Question
In: Accounting
You've bought an inflation-adjusted annuity to give you a constant real income during your retirement years....
You've bought an inflation-adjusted annuity to give you a constant real income during your retirement years. The annuity will make 20 annual payments. The first payment of $80,000 will occur one year from now, and annual payments will increase at the rate of inflation, 4%, for 19 years and then stop. The interest rate is 8%.
What is the present value of these cash flows?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
An insurance company is trying to sell you a retirement annuity. The annuity will give you...
An insurance company is trying to sell you a retirement annuity.
The annuity will give you 20 payments with the first payment in 12
years when you retire. The insurance firm is asking you to pay
$50,000 today. If this is a fair deal, what must the payment amount
be (to the dollar) if the interest rate is 8 percent?
please show in excel
Income Needed During Retirement $90,000 Number of Years in Retirement 30 Number of Year Before Retirement...
Income Needed During Retirement $90,000 Number of Years in
Retirement 30 Number of Year Before Retirement 20 Rate of Return
During Retirement 4.50% Rate of Return Before Retirement 7.50%
Inflation Before and During Retirement 3% A. How much should your
client save per year in order to meet their required funds for
retirement? Calculate for both an annuity and annuity due.
Your retirement is 20 years away and you are interested in saving for your retirement. You...
Your retirement is 20 years away and you are interested in
saving for your retirement. You expect another fifteen years to
live after retirement. You think you will need 60,000 dollars every
year to live post retirement. You have to estimate how much you
should save annually if
You expect a rate of return of 8% for the next 35 years,
and
You expect to earn 9% for the next 20 years. At retirement you
put your money in an...
12. You plan to save for your retirement during the next 30 years. To do this,...
12. You plan to save for your retirement during the next 30
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When you retire, you will combine your money in an account with a
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How do you believe your spending patterns would change during your retirement years
How do you believe your spending patterns would change during
your retirement years
How do you believe your spending patterns would change during your retirement years
How do you believe your spending patterns would change during
your retirement years
You decide to replace your income of $70,000 a year in retirement for 30 years. How...
You decide to replace your income of $70,000 a year in
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account the day you retire to make that happen, assuming a real
interest rate of 3%?
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
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How many years can you live off your retirement account after you
retire?
You begin saving for your retirement through an ordinary annuity that is deposited into a mutual...
You begin saving for your retirement through an ordinary annuity
that is deposited into a mutual fund over the next 30 years (30
payments in total). Assume you leave your funds in this mutual fund
throughout your lifetime and it earns 12% per year. Once you retire
you expect to live for an additional 25 years. In retirement you
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How much must you deposit into...
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
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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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