A 35-year-old individual wants to earn income at the end of the semester for 10 years, depending on the condition of living after 10 years. If the net single premium is 5000 TL , Calculate the annual income amount. (please don't use excel, just paper use .)
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A 35-year-old individual wants to earn income at the end of the semester for 10 years, depending on the condition of living after 10 years. If the net single premium is 5000 TL , Calculate the annual income amount.
(please don't use excel, just paper use .)
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- A man who is 30 years old at the start of the year, is considering getting an MFM degree. He currently earns $40,000 per year and expects to continue earning that amount for the rest of his working life (until age 65). He will give up his income for two years and will pay $20,000 per year in tuition, if he attends business school. In exchange, he expects a raise in his salary after completing his MFM. Assume that the post-graduation salary grows at a 5% annual rate and that the discount rate is 8%. What is the minimum expected starting salary after graduation for him that makes attending business school a positive-NPV investment? (Assuming that all cash flows happen at the end of each year.) Use Time Value of Money calculations.After graduation, you have been offered an engineering job with a large company that has offices in Tennessee and Pennsylvania. The salary is $55,000 per year at either location. Tennessee’s tax burden (state and local taxes) is 6% and Pennsylvania’s is 3.07%. If you accept the position in Pennsylvania and stay with the company for 10 years, what is the FW of the tax savings? Your personal MARR is 10% per year.The average age of engineering students at graduation is a little over 23 years. This means that the working career of most engineers is almost exactly 500 months. How much would an engineer need to save each month to accrue $5 million by the end of her working career? Assume a 9% interest rate, compounded monthly.
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- Five years after you graduate from MSU, you receive a promotion that increases your salary to $120,000 per year. You have decided to buy a house, so you go to a bank that gives you the following offer on a loan: 9% annual interest, no down payment required, closing costs of 5% of the amount borrowed, 30 year loan with monthly payments, and the amount of the monthly payment cannot exceed 25% of your monthly pre-tax pay. In addition to that maximim amount you can borrow from the bank, you have saved $50,000 that you will put toward the purchase of the house. What is the maximum price that you can afford to pay for the house (hint: you will borrow the maximum amount the bank will allow you to borrow, and add the money you have saved onto that, and you must also pay the closing costs)? Multiple Choice $76,899.93 $310.704.66 10 $345,169.43 $360,704.66 $373739.90At the end of each year a self employed person deposits 1500 in a retirement account that earns 10 percent annually. How much will be in the account when the individual retires at age 65 if the savings program starts when the person was age 45?Claire is planning annual end of year withdrawals from her tax-free account after retirement for 35 years. She has Principal of $755,000, Investment return is 6%, Initial withdrawal $40,000 and annual increase of withdrawal $1,000. Show the work if Claire is possible to continue withdrawing for 35 years? In order for her to do that, what does she have to do?( show excel function & cell reference)
- When your firm hires a new employee this year, it is obligated to contribute GBP £5,000 to a defined contribution plan for that employee, one year after the hire date. The contribution must be adjusted annually for inflation. Assume that inflation will be a constant 2.0% a year from this point forward. What is the pension cost to you of hiring a 30 year old who will be with the company for 32 years if the appropriate discount rate is 10%? Round your answer to the nearest pound.A client currently has $100,000 earmarked for retirement and expects a 7% annual return on the account both preretirement and post retirement. What is the income at the beginning of each month the account could provide for 20 years in retirement if the client is currently age 40 and plans to retire at age 67?A 55-year-old executive will retire at age 65 and expects to live to age 75. Assuming a 10 percent rate of return, calculate the amount he must have available at age 65 in order to receive P10,000 annually from retirement until death.
