Question
In: Finance
Assume that Social Security promises you $45,000 per year starting when you retire 45 years from...
Assume that Social Security promises you $45,000 per year starting when you retire 45 years from today? (the first $45,000 will get paid 45 years from? now). If your discount rate is 7 % compounded? annually, and you plan to live for 17 years after retiring? (so that you will receive a total of 18 payments including the first? one), what is the value today of Social? Security's promise?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You will need $100,000 per year for 25 years starting in year 45. You are able to...
You will need $100,000 per year for 25 years starting
in year 45. You are able to save
$3000 per year from year 3 to year 15, inclusive. How
much must you save from years 16 through 37, inclusive, if
interest rates will be 4% from years 0 through the end of year
25 and 7% starting at the beginning of year 26 and
on? Solve for the unknown payments:
Please show work: I do not understand my professors work
An investment promises to pay you $700 per year starting immediately. The cash flow from the...
An investment promises to pay you $700 per year starting
immediately. The cash flow from the investment is expected to
increase by 3 percent per year forever. If alternative investments
of similar risk earn a return of 8 percent per year, determine the
maximum you would be willing to pay for the investment.
(Round answer to 2 decimal places, e.g. 125.12. Do not
round your intermediate calculations.)
When you retire, your company promises to pay you $1500 a month for 25 years. What...
When you retire, your company promises to pay you $1500 a month
for 25 years. What is the value of this retirement annuity to you
today, assuming 3%?
Will social security exist in 45 years? Why or why not? Describe how Social Security has...
Will social security exist in 45 years? Why or why not? Describe
how Social Security has been one of the three legs of retirement
planning.
You plan to retire in year 20 Your retirement will last 25 years starting in year...
You plan to retire in year 20
Your retirement will last 25 years starting in year 21
You want to have $50,000 each year of your retirement.
How much would you have to invest each year, starting in one year,
for 15 years , to exactly pay for your retirement ,if your
investments earn 6.00% APR (compounded annually)?
You plan to retire in year 20 Your retirement will last 25 years starting in year...
You plan to retire in year 20
Your retirement will last 25 years starting in year 21
You want to have $50,000 each year of your retirement.
How much would you have to invest each year, starting in one year,
for 15 years , to exactly pay for your retirement ,if your
investments earn 6.00% APR (compounded annually)?
Answers:
$21,349
$21,546
$20,930
$20,520
You plan to retire in year 20 Your retirement will last 25 years starting in year...
You plan to retire in year 20 Your retirement will last 25 years
starting in year 21 You want to have $50,000 each year of your
retirement. How much would you have to invest each year, starting
in one year, for 15 years , to exactly pay for your retirement ,if
your investments earn 6.00% APR (compounded annually)? a. 21.,349
b. 21, 546 c. 20,520 d. 20,930
Assume you are now 25 years old. You plan to retire when you are 65 years...
Assume you are now 25 years old. You plan to retire when you are
65 years old. You think you will live until you are 80 years.
a.) If the rate of return during your working years (a.k.a. the
"savings period") is 8% and you plan to save $2,000 per year, how
much will you have saved up by retirement age?
b.) If the rate of return during your retirement is 6% on the
amount of savings you have accumulated,...
Assume that you are 30 years old and expect to retire when you reach 65. If...
Assume that you are 30 years old and expect to retire when you
reach 65. If you were to retire today, you would like a fixed
(pretax) income of 60,000 per year (in addition to the social
security) for a period of 15 years ( your approximate life
expectancy at age 65). However you realized that price inflation
will erode the purchasing power of the dollar over the next 35
years and you want to adjust your desired retirement income...
You are 40 years old and want to retire at age 65. Each year, starting one...
You are 40 years old and want to retire at age 65. Each year,
starting one year from now, you will deposit an equal amount into
an investment account that pays 4% interest. The last deposit will
be on your 65th birthday. On your 65th birthday, you will switch
the accumulated savings into a safer bank account that pays only
4.2% interest. You will withdraw your annual income of $110,000 at
the end of that year (on your 66th birthday)...
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