Question
In: Finance
DeMarcus wants to retire with $1 million in savings by the time he turns 70. He...
DeMarcus wants to retire with $1 million in savings by the time he turns 70. He is currently 18 years old. How much will he need to save each year, assuming he can get a 9% annual return on his investments?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Demarcus wants to retire with 1 million in savings by the time he turns 65 he...
Demarcus wants to retire with 1 million in savings by the time he
turns 65 he is currently 18 years old how much will he need to save
each year assuming that he can get 12% annual return on his
investment
An individual wants to retire in 25 years. At that time (s)he wants to be able...
An individual wants to retire in 25 years. At that time (s)he
wants to be able to withdraw $2500 per month to cover living
expenses. This individual has an expectation that (s)he
will live 25 years after the date of retirement.
The interest rate is 6% per year.
This individual has assumed that:
The interest rate is constant over
time True False
The expected time frames are 25
years True False
There are no additional risks to be
considered True False
There is money left over 50...
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00.
Derek plans to retire on his 65th birthday. However, he plans
to work part-time until he turns 70.00. During these years of
part-time work, he will neither make deposits to nor take
withdrawals from his retirement account. Exactly one year after the
day he turns 70.0 when he fully retires, he will wants to have
$3,313,723.00 in his retirement account. He he will make
contributions to his retirement account from his 26th birthday to
his 65th birthday. To reach his...
1. Your father is about to retire, and he wants to buy an investment that will...
1. Your father is about to retire, and he wants to buy an
investment that will provide him with $100,000 of income per year
for 20 years, beginning a year from today. In addition, on the 20th
anniversary (when the last payment of $100,000 occurs), he wants to
withdraw a lumpsum of $250,000 (in addition to the last receipt
of$100,000). The going rate on such annuities is 4.0%. How much
would it cost him to buy such an annuity today...
Elin wants to retire in 20 years when she turns 60. Elin wants to have enough...
Elin wants to retire in 20 years when she turns 60. Elin wants
to have enough money to replace 120% of her current income less
what she expects to receive from Social Security. She expects to
receive $20,000 per year from Social Security in today’s dollars.
Elin is conservative and wants to assume a 6% annual investment
rate of return and assumes that inflation will be 3% per year.
Based on her family history, Elin expects that she will live...
Your uncle has $320,000 invested at 7.5%, and he now wants to retire. He wants...
Your uncle has $320,000 invested at 7.5%, and he now wants to
retire. He wants to withdraw $35,000 at the end of each year,
starting at the end of this year. He also wants to have $25,000
left to give you when he ceases to withdraw funds from the account.
For how many years can he make the $35,000 withdrawals and still
have $25,000 left in the end?
a.
12 years
b.
16 years
c.
15 years
d.
17...
Charlie wants to retire in 15 years, and he wants to have an annuity of $50,000...
Charlie wants to retire in 15 years, and he wants to have an
annuity of $50,000 a year for
20 years after retirement. Charlie wants to receive the fist
annuity payment the day he
retires. Using an interest rate of 8%, how much must Charlie invest
today in order to have his
retirement annuity
Charlie wants to retire in 15 years, and he wants to have an annuity of $40,000...
Charlie wants to retire in 15 years, and he wants to have an
annuity of $40,000 a year for 20 years after retirement. Charlie
wants to receive the first annuity payment at the end of the year
during his retirement period. Using an interest rate of 5% for both
savings and retirement periods, how much must Charlie invest today
in order to have his retirement annuity? (Round your answer to the
nearest dollar).
Your client John Smith is 45. He wants to retire at the age of 55. He...
Your client John Smith is 45. He wants to retire at the age of
55. He plans to sell his business sometime in the next five years
and he is considering using the $100,000 proceeds from the sale to
purchase an annuity.
Explain to your client what an annuity does.
Under what set of circumstances would the annuity be desirable
to Smith?
If the annuity is purchased, what features should it have with
respect to guarantees?
If Mr. Smith does...
Your client John Smith is 45. He wants to retire at the age of 55. He...
Your client John Smith is 45. He wants to retire at the age of
55. He plans to sell his business sometime in the next five years
and he is considering using the $100,000 proceeds from the sale to
purchase an annuity.
Explain to your client what an annuity does.
Under what set of circumstances would the annuity be desirable
to Smith?
If the annuity is purchased, what features should it have with
respect to guarantees?
If Mr. Smith does...
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