MATH201 W3 It's All About The Benjamins AssignmentCHill

It's All About the Benjamins! 3 You and your co-worker Benjamin have both just turned 22 and are having dinner to celebrate. You begin talking about 4 saving for retirement. Your company offers an invesment portfolio that has historically earned 11% interest, compounded 5 semi-annually. You both decide to invest in this portfolio, but you have different investment strategies. 6 7 Benjamin plans to start immediately. He has decided to invest a certain amount of money annually for exactly 8 years. At that point, Benjamin will stop investing in the account and will let the money grow until he turns 65. 8 9 10 You decide you'd rather wait until you are in a better place financially, so you are not going to begin investing until age 30. 11 You will invest the same annual amount as Benjamin and plan to invest that amount every year until you reach age 65. 12 13 You and Benjamin make a friendly bet to see who will have more money in their retirement account at age 65! 14 15 Part I 16 Choose…

Please show working.   Please answer a, b, and c   Your client is 35 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $7,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. $ _________  b. How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent. $ ________ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ ____________ Annual…

You are a young urban professional in your late 20’s and want to save up for your wedding and other life milestones. You decide to invest one million USD at the start of the year in a financial instrument that gives 10,000 every June 30 and an undisclosed amount every December 31. The amount to be given is undisclosed because it will depend on the performance of the financial instrument in the market. You intend not to withdraw this investment until you die.   Assuming an MARR of 9% per semi-annual, compounded semi-annually, compute for the minimum acceptable value X to be paid every December 31.

Your client, Tom, has come to you inquiring about retirement. He wants to know approximately how much (in future dollars) he will need to have saved by retirement. You have calculated that he will need about $182,365 a year to maintain his current life style. He expects to retire at age 64 and live to around 90, and his return on investment averages at 9%. Estimated average inflation is 3%. How much does Tom need to have on day 1 of retirement to meet this goal? O $1,987,422 O $2,127,937 O $2,662,389 O $2,552,815

You are just starting your first job out of college. You and your best friend are competing to see who will have more in their savings when you retire; you both plan to retire at age 52, just 30 years out. You will need $5 million to retire. If you average an annual return of 7% on your investment, how much do you need to put into retirement savings on an annual basis?

Assume that you have just turned 21, are graduating from college, and are planning for your retirement; at age 55. You currently have no money saved, but plan to make significant investments into a retirement account now that you have gotten a high-paying job. Because of moving and additional expenses associated with the start of your new job, you believe that you will only be able to invest $2,000 on your 22nd and 23rd birthdays (2 payments). You then expect to invest $10,000 each year on your 24th through your 30th birthdays (7 payments), $20,000 each year on your 31st through 40th birthdays (10 payments), and $30,000 each year on your 41st through 55th birthdays (15 payments). During this 34-year period you are willing to take some investment risks and you believe that your investment account can earn a nominal annual rate of return of 9 percent, compounded monthly. At age 55 you plan to retire and will use the money in your investment account to buy a 40-year, guaranteed annuity…

You have heard about the impending retirement crisis facing the global community and you want to take action so you don't become a victim of this crisis. You have decided to start contributing a constant amount of $380 into your retirement account every month, beginning one month from today. You plan to keep making that same monthly contribution for 40 years and then you will retire. If your investments earn a rate of return of 7.74 percent, how much do you expect to be in your retirement account the day you retire? $1,420,649 $1,230,765 $997,472 $1,103,344

You have just graduated, are dead broke, but would still like to buy a new car so that you can show it off on Instagram. Your rich Aunt Amy, who is a retired investment banker at the age of 35 because she knew better, is willing to lend you the money to buy the car, as long as you promise to pay her back in four years. You propose to pay her the rate of interest she would otherwise get by putting the money in the bank, which has deposit and loan rates of 2% and 6%, respectively. Based on your projected income and living expenses, you anticipate that you will be able to pay her $30,000, $40,000, $45,000, and $50,000 at the end of each of the next four years, respectively. Required: (a) If your aunt accepted your proposal, how much would she be willing to lend you today? (b) How much would your aunt have in four (4) years if she chooses not to lend you the money? (c) How much would your aunt have in four (4) years if she chooses to lend you the money? (d) Based on your calculations in…

You have just graduated, are dead broke, but would still like to buy a new car so that you can show it off on Instagram. Your rich Aunt Amy, who is a retired investment banker at the age of 35 because she knew better, is willing to lend you the money to buy the car, as long as you promise to pay her back in four years. You propose to pay her the rate of interest she would otherwise get by putting the money in the bank, which has deposit and loan rates of 2% and 6%, respectively. Based on your projected income and living expenses, you anticipate that you will be able to pay her $30,000, $40,000, $45,000, and $50,000 at the end of each of the next four years, respectively. (a)  If your aunt accepted your proposal, how much would she be willing to lend you today? (b)  How much would your aunt have in four (4) years if she chooses not to lend you the money? (c) How much would your aunt have in four (4) years if she chooses to lend you the money? (d) Based on your calculations in…

1) In a few short years, you will graduate and enter the workforce. Let us suppose that you and a friend both start working at the age of 23 and decide on very different ways to fund your eventual retirement. In this exercise, we explore these decisions. Neither of you have any savings (P = 0), plan to retire at age 66, and expect to earn 8.4% annual interest, compounded monthly, on all your investments. a) Having taken this class, you decide to start immediately, investing $120 per month. How much money will be in your account in 20 years? b) At this point (you are now 43 years old), you will stop making monthly deposits into your account. Now, the amount you calculated in part (a) will accumulate interest for 23 years (until you are 66 years old). How much is in your account now? Indicoob selled pham

You are trying to decide how much to save for retirement. Assume you plan to save $6,000 per year with the first investment made one year from now. You think you can earn 6% per year on your investments and you plan to retire in 43 years, immediately after making your last $6,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $6,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 18 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 18th withdrawal (assume your savings will continue to earn 6% in retirement)? d. If, instead, you decide to withdraw $100,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take…

As an investment advisor, you have been approached by a client called Ramesh, who wants some help in investment related matters. Ramesh is currently 45 years old and has Rs 600,000 in the bank. He plans to work for 15 more years and retire at the age of 60. Ramesh's present salary is Rs 400,000 per year. He expects his salary to increase at the rate of 12 percent per year until his retirement. Ramesh has decided to invest his bank balance and future savings in a portfolio in which stocks and bonds would be equally weighted. For the sake of simplicity, assume that these proportions will be maintained by him throughout. He also believes that bonds would provide a return of 7 percent and stocks a return of 13 percent. You concur with his assessment. Once Ramesh retires at the age of 60 he would like to withdraw Rs 500,000 per year from his investments for the following 15 years as he expects to live upto the age of 75 years. He also wants to bequeath Rs 1,000,000 to his children…

Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio. Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision.Payoff Table   State of Nature Alternatives Good Economy Fair Economy Poor Economy Mutual Fund 800800 650650 320320 Stock Market 5,5005,500 4,7004,700 3,1003,100 CDs 1,7001,700 870870 670670 Bonds 550550 320320 185185   Step 2 of 2 :   What is Monique’s potential payoff based on the the Hurwicz Criterion strategy and an α=0.45α=0.45?

You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 7.0​% per year on your investments and you plan to retire in   29 ​years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $4,000 per​ year, you wanted to make one​ lump-sum investment today for your retirement that will result in the same retirement​ saving, how much would that lump sum need to​ be? c. If you hope to live for 28 years in​ retirement, how much can you withdraw every year in retirement​ (starting one year after​ retirement) so that you will just exhaust your savings with the 28th withdrawal​ (assume your savings will continue to earn 7.0​% in​ retirement)? d.​ If, instead, you decide to withdraw $70,000 per year in retirement​ (again with the first withdrawal one year after​ retiring), how…

You are trying to decide how much to save for retirement. Assume you plan to save $4,500 per year with the first investment made one year from now. You think you can earn 6.0% per year on your investments and you plan to retire in 45 years, immediately after making your last $4,500 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 16 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 16th withdrawal (assume your savings will continue to earn 6.0% in retirement)? d. If, instead, you decide to withdraw $191,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…

Vijay

You graduate from college and get your first job. You open a Roth IRA with $2,000 at the age of 25. You invest $3,000 at age 26, $4,000 at age 27, and $5,000 at age 28. You then receive a promotion that brings your incometo a level that disqualified you from making further contributions to the Roth IRA. Construct a table that shows how much will you have in your IRA at the age of 60 if you had invested in an account that paid an averageyield of 8 percent.

Don Hildebrand is trying to decide whether to invest money in a bank or in something a little riskier that will pay a higher return. One very simple investment promises to pay a minimum of 8% compounded annually, but he must leave all of the money and interest invested for 9 years. How much interest will Don earn during the 9 years if he invests $7,150 and the investment pays the minimum?

Your client is 26 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $4,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 12% in the future. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. $   How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent. $   She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $  Annual withdrawals if she retires at 70: $

Your client is 26 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 10% in the future. A. If she follows your advice, how much money will she have at 65? B. How much will she have at 70?

Waiting period. Susan Norman seeks your financial advice. She wants to know how long it will take her to become a millionaire. She tells you that she has ​$1,675 today and wants to invest it in an aggressive stock portfolio. The historical return on this type of investment is 19​% per year. How long will she have to wait if the ​$1,675 is the only amount she invests and she never withdraws from the market until she reaches her​ $1 million? ​ (Assume no taxes on the​ earnings.) What if the rate of return is only 17​% ​annually? What if the rate of return is only 8​% ​annually? How long will Susan have to wait to become a millionaire if she invests ​$1,675 today at an annual rate of return of 19​%?   nothing years ​ (Round to two decimal​ places.) How long will Susan have to wait to become a millionaire if she invests ​$1,675 today at an annual rate of return of 17​%?   nothing years  ​(Round to two decimal​ places.) How long will Susan have to wait to become a millionaire if she…

You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 10.5% per year on your investments and you plan to retire in 36 years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 28 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 28th withdrawal (assume your savings will continue to earn 10.5% in retirement)? d. If, instead, you decide to withdraw $270,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…

Your client is 29 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $15,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money will she have at 65? Do not round Intermediate calculations. Round your answer to the nearest cent. $ b. How much will she have at 70? Do not round Intermediate calculations. Round your answer to the nearest cent. $ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round Intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ Annual withdrawals if she retires at 70: $