6. Choose the best retirement plan for the employee from among those presented below. interest is 12.00% pa compounded monthly. Select the correct response: P200,000 now plus P1.7 M after 2 years P100,000/month for 1 year plus P400,000 after one year P64,000/month for 2 years P1.65M on the 18th month

Q: Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in…

A: Future value of annuity =  P * [ (1+r)^n  - 1 ] /r  Where, r =rate of return per period i.e. 6%/12 =…

Q: elix Jones, a recent engineering graduate, expects a arting salary of $35,000 per year. His future…

A: Salary grow by fixed percentage that salary is geometric sequence of growing annuity and the present…

Q: Assume you put $200 per month into a retirement account for 14 years, and the account has an APR of…

A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Find the final amount in the following retirement account, in which the rate of return on the…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Felix Jones, a recent engineering graduate, expects a starting salary of ₱35,000 per year. His…

A: Annual Salary in Year 1 = 35,000 Annual Growth = 5% Interest Rate = 6% Time Period = 5 years…

Q: Round final answers to the nearest penny as needed. 1. Suppose you are paid $2400 per month and your…

A: The future value of the retirement savings will depend upon the monthly savings, the monthly rate,…

Q: To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate…

A: The future value of an annuity is the worth of a series of recurrent payments at a future date,…

Q: 1. Assume you deposit $3,000 today, and $300 at the end of each year, in an account earning 4% per…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Assume that you contribute $330 per month to a retirement plan for 15 years. Then you are able to…

A: This is an annuity where we make equal contributions each month. To get the value of the investment…

Q: You are to make monthly deposits of $625 into a retirement account that pays an APR of 11.4 percent…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What should be the balance in a Registered Retirement Income Fund (RRIF) that will provide $2,000 at…

A: The balance of the fund is equal to the sum of the present values of all future receivables. The…

Q: Find the final amount in the following retirement account, in which the rate of return on the…

A: An annuity is the sum of annual equal payments over the period of time at a certain date, at a…

Q: How much must I prepare today if I want to have P50,351 at each end of the month as long as I live…

A: monthly rate = (1 + 9.8%/6)1/2 -1 = 120 amount needed at the end of 10 years = 50,351/0.8134% =…

Q: Assume an APR of 12%. Bill wants to retire in 10 years from now. Starting a month from the time of…

A: Calculation of deposit to be made a month from now is shown below: Hence, deposit to be made…

Q: Your employer automatically puts 5 percent of your salary into a 401(k) retirement account each…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: You begin saving for retirement at age 25, and you plan to retire at age 60. You want to deposit a…

A: In the given problem we need to calculate the Monthly deposit needed to have a nest egg size of…

Q: You intend to make the annual maximum contribution of $6,000 to your Roth IRA (individual retirement…

A: Maximum Contribution per Year(PMT) is $6000 Time Period(NPER) is 30 years Rate is 10 years   To…

Q: Your employer automatically puts 10 percent of your salary into a 401(k) retirement account each…

A: If the amount of contribution incurred by a person increases, then it is known as growing annuity.…

Q: You have just made your first $1,500 contribution to your retirement account. Assume you earn a…

A: FV = PV(1 + r)t FV= Future Vale PV = Present Value r= rate of interest t = time in years

Q: 16. Rolfe set up an RRSP for a client when the client was account every month until they retired at…

A: monthly savings =$750 Annual savings=12×750=$9000 Annual rate of interest =7.6 Period =30 years…

Q: How much must I prepare today if I want to have P53,484 at each end of the month as long as I live…

A: The series of cash flows received at the end of each month forever will be called a perpetuity. The…

Q: Your employer offers a 401(k) plan with a 16% match, and you set a goal of retiring in 31 years with…

A: 401(k) is a type of retirement plan which allows investor to accumulate funds for retirement by…

Q: A person deposits 200$ at the end of first, 300$ at the end of second and with draw 150$ at the end…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Your employer has offered to contribute $50 a week to your retirement savings account. Assume you…

A: Number of weeks (n) = 15 years x 52 weeks = 780 Weekly interest rate (i) = 8.5%/52 = 0.16346153846%…

Q: Suppose a recent college graduate's first job alows her to deposit S100 at the end of each month ina…

A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth…

Q: A new employee plans to receive 760,000 TL individual retirement bonus when he retires. According to…

A: a) this an example of an ordinary annuity all we need is to find out the premium which is the…

Q: what is the value of your retirement plan after the 40 years?

A: A retirement plan is the planning for retirement. It is an investment plan, whereby the investor…

Q: How long will it take an RESP to grow to $200,000, if the plan owner contributes $250 at the end of…

A: The payment flow which continues for a definite time period and terminates after lapse of time…

Q: A young engineer’s starting salary is $75,000. The engineer expects annual raises of 2%. The…

A: Salary = $75,000 Annual raise = 2% = growth rate =G  Deposit = 15% of salary Average interest = 6% =…

Q: To prepare for retirement, you are going to deposit money into a pension plan account every month…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up…

A: The 401k contributions are the contribution made by the employee and employer for the retirement of…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: Ordinary Annuity According to given information woman deposits the amount at the end of each month…

Q: Question 1  Your salary for the coming year is $100,000 (payable one year from now) and you expect…

A: We have: Yearly salary to be received one year from now : $100,000Annual growth rate in salary :…

Q: You want to invest an amount today that will last for 8 years and allow you to withdraw $725 at the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How…

A: Since the contribution would be monthly, we need to find the monthly compounding rate which is given…

Q: Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in…

A: Deposit each month (p)= 150 Number of Deposit (n)= 10*12= 120 Interest rate per month (i)= 9%/12=…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: We have a question that involves the application of time value of money concept, sequentially. We…

Q: our company’s pension plan earns 4.3 % interest per year, compounded quarterly.      a)  You…

A: In the first part, the Present Value of the payments is to be computed. In the second part , the…

Q: 1. Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50%…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: If you have been hired at an annual salary of $23000and expeck to receive annual increases of 5%…

A: Your annual wage is the amount of money paid to you by your employer over the course of a year in…

Q: Determine the principal P that must be invested at rate r = 2%, compounded monthly, so that $500,000…

A:

Q: What amount would you have at age 65 if you contributed $260 a month starting today at age 25 and…

A: A series of continuous fixed payments at equal intervals for a number of periods is called annuity.…

Q: how large will your retirement account be in 32 years?

A: Future Value: It is the future worth of the present annuity stream or the present sum of money. It…

Q: Assume that you contribute $150 per month to a retirement plan for 15 years. Then you are able to…

A: This question provides that $ 150 per month for 15 years and increases the $ 350 per month for next…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: Money in the account after 28 years is future value of monthly deposits

Q: Your employer automatically puts 5 percent of your salary into a 401(k) retirement account each…

A: The series of payments discussed here is a form of annuity with growth.

Q: Aunt May will start receiving quarterly pension ($5000 quarterly paycheck) beginning one quarter…

A: Pension: It is the regular payment paid by the government to the retired employees.