Question
In: Finance
Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living...
Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $100,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 10% annually.
- What amount do you need in your retirement account the day you
retire? Do not round intermediate calculations. Round your answer
to the nearest cent.
$
- Assume that your first withdrawal will be made the day you
retire. Under this assumption, what amount do you now need in your
retirement account the day you retire? Do not round intermediate
calculations. Round your answer to the nearest cent.
$
You do not have to show work. Thanks
Solutions
jeff jeffy answered 5 hours agoRelated Solutions
A month from now, you plan to begin saving for your retirement by making a deposit...
A
month from now, you plan to begin saving for your retirement by
making a deposit into a new savings account that has an expected
return of 5% compounded monthly. You plan to continue depositing
the same amount each month until you retire in 35 years. You expect
to make withdrawals in the amount of $15,000 from your savings
account every year for 40 years after you retire. Assume you were
asked to find the amount you will need to...
Suppose that you are 23 years old, and making retirement plans. You are starting to contribute...
Suppose that you are 23 years old, and making retirement plans.
You are starting to contribute $550 per month to your retirement
account at the beginning of each month. You intend to do so until
the age of sixty three and then stop the contributions. You will
retire at age 67. You receive a 6.5% APR compounded monthly on your
account. Starting at age 67, what could you withdraw in terms of a
monthly annuity until age 99 assuming you...
Suppose that you are 25 years old, and making retirement plans. You are starting to contribute...
Suppose that you are 25 years old, and making retirement plans.
You are starting to contribute $600 per month to your retirement
account at the beginning of each month. You intend to do so until
the age of sixty seven and then stop the contributions. You will
retire at age 70. You receive a 7% APR compounded monthly on your
account. What could you withdraw in terms of a monthly
perpetuity?
Group of answer choices
<
$12800
> $13400
$12800-$13000...
Suppose that you are 21 years old, and making retirement plans. You are starting to contribute...
Suppose that you are 21 years old, and making retirement plans.
You are starting to contribute $800 per month to your retirement
account at the beginning of each month. You intend to do so until
the age of sixty three and then stop the contributions. You will
retire at age 67. You receive a 5% APR compounded monthly on your
account. How much will you have if you allow interest to accrue to
age 67? (K means 1,000's)
Group of...
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?
Retirement Plans A defined benefit plan, most often known as a pension, is a retirement account...
Retirement Plans
A defined benefit plan, most often known as a
pension, is a retirement account for which your employer ponies up
all the money and promises you a set payout when you retire.
A defined contribution plan, like a 401(k) or
403(b), requires you to put in your own money.
Annuity: An annuity is a contract between you
and an insurance company in which you make a lump sum payment or
series of payments and in return obtain regular...
When referring to retirement plans the term "qualified" means that the plan
When referring to retirement plans the term "qualified"
means that the
plan ____
Is provided by an employer that is granted a "good
employer" award by the Department of
Health & Human
Services.
Satisfies the requirements of one or more provision(s)
of the Internal Revenue Code.
Provides benefits only for highly compensated
employees.
Provides benefits only for employees who are not highly
compensated.
Under the law governing qualified pension plans, which
of the following are the most restrictive
age ____
and service...
You plan to start regular savings for retirement. You have been offered 3 different savings plans...
You plan to start regular savings for retirement. You have been
offered 3 different savings plans by a financial institution.
Option 1: You will deposit $600 at the end of each month for the
next 20 years. The nominal interest rate is 12% per annum
compounded monthly. a) Calculate the future value of your savings
immediately after the last deposit. (1 mark) b) To help you, your
parents will deposit a bonus of $1100 into your savings account at
the...
You plan to start regular savings for retirement. You have been offered 3 different savings plans...
You plan to start regular savings for retirement. You
have been offered 3 different savings plans by a financial
institution.
Option 1: You will deposit $600 at the end of each
month for the next 20 years. The nominal interest rate is 12% per
annum compounded monthly.
a) Calculate the future value of your savings immediately after the
last deposit. (1 mark)
b) To help you, your parents will deposit a bonus of
$1100 into your savings account at the...
In planning for your retirement, you are considering the various CPF LIFE annuity plans. For the...
In planning for your retirement, you are considering the various
CPF LIFE annuity plans. For the Basic Retirement Plan (BRP), the
sum required upfront is $85,500 and it pays out $750 monthly for as
long as you live. Alternatively, the Enhanced Retirement Plan (ERP)
requires a sum of $256,500 and the monthly payout is $2,000. For
both annuity plans, interest earned is 4% per annum and payout is
made at the end of each month when you turn 65.
To...
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