Question

In: Finance

Suppose that you just turned 25 years old and that you wish to receive an annual...

Suppose that you just turned 25 years old and that you wish to receive an annual annuity of $63,282 for 30 years (end of each year age 65-95). How much would you have to contribute annually at the end of each year ages 25-60 , if you then let the funds vest until age 65 with no further contributions? Your EAR is 8.7%.

Solutions

Expert Solution


Related Solutions

Suppose that you just turned 25 years old and that you wish to receive a monthly...
Suppose that you just turned 25 years old and that you wish to receive a monthly ordinary annuity of $9,302 for 30 years (ages 65-95, end of month payments). How much would your monthly contributions also be at the end of each month until age 60, if you let the funds vest until age 65 with no further contributions? Your EAR is 6.0%?
Suppose that you just turned 25 years old and that you wish toreceive an annual...
Suppose that you just turned 25 years old and that you wish to receive an annual annuity of $76,697 for 30 years (end of each year age 65-95). How much would you have to contribute annually at the end of each year ages 25-60 , if you then let the funds vest until age 65 with no further contributions? Your EAR is 5.2%.
Suppose that you just turned 25 years old and decide to put $5,109 into investments at...
Suppose that you just turned 25 years old and decide to put $5,109 into investments at the end of each year until age 60 (35 years from now). You have no savings. Your EAR is 6.2%. How much will you have by age 60?
Suppose that you just turned 25 years old and decide to put $5,750 into investments at...
Suppose that you just turned 25 years old and decide to put $5,750 into investments at the end of each year until age 60 (35 years from now). You have no savings. Your EAR is 4.7%. How much will you have by age 60?
You have just turned 25 years old and decide to start saving for your retirement. You...
You have just turned 25 years old and decide to start saving for your retirement. You plan to save $5,000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire when you turn 65 (that is, 40 deposits in total. Suppose your pension fund earns 8% per year on your retirement savings. a) How much will you have saved for retirement by the time you...
You have just turned 25 years old, and accepted a job offer. Now you must decide...
You have just turned 25 years old, and accepted a job offer. Now you must decide how much money to put into your retirement plan. The plan works as follows: Every dollar in the plan earns 8% per year. You cannot make withdrawals until you retire on your 60 th birthday. After that, you can make withdrawals as you see fit. You estimate that to live comfortably in retirement, you will need $80,000 per year, starting at the end of...
Suppose that you just turned 25, plan to retire at 65, and estimate that you will...
Suppose that you just turned 25, plan to retire at 65, and estimate that you will need $10,141 per month at the end of each month upon retirement for the next 30 years. How much do you need to contribute at the end of each month until you reach age 60? Assume your estimated return is 8.5% EAR, that you have $10,000 already invested, and the funds will continue to earn interest to age 65, even though you will not...
Suppose that you just turned 25, plan to retire at 65, and estimate that you will...
Suppose that you just turned 25, plan to retire at 65, and estimate that you will need $9,471 per month at the end of each month upon retirement for the next 30 years. How much do you need to contribute at the end of each month until you reach age 50? Assume your estimated return is 6.2% EAR, that you have $10,000 already invested, and the funds will continue to earn interest to age 65, even though you will not...
Suppose you are now 25 years old and just accepted a job offer. You would like...
Suppose you are now 25 years old and just accepted a job offer. You would like to save for retirement, but not sure how much you must set aside. Your new employer offers a retirement plan that provides 5% return per year. The plan does not allow withdrawals before the age of 62. You plan to retire at the age 62. You expect that your life expectancy is 80 years. You believe that that you will need $110,000 per year,...
Problem 39: You have just turned 30 years old, have just received your MBA, and have...
Problem 39: You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money to put into your RRSP. Your RRSP works as follows: Every dollar in the plan earns 7% per year. You cannot make withdrawals until your 65th birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT