A 45-year-old engineer earning $120,000 per year wants to retire at age 65 with $2 million. The engineer has nothing saved and expects to earn 7% annually on the investment? (a) How much money must be invested each year? (b) If the employer does a 100% match of retirement savings up to 4% of the employee’s salary, how much money must each invest annually?

Q: When you take your first job, you decide to start saving right away for your retirement. You put…

A: Annual contribution (A) = $8000 Duration of contribution (n) = 10 years r = 15% We need to find the…

Q: ohn wants to retire with $10,000 per month, how much principal is necessary to generate this amount…

A: in this we have to calculate Present value of perpetuity.

Q: A young engineer’s starting salary is $65,000. The engineer expects annual raises of 2.5%. The…

A: The growth in annual salary of $65,000 is 2.50% and because savings are made as proportion of…

Q: An engineer in an industry has received a year- end bonus of $10,000 which will be invested…

A: FV = PV * (1 + r)n FV = Future value PV = present value = $10,000 r = rate of interest = 8% n =…

Q: You earn $500 a week at your new job and would like to invest 20% of your income into an account…

A: Here, Weekly Income is $500 Investment is 20% of Income. Hence, investment will be:…

Q: "As of today, Americans live on average 20 more years after retiring, which calls for well-designed…

A: Answer) The engineer is investing $ 10,000 each year for next 15 years Amount accumulated = Amount…

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: You expect to work for another 30 years. At your retirement in year 30, you expect your company's…

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

Q: A 55-year-old executive will retire at age 65 and expects to live to age 75. Assuming a 10 percent…

A: Age of retirement = 65 Age of death = 75 Number of years to avail annual amount of P10,000 = 10…

Q: On January 1, Bob just reached age 30. He earned $90,000 at the end of last year. It is assumed that…

A: Note: This question has five sub-parts. The first three have been answered below. Given: Bob's…

Q: An engineer invests $5000 at the end of every year for a 40-year career. If the engineer wants $1…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  where, r =rate of interest per period  n = no. of…

Q: Anew graduate has successfully found their dream job and wants to start saving for retirement. She…

A: Present value of annuity due is present value of future recurring cashflow at regular interval…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

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

A: Given that : Compounded = quarterly Bonus for 50 employees = $1200 x 50 = $60,000 Principal = ? The…

Q: Jeff Bezos who owns Amazon has a net worth of approximately 143.1 billion as of May 2018 and…

A: Net Worth refers to excess assets or liabilities. It refers to monetary value of assets left with…

Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old. Tom…

A: The notion of the time value of money (TVM) is concerned with money's purchasing power capability,…

Q: Stuart Daniels estimates that he will need $26,000 to set up a small business in 7 years. How much…

A: The present value of a cash flow is the current worth of a cash flow at a certain rate of interest…

Q: $200 a week at your job and would like to invest half your earnings. What is the difference between…

A: Given information : Weekly earnings  $200 Lower interest rate  8% Higher interest rate 12%…

Q: You have just made your first $4,300 contribution to your retirement account. Assume you earn a…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: What is the accumulated future value of his position? ( ?=R/K (e^kt-1) where R is the income stream,…

A: R(t) represents the rate per year of a continuous income stream and is a constant k is the interest,…

Q: You start working at age 23 and you plan to deposit $5,100 in a savings account every year (end of…

A:

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

A: The total number of employees is 50 and the total bonus to be received is $60,000 (50 employees ×…

Q: A couple just got married and they are both 25 years of age.  They each plan to retire in 40 years…

A: Amount Required after retirement =200000 per  year After retirement years (n1) =20 Interest Rate(r)…

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: Assume you are 25 and earn $35,000 per year, never expect to receive a raise, and plan to retire at…

A:

Q: A 25-year-old engineer earning $65,000 per year wants to retire at age 55 with $2 million, and plans…

A: Since the annual interest rate is not given then we solve the problem by assuming the interest rate…

Q: If edward want to earn 215,000 within the next 20 years and the salaries grows at 4.15% per year…

A: given, fv = $215000 r=4.15% n=20 years

Q: Your firm has a retirement plan that matches all employee contributions with employer contributions…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Matt Christopher is a 30-year-old mechanical engineer, and his salary next year will be $80,000.…

A: Computation of the amount that will be saved by Matt Christopher at the age of 60 years is shown:

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: How much money will you have on the date of your retirement 45 years from today?

A: This problem is related to Future Value of Growing Annuity Due. Future Value of Growing Annuity =…

Q: You accept a job that pays a salary of $90,000 for the first year. During the next 19 years you…

A: We need to calculate total future value of salary received for 20 years which will increase at 4%…

Q: n you take your job, you decide to start saving for your retirement. You put P3k per year into the…

A: There is need of proper planning for retirement and that you must do as early as possible so that…

Q: Marie's current salary as a Systems Engineer is $100,000 per year. She's planning to place 18% of…

A: The future value of an investment is calculated by multiplying the invested amount by 1+r factor for…

Q: The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. How…

A: Given information: Number of employees 20 Nominal rate is 12% Future value is $2,500

Q: An engineer who is planning his retirement has decided that he will have to withdraw ₱10 000 from…

A: Retirement funds are the funds that are accumulated by an individual in his/her pre-retirement life…

Q: An individual who makes $32,000 per year anticipates retiring in 30 years. If his salary is…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: An engineer invests $5000 at the end of every year for a 25 year career. If the engineer wants…

A: The interest rate earned in investment: The amount of interest earned from assets that pay the…

Q: You are offered a job that pays $37,000 during the first year with an annual increase of 9% per year…

A: Solution:- When an amount increases by same rate of growth, the amount at nth year can be computed…

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

A: The total number of employees is 50 and the total bonus to be received is $60,000 (50 employees ×…

Q: A small business owner contributes $3,000 at the end of each quarter to a retirement account that…

A: Given information: Quarterly payment $3,000 Interest rate 10% compounded quarterly Future value is…

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

A: Here, No. of Employees is 50 Bonus of Each Employee is $1,200 Total Bonus Required is:…

Q: "As of today, Americans live on average 20 more years after retiring, which calls for well-designed…

A:

Q: a. Suppose that between the ages of 22 and 32, you contribute $7000 per year to a 401(k) and your…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: new job and you'll make $100,000/year and will be paid 2x month (equal payments) To save for…

A: Given information : Yearly earnings 100000 Percentage contribution 10% Annual return 7.20%…

Cash and Liquid Asset Management

Cash management is the process of controlling cash inflow & cash outflow, managing the cashflows inside the business, and utilizing the cash for business operation at any point in time. A business has to maintain a certain level of cash to meet various financial obligations. Cash management is essential because businesses must utilize the cash to generate maximum profit. Cash management also ensures to maintain maximum liquidity in the business.