a 25-year payout. How much (in dollars) will you receive each quarter? (Round your answer to the nearestcent.)

Formula for Calculating Future Value = PMT [(1+i)n - 1] / i Here, PMT = 1600 i =…

Answered: Your pension plan is an annuity with a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

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You plan to place $1,200 per year into a Roth IRA. You expect to earn 6% APR and you will place this amount into the account for 35 years. How much will you have in the account in 35 years? Round to the nearest $1,000.
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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