20. Assume that you just graduate and get a job. You will work for 40 years...

20. Assume that you just graduate and get a job. You will work for 40 years and save each year before you retire. During retirement you plan to receive a pension annuity of $100,000 each year for another 40 years. How much money will you need to have at the moment you retire? How much money do you need to save every year before retirement? Assume the interest rate is always 8%. Before retirement, you deposit your saving at the end of each year. During retirement, you receive the annuity at the beginning of each year.

Please using excel function to solve this

rate, nper, pmt, pv, fv

Solutions

Expert Solution

Hence, Amount required after 40 years was $1,192,461.33

Hence, Deposit for each of the next 40 years was $4,603.09

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Assume that you have 40 years until retirement and have just started your first job. Once...

Assume that you have 40 years until retirement and have just started your first job. Once you retire, you anticipate that you will live for 30 additional years. Assume that you will require $100,000 per year to support yourself in retirement. All investments that you make will go into and stay an account that returns 7.8% per year (however much you have at retirement will sit that account and continue to accrue interest on the remaining balance. How much will...

Consider that you are 40 years old and have just changed to a new job. You...

Consider that you are 40 years old and have just changed to a new job. You have $141,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new employer. You will also contribute $6,300 each year into your new employer’s plan. If the rolled-over money and the new contributions both earn an 7 percent return, how much should you expect to have when you retire in 25 years? (Do...

You've just been hired at a new job. You expect to work there for 5 years....

You've just been hired at a new job. You expect to work there for 5 years. Your boss offers you a hiring bonus of either $2,728 today, or an additional $35 per month, starting next month, on your salary. If your investments earn 2.75% APR (compounded monthly), how much would you gain or lose by taking the cash-bonus today? If you would lose money, indicate your answer with a negative number.

You've just been hired at a new job. You expect to work there for 3 years....

You've just been hired at a new job. You expect to work there for 3 years. Your boss offers you a hiring bonus of either $3,722 today, or an additional $26 per month, starting next month, on your salary. If your investments earn 4.91% APR (compounded monthly), how much would you gain or lose by taking the cash-bonus today? If you would lose money, indicate your answer with a negative number.

You've just been hired at a new job. You expect to work there for 4 years....

You've just been hired at a new job. You expect to work there for 4 years. Your boss offers you a hiring bonus of either $2,986 today, or an additional $48 per month, starting next month, on your salary. If your investments earn 3.81% APR (compounded monthly), how much would you gain or lose by taking the cash-bonus today? If you would lose money, indicate your answer with a negative number.

You've just been hired at a new job. You expect to work there for 3 years....

You've just been hired at a new job. You expect to work there for 3 years. Your boss offers you a hiring bonus of either $2,071 today, or an additional $28 per month, starting next month, on your salary. If your investments earn 4.05% APR (compounded monthly), how much would you gain or lose by taking the cash-bonus today? If you would lose money, indicate your answer with a negative number.

You've just been hired at a new job. You expect to work there for 4 years....

You've just been hired at a new job. You expect to work there for 4 years. Your boss offers you a hiring bonus of either $3,999 today, or an additional $46 per month, starting next month, on your salary. If your investments earn 3.62% APR (compounded monthly), how much would you gain or lose by taking the cash-bonus today? If you would lose money, indicate your answer with a negative number.

Assume that you have just been hired to work for a chemical company. Your first job...

Assume that you have just been hired to work for a chemical company. Your first job is to collect a sample from a railroad boxcar full of of soda ash for chemical analysis. Look up in the ASTM procedure in the lilbrary and quote the procedure. It is one sentence. Give full literature citation.

Korra is 40 years old and Sokka is 20 years old. Both work in the same...

Korra is 40 years old and Sokka is 20 years old. Both work in the same position in the same company and have been laid off permanently. If they enroll together in the same college, to study the same. Given the human capital model, do they have the same net value present?

After you graduate, you plan to work for another twenty years and then retire and move...

After you graduate, you plan to work for another twenty years and then retire and move to a low-cost area. You think you can save $2500 a year for the first 5 years, and $3500 a year for the next 10 years, and $6000 a year for the last 5 years. If you can earn 3.5% a year on your savings in a reasonably safe investment, how much will you have from these savings when you retire?

Subjects