Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 9, Problem 3LO
Summary Introduction
To determine: The health insurance needs of an individual and the method for selecting appropriate coverage.
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In 1895, the first U.S. Putting Green Championship was held. The winner's prize money was $170. In 2022, the winner's check was
$3,950,000.
a. What was the percentage increase per year in the winner's check over this period?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
b. If the winner's prize increases at the same rate, what will it be in 2053?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
a. Increase per year
b. Winners prize in 2053
%
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 73.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 73.0 when he fully retires, he will begin to make annual withdrawals of $183,008.00 from his retirement account until he turns 94.00. After this final withdrawal, he wants $1.52 million remaining in his account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 6.00% interest rate.
Round to 2 decimal places.
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 71.00. During these years of
part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after
the day he turns 71.0 when he fully retires, he will begin to make annual withdrawals of $177,333.00 from his retirement
account until he turns 94.00. He he will make contributions to his retirement account from his 26th birthday to his 65th
birthday. To reach his goal, what must the contributions be? Assume a 9.00% interest rate.
Submit
Answer format: Currency: Round to: 2 decimal places.
Chapter 9 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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