You plan to retire in exactly 15 years and are worried about the money you will...

You plan to retire in exactly 15 years and are worried about the money you will have to live on during your retirement.

Requirement 1:

You currently have $100,000 in a bond account and you plan to add $4,000 per year at the end of each of the next 15 years to the account. If the bond account earns a return of 5 percent per year over the next 15 years, how much will you have in the bond account when you retire? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Value of Bond Account

$

Requirement 2:

You also currently have $600,000 in a stock account. If the stock account earns a return of 8.5 percent per year over the next 15 years, how much will you have in the stock account when you retire? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).

Value of Stock Account

$

Requirement 3:

When you retire, you will transfer your money from the bond and stock accounts into a combined retirement account that earns 4.50 percent. Your plan is to withdraw an equal amount from your combined account at the end of each year for the next 20 years and then have nothing left. How much can you withdraw each year in your retirement? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).

Annual Withdrawal

$

Expert Solution

jeff jeffy answered 7 months ago

You plan to retire in exactly 20 years. Your goal is to create a fund that...

You plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive $20,000 at the end of each year for the next 30 years between retirement and death (a psychic told you that you’d die exactly 30 years after you retire). You know that you will be able to earn 11% per year during the 30-year retirement period. Required: d. Now assume that you will earn 10% from now through the...

You plan to retire in 15 years and buy a house in Oviedo, Florida. The house...

You plan to retire in 15 years and buy a house in Oviedo, Florida. The house you are looking at currently costs $150,000 and is expected to increase in value each year at a rate of 6 percent. Assuming you can earn 9 percent annually on your investments, how much must you invest at the end of each of the next 15 years to be able to buy your dream home when you retire? a. If the house you are...

You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement...

You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compounded monthly. After you retire, you plan on withdrawing $15,000 per month from your account until you have nothing left. How many years can you live off your retirement account after you retire?

A man is planning to retire in 15 years. Money can be deposited at 4% interest...

A man is planning to retire in 15 years. Money can be deposited at 4% interest compounded quarterly, and it is also estimated that the future general inflation rate will be 6% compounded annually. What amount of end-of quarter deposit must be made each quarter until the man retires so that he can make annual withdrawals of $80,000 in terms of today's dollars over the 20 years following his retirement? (Assume that his first withdrawal occurs at the end of...

A man is planning to retire in 15 years. Money can be deposited at 8% interest...

A man is planning to retire in 15 years. Money can be deposited at 8% interest compounded quarterly, and it is also estimated that the future general inflation rate will be 6%. What amount of end-of-quarter deposit must be made each quarter until the man retires so that he can make annual withdrawals of $80,000 in terms of today's dollars over the 20 years following his retirement? (Assume that his first withdrawal occurs at the end of the first year...

A couple will retire in 40 years; they plan to spend about $37,000 a year in...

A couple will retire in 40 years; they plan to spend about $37,000 a year in retirement, which should last about 20 years. They believe that they can earn 7% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How would the answer to part...

A couple will retire in 40 years; they plan to spend about $35,000 a year in...

A couple will retire in 40 years; they plan to spend about $35,000 a year in retirement, which should last about 20 years. They believe that they can earn 9% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual Savings = b. How would the...

A couple will retire in 50 years; they plan to spend (in today's dollars) about $30,000...

A couple will retire in 50 years; they plan to spend (in today's dollars) about $30,000 a year in retirement, which should last about 25 years. They believe that they can earn 8% interest on retirement savings. The inflation rate over the next 75 years is expected to average 5%. a. What is the real annual savings the couple must set aside? Assume they will discontinue saving when they retire. (Do not round intermediate calculations. Round your answer to 2...

You plan to work for another 30 years at which point you plan to retire, after...

You plan to work for another 30 years at which point you plan to retire, after which you expect to live for another 30 years. During your retirement, you plan to make annual withdrawals at the beginning of each year where each withdrawal should have the same purchasing power as $100,000 today. You would also like to provide a bequest to your children (paid when you die) that has the same purchasing power as $1 million today. To provide for...

Assume that you plan to retire in 35 years and that you estimate you will need...

Assume that you plan to retire in 35 years and that you estimate you will need an income of $100,000 at the beginning of each year for 30 years, following your retirement. You also plan to donate $1,000,000 to the Georgia Southern University College of Business to endow a scholarship in the name of your favorite finance professor. You will make this endowment exactly 5 years after you retire. Assume that you will earn 11.00 percent during your working years...

Question