Question

In: Finance

Jason wishes to be able to receive $50,000 a year upon retirement, and he expects to...

Jason wishes to be able to receive $50,000 a year upon retirement, and he expects to live for 25 years after retirement. if he can earn an average rate of return of 10% on his money after he retires,how much does he need to have accumulated at the time he retires? assume he will make his first withdrawal one year after he retires, and round your answer to the nearest dollar

Solutions

Expert Solution

jeff jeffy answered 9 months ago
Next > < Previous

Related Solutions

MCQ 1. Upon retirement, Jason wants to invest his super in a fund where the manager...
MCQ 1. Upon retirement, Jason wants to invest his super in a fund where the manager buys only blue chip companies that pay a regular and high dividend. He is happy for the manager to constantly search for the best stocks which fit this profile and is happy for the portfolio composition to be changed to include the best opportunities of this type. Jason does not require liquidity in the investment. Given the following advertisements of funds, which fund is...
Mr X has 50,000 dollar in a bond fund and expects that every year he will...
Mr X has 50,000 dollar in a bond fund and expects that every year he will be able to save and add 12,000 dollars to the bond fund. Assuming that the bond fund will give 7% return per year, how much money will he have by the time of retirement (12 years).
Jason believes that the sales of coffee at his coffee shop depend upon the weather. He...
Jason believes that the sales of coffee at his coffee shop depend upon the weather. He has taken a sample of 6 days varying in degrees of temperature. Below you are given the results of the sample. Cups of Coffee Sold Temperature (in ⁰F) 350   50 200   60 220   70 110   80   65   90   40 100 ​ a. In this scenario, the dependent variable is . b. The least squares estimated regression equation is . c. The correlation coefficient (to...
Jason believes that the sales of coffee at his coffee shop depend upon the weather. He...
Jason believes that the sales of coffee at his coffee shop depend upon the weather. He has taken a sample of 6 days. Below you are given the results of the sample. Cups of Coffee Sold Temperature (in ⁰F) 350 50 200 60 210 70 100 80 60 90 40 100 a. Compute the least squares estimated regression equation. b. Is there a significant relationship between the sales of coffee and temperature? Use a t test and a .05 level...
Jason believes that the sales of coffee at his coffee shop depend upon the weather. He...
Jason believes that the sales of coffee at his coffee shop depend upon the weather. He has taken a sample of 5 days. Below you are given the results of the sample. Cups of Coffee Sold Temperature 700 50 500 60 400 70 200 80 100 90 Now we are going to conduct a hypothesis test to see if there is a significant relationship between sales of coffee and temperature. The hypotheses are: H 0 ; β 1 = 0...
Tensing Palmo expects to receive $8,326 on his birthday 7 years from now. He knows he...
Tensing Palmo expects to receive $8,326 on his birthday 7 years from now. He knows he could earn 0.0583 on an investment for 7 years. The present value of this money is:
You are to receive an end-of-year bonus of $50,000 increasing by $1000 for each of the...
You are to receive an end-of-year bonus of $50,000 increasing by $1000 for each of the next ten years. If MARR is 12% and inflation rate is anticipated to be 2%, what will be purchasing power?
David purchased an immediate annuity with a single $50,000 premium payment. He elects to receive income...
David purchased an immediate annuity with a single $50,000 premium payment. He elects to receive income payments on a quarterly basis. When will his income begin? (Search Chapter 3) a. in one month b. in three months c. in six months d. in one year 22. Nikki purchased a fixed deferred annuity with a $10,000 premium payment. The contract offers a one-time bonus feature of 4 percent. Which of the following statements is true? (Search Chapter 3) a. The insurer...
Tom wishes to buy another boat in five years that presently costs $150,000. He expects the...
Tom wishes to buy another boat in five years that presently costs $150,000. He expects the cost of the boat to increase due to inflation by 3% per year for the next two years and 5% per year the following three years. He also wants to spend $75,000 per year for 6 years beginning at the end of 12 years from today. How much must he save each year for the next 5 years if he can earn 6% on...
Selyn Cohen is 63 years old and recently retired. He wishes to provide retirement income for...
Selyn Cohen is 63 years old and recently retired. He wishes to provide retirement income for himself and is considering an annuity contract with the Philo Life Insurance Company. Such a contract pays him an equal-dollar amount each year that he lives. For this cash-flow stream, he must put up a specific amount of money at the beginning. According to actuary tables, his life expectancy is 15 years, and that is the duration on which the insurance company bases its...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT