I want to retire in 40 years. When I retire, I want to withdraw $20,000 every...

I want to retire in 40 years. When I retire, I want to withdraw $20,000 every 6 months from my savings for a period of 10 years. However, at the end of years two and three in my retirement, I will need to spend $40,000 and $60,000 respectively to send my grandson to culinary school. Assuming I can earn 4% compounded semi-annually, answer the following question:

How much money will I need at year 40 to fund sending my grandson to culinary school?

Solutions

Expert Solution

Please Upvote

Thanks

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

A couple will retire in 40 years; they plan to withdraw $39,000 a year in retirement,...

A couple will retire in 40 years; they plan to withdraw $39,000 a year in retirement, and they will make 20 withdraw. They believe that they can earn 8% interest on the retirement savings. - If they make annual deposit into their retirement savings, how much will they need to save each year? Assume the first deposit comes at the end of the first year, and the first withdraw comes at the end of year 41.

Rob and Laura wish to retire in 25 years. They want to be able to withdraw...

Rob and Laura wish to retire in 25 years. They want to be able to withdraw $40,000 per year in today’s dollars during retirement. They expect to earn 8% during their saving years and a 2% real return during their retirement. They expect to live 30 years after retirement, hence making 30 annual withdrawals. Inflation will average 3% per year. a) What is the value of their first withdrawal in 26 years? b) How much do they have to have...

1- ) You want to have $3 million when you retire in 40 years. If you...

1- ) You want to have $3 million when you retire in 40 years. If you can earn 12% per year, how much do you need to deposit on a monthly basis if the first payment is made in one month? 2- ) What if the first payment is made today? 3- ) You are considering ABC’s preferred stock that is expected to pay a quarterly dividend of $1.00 forever. If your desired return is 10% per year, how much...

11.You want to be a millionaire when you retire in 40 years. a. How much do...

11.You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an annual return of 9.7 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much do you have to save each month if you wait 10 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places,...

You want to be able to withdraw $20,000 from your account each year for 15 years...

You want to be able to withdraw $20,000 from your account each year for 15 years after you retire. You expect to retire in 30 years. If your account earns 9% interest, how much will you need to deposit each year until retirement to achieve your retirement goals? $ __________________________ Round your answer to the nearest cent.

You want to be able to withdraw $20,000 from your account each year for 30 years...

You want to be able to withdraw $20,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 6.8% interest while saving for retirement and 4.4% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

you will work for 40 years then you will retire. when yiu retire, you will make...

you will work for 40 years then you will retire. when yiu retire, you will make the first of 40 annual investments of $7549 in a fund. the fund is expected to return 9.9% per year, how much will you have on the day that you make your last deposit?

You plan to retire in 40 years. After that, you want to receive an annuity of...

You plan to retire in 40 years. After that, you want to receive an annuity of 5000 per month for 25 years, beginning immediately upon retirement. If you can earn 6% per year, compounded monthly, how much must you invest at the end of each month before retirement?

I plan to retire in 40 years and live 30 years after retiring.•After retirement I...

I plan to retire in 40 years and live 30 years after retiring. •After retirement I want to be able to withdraw $30,000 each year. •The annual interest rate is 8%.•How much do I need to save each year in the next 40 years? How would you do this on a BAII Plus Calculator?

Suppose you plan to retire at age 70, and you want to be able to withdraw...

Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $80,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 6% per year simple interest, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar.) Hint: This can be solved as a 30-year ordinary...

Subjects