Question
In: Finance
Both John and Mary are aged 20 now. John plans to contribute $168 per month in...
Both John and Mary are aged 20 now. John plans to contribute $168 per month
in advance into his superannuation fund for 20 years and stop contributing thereafter.
Mary plans to start contributing $336 per month in advance into her superannuation fund
at her 40th birthday until she retires.
They both plan to retire at age 60.
If the annual rate of return is 12.80%, what are the accumulated values of their
superannuation accounts at retirement?
Assume: NO fees, NO tax.
Solutions
Expert Solution
| John'savings | ||||||||||||
| Future value of contribution of John at age 40 | $14,985.59 | (using FV function of excel with Rate=12.8%, Nper=20, Pmt=168, Type=1(beginning of year payment) | ||||||||||
| Value of investment after 20 years(at age 60) | $ 166,669.39 | (14985.59*((1+0.128)^20)) | ||||||||||
| Mary's Savings | ||||||||||||
| Future value of contribution of Mary at age 60 | $29,971.17 | (using FV function of excel with Rate=12.8%, Nper=20, Pmt=336, Type=1(beginning of year payment) | ||||||||||
| John | Mary | |||||||||||
| Accumulated values at retirement | $ 166,669.39 | $29,971.17 | ||||||||||
|
|
||||||||||||
jeff jeffy answered 3 months agoRelated Solutions
Both John and Mary are aged 20 now. John plans to contribute $100 per month in...
Both John and Mary are aged 20 now. John plans to contribute
$100 per month in advance into his superannuation fund for 20 years
and stop contributing thereafter. Mary plans to start contributiing
$200 per month in advance into her superannuation fund at her 40th
birthday until she retires. They both plan to retire at age 60. If
the annual rate of return is 06.00%, what are the accumulated
values of their superannuation accounts at retirement?
Question: Both John and Mary are aged 20 now. John plans to contribute $100 per month...
Question: Both John and Mary are aged 20 now. John plans to
contribute $100 per month in advance into his s... Both John and
Mary are aged 20 now. John plans to contribute $100 per month in
advance into his superannuation fund for 20 years and stop
contributing thereafter. Mary plans to start contributiing $200 per
month in advance into her superannuation fund at her 40th birthday
until she retires. They both plan to retire at age 60. If the...
Assume that you contribute $260 per month to a retirement plan for 20 years. Then you...
Assume that you contribute $260 per month to a retirement plan
for 20 years. Then you are able to increase the contribution to
$460 per month for the next 30 years. Given a 6.0 percent interest
rate, what is the value of your retirement plan after the 50 years?
(Do not round intermediate calculations and round your final answer
to 2 decimal places.)
Assume that you contribute $260 per month to a retirement plan for 20 years. Then you...
Assume that you contribute $260 per month to a retirement plan
for 20 years. Then you are able to increase the contribution to
$520 per month for another 30 years. Given a 7.2 percent interest
rate, what is the value of your retirement plan after the 50
years?
Dave is going to contribute $200 per month on the first day of each month into...
Dave is going to contribute $200 per month on the first day of
each month into a retirement account starting today for 30 years.
If Dave can earn a monthly rate of 0.5%, the amount he will he have
in his retirement account 40 years from now is closest to what
value? Yes, you heard me right, Dave is making monthly payments for
30 years (at the beginning of each year), but no payments are made
for the last 10...
John, a professor and his wife, Mary, a nurse, residence of Georgia both work in Alabama....
John, a professor and his wife, Mary, a nurse, residence of
Georgia both work in Alabama. They return to Georgia on weekends
where they have their permanent homes. Identify and discuss the
sources of tax law applicable to John and Mary taking into
account the fact that they are operating in more than one U.S.
state (Georgia and Alabama).
Can you please help to elaborate a statement regarding this case
of taxes.
Retirement planning. Both John and Jane have $10,000 which they will contribute to their new RRSPs...
Retirement planning.
Both John and Jane have $10,000 which they will contribute to
their new RRSPs on their 31st birthdays. From then on,
they will contribute to their RRSPs until they are each 71. John
and Jane will receive their first payments on their (respective)
71st birthdays. Each wish to receive a payment of $10,000 per month
until they die. Supposing that their RRSPs earn 12% compounded
monthly, what is John’s monthly contribution if he plans to live
until 91?...
John and Mary, who make $50,000 per year, calculated their average tax rate at 15 percent....
John and Mary, who make $50,000 per year, calculated their
average tax rate at 15 percent. They contribute 12 percent of their
income to charity and pay themselves 10 percent of their income.
They have a fixed 6%, $100,000 mortgage with 25 years to maturity,
a 3 years $20,000 auto-loan at a fixed 7% rate, and a $10,000, 10
years to maturity and 3% fixed rate college loan. In addition,
utilities and property taxes were $2,270 per year, food was...
1. Suppose Mary has an income of $315 per month and eats out for $15 a...
1. Suppose Mary has an income of $315 per month and eats out for
$15 a dinner and sees movies at a cost of $9 per movie.
a.Explain why you do not need to graph her budget constraint to
determine the slope, given the information above. What is the value
of the slope of the budget constraint?
b.Suppose Mary finds a new job and now makes $360 per month.
However, her local movie theater raises ticket prices to $12. Draw...
John Wayne is 50 years old and plans to retire in 20 years. His new employer...
John Wayne is 50 years old and plans to retire in 20 years. His
new employer provides 401K retirement plan and he plans to
accumulate $1,000,000 in his retirement account by age of 70. Use
Excel to answer the following questions.
How much he has to contribute per year at return of 7% per year
to reach his retirement goal.
Redo part (a) if john decides to increase his contribution
0.50% per year over 20 years.
c.Redo part (a) if...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
- NPV Your division is considering two projects with the following cash flows (in millions): 0...
- The equivalent synchronous impedance of a 25kVA, 400V three-phase Y-connected synchronous generator is 0.05 + j1.6...
ADVERTISEMENT