Wants to be able to withdraw $80,000 per year at the end of each year from...

Wants to be able to withdraw $80,000 per year at the end of each year from his retirement account for 30 years after he retires. Assuming a 7% annual compound interest rate, what is the minimum amount Mr. Smith must-have in this account when he retires?

Please indicate what you entered into your calculator to solve these problems.

Expert Solution

Present value of annuity = Annuity amount * PVAF (rate of interest, number of years )

= 80,000 * PVAF(7%, 30)

= 80,000 * [ 1/1.07 + 1/1.07² + ....... + 1/1.07³⁰ ]

= 80,000 * 12.4090

= $ 992,723.30 Answer

jeff jeffy answered 2 years ago

1.A woman wants to withdraw $80,000 per year for the next 30 years. Her retirement funds...

1.A woman wants to withdraw $80,000 per year for the next 30 years. Her retirement funds will be invested in assets that are expected to earn an annual rate of return of 6%. Assume her first withdraw comes one year after her date of retirement. How much money does she need in her retirement fund on her retirement date. 1b. It is 50 years prior to her retirement date. Starting one year from today, she plans to begin funding her...

You want to be able to withdraw $30,000 from youraccount each year for 25 years...

You want to be able to withdraw $30,000 from your account each year for 25 years after you retire. If you expect to retire in 20 years and your account earns 6.1% interest while saving for retirement and 5% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?$ c) How much did you...

You want to be able to withdraw $40,000 from your account each year for 15 years...

You want to be able to withdraw $40,000 from your account each year for 15 years after you retire. If you expect to retire in 25 years and your account earns 7.6% interest while saving for retirement and 6.9% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

You want to be able to withdraw $45,000 from your account each year for 30 years...

You want to be able to withdraw $45,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 7.9% interest while saving for retirement and 7.8% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

You want to be able to withdraw $50,000 from your account each year for 20 years...

You want to be able to withdraw $50,000 from your account each year for 20 years after you retire. If you expect to retire in 30 years and your account earns 5% interest while saving for retirement and 4.1% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

20. You want to be able to withdraw $25,000 from your account each year for 30...

20. You want to be able to withdraw $25,000 from your account each year for 30 years after you retire. If you expect to retire in 15 years and your account earns 7.4% interest while saving for retirement and 5.3% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement...

You want to be able to withdraw $20,000 from your account each year for 15 years...

You want to be able to withdraw $20,000 from your account each year for 15 years after you retire. You expect to retire in 30 years. If your account earns 9% interest, how much will you need to deposit each year until retirement to achieve your retirement goals? $ __________________________ Round your answer to the nearest cent.

You want to be able to withdraw $20,000 from your account each year for 30 years...

You want to be able to withdraw $20,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 6.8% interest while saving for retirement and 4.4% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

You want to be able to withdraw $35,000 from your account each year for 15 years...

You want to be able to withdraw $35,000 from your account each year for 15 years after you retire. If you expect to retire in 30 years and your account earns 7.8% interest while saving for retirement and 6% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

You want to be able to withdraw $35,000 from your account each year for 20 years...

You want to be able to withdraw $35,000 from your account each year for 20 years after you retire. If you expect to retire in 15 years and your account earns 5.8% interest while saving for retirement and 4.7% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

Question