Question

In: Finance

A couple will retire in 40 years; they plan to withdraw $39,000 a year in retirement,...

A couple will retire in 40 years; they plan to withdraw $39,000 a year in retirement, and they

will make 20 withdraw. They believe that they can earn 8% interest on the retirement

savings.

- If they make annual deposit into their retirement savings, how much will they need to save

each year? Assume the first deposit comes at the end of the first year, and the first withdraw

comes at the end of year 41.

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with formula, let me know, will do that also. Thank you.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

A couple will retire in 40 years; they plan to spend about $37,000 a year in...
A couple will retire in 40 years; they plan to spend about $37,000 a year in retirement, which should last about 20 years. They believe that they can earn 7% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How would the answer to part...
A couple will retire in 40 years; they plan to spend about $35,000 a year in...
A couple will retire in 40 years; they plan to spend about $35,000 a year in retirement, which should last about 20 years. They believe that they can earn 9% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual Savings = b. How would the...
I plan to retire in 40 years and live 30 years after retiring.•After retirement I...
I plan to retire in 40 years and live 30 years after retiring. •After retirement I want to be able to withdraw $30,000 each year. •The annual interest rate is 8%.•How much do I need to save each year in the next 40 years? How would you do this on a BAII Plus Calculator?
3. You plan to retire in 40 years. Upon retirement, you plan to spend US$40,000.00 per...
3. You plan to retire in 40 years. Upon retirement, you plan to spend US$40,000.00 per year for 30 years. a. At a discount rate of 7.00% per year, how much do you need to have saved up in 40 years if you are to meet up with your retirement objectives? b. Using the answer to part (a) and a compound rate of 8.00%, how much would you have to save yearly for the next 40 years if you are...
I want to retire in 40 years. When I retire, I want to withdraw $20,000 every...
I want to retire in 40 years. When I retire, I want to withdraw $20,000 every 6 months from my savings for a period of 10 years. However, at the end of years two and three in my retirement, I will need to spend $40,000 and $60,000 respectively to send my grandson to culinary school. Assuming I can earn 4% compounded semi-annually, answer the following question: How much money will I need at year 40 to fund sending my grandson...
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
You plan to withdraw $80,000 per year for 30 years after you retire at age 65....
You plan to withdraw $80,000 per year for 30 years after you retire at age 65. You are age 25 now and want to make one deposit at end of each year for 40 years then stop depositing after 40 deposits. To accumulate enough funds to afford the 30 withdrawals, you are presented with 2 options. First is an investment with 8% annual return and second one with 6% annual return. What is the difference between the annual deposit amount...
you plan to retire in 35 years. during each year of retirement, you want to have...
you plan to retire in 35 years. during each year of retirement, you want to have an amount of money with the same prchaning powe that $50,000 has today. inflation is expected to be 3% per year form now. A. how much money do you need in the first year of retiment (35 years from todya)? round to the nearest dollar. B.  Ignore your answer to “a” and assume you need $125,000 in the first year of retirement. Call it CF1....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT