a 20 year old college student wants to save $3 a day for her retirement. Every day she places $3 in a drawer. At the end of the year, she invests the accumulated savings ($1095) in a brokerage account with an expected annual return of 12%. 1) how much will she have when she is 65 years old? (Draw a timeline and use both the formula and financial calculator methods) 2) How much must a 40 year old investor needs to deposit annually to catch the 20 year old when the investor becomes 65 years old? (draw a time line and use both the the formula and financial calculator methods)

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 =…

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A:

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A: Solution: Current annual cost is $13,000 and these costs expected to increase by 6% annually.…

Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…

A: Current annual cost= $18000 College savings= $7000 Interest= 9%

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A: a) The computation of future value of annuity: Hence, the future value of annuity is $3,211,584.

Q: Molly Lincoln, a 30-year-old personal loan officer at First National Bank, understands the…

A: 1) Hence, the account balance after 65 years is $1021906.79.

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

A: Calculation of amount at the end of 25 years is shown below: Hence, Amount to be received at the…

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A: GIVEN, Age of Maria = 25  retirement age = 65 therefore number of years of savings = 65- 25 = 40…

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A: Future value is the future worth of an investment at a certain rate of interest and period of time.…

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Q: Bella is 23 years old and wants to invest money for her retirement.  She wants to have $2,000,000…

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A:

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A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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

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Q: A 20-year-old student wants to save $3 a day retirement. Every day she places $3 in a dra the end of…

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Q: Nest egg at 4% 2b. Nest egg at 8%

A: 1.

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A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

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A: Given: Future value (FV) = 30,000 Present value (P) = 10,000 Interest rate = 12%

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.