A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $200,000 and she expects her salary to increase by 4% each year, what will be th future worth of her retirement fund after 14 years provided it earns 8% per year?

Q: A civil engineer planning for her retirement places 8% of her salary each year into a…

A: To calculate the future worth we will use the future value of growing annuity formula as follows:…

Q: Magdalena, age 35, has $72,000 accumulated in savings. She projects she will save $23,000 a year…

A: The amount you can put back or invest each period, as well as the interest you earn on your savings,…

Q: Julie has just retired. Her company's retirement program has two options as to how retirement…

A: Solution 1a: Present value of first option = Lump sum immediate payment = $158,000 Present value of…

Q: Carolyn is helping to save for her granddaughter’s college fund. It will probably take 18 years…

A: Future value required (FV) = $150,000 Interest rate (r) = 6% Number of annual payments (n) = 18…

Q: A civil engineer planning her retirement will deposit 10% of her salary each year into a…

A: Using formulae, Future Value =Present Value * (1+rate)^n Where n = no. of years till end

Q: Mia plans to save $9,700 a year for the next 27 years to help her in retirement starting at the end…

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

Q: 1. Abbigail wish to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: A recent UCF graduate just accepted a job offer that promises her the following bonuses at the end…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: ylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: In this we need to calculate the present value of annuity.

Q: Kerry Bales won the state lottery and was given four choices for receiving her winnings. Receive…

A: Present value  = Future value/(1+pir)^n

Q: A civil engineer planning for her retirement places 11% of her salary each year into a…

A: As per the information provided the engineer will draw an amount of $160,000 at the end of the first…

Q: A graduating CE is going to make $35,000/yr with Granite Construction. A total of 10% of the CE…

A: First deposit in mutual fund (D) = 10% of $35000 = $3500 Growth rate in deposits (g) = 3% n = 30…

Q: Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Given, Amount required is P200,000 Rate 10% compounded quarterly.

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A:

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A: As par rules, An employer's contribution cannot exceed lower of the two values to the SEP IRA on…

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: How much does your client need to contribute to a fund each month for the next 25 years (first…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: An engineer planning for her retirement will deposit 15% of her salary each year into a stock fund.…

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

Q: c. If she expects to earn a 9 percent annual return on her investments, which option should b. If…

A: Note: It is a case where no question is specified to solve among the multiple questions posted, so…

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A: Dear student, we need to use excel NPER function to calculate number of years of deposit that…

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A: Working note:

Q: A young woman, 22 years old has just graduated from college. She accepts a good job and desires to…

A: Let n = Years for which deposits are made Deposit (D) = P 2000 r = 15%

Q: . A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To…

A: When a number of payments or receipts of equal amount is made at equal intervals of time, it is…

Q: Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They…

A: Introduction Sinking Fund A sinking fund is an account earning compound interest into which you make…

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A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: An engineer changed jobs and is signing up for benefits. The company 401(k) includes a low cost…

A: $4152

Q: Over the years, Samuel and Elizabeth Paget, of Elon, North Carolina, have accumulated $200,000 and…

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Q: . If Jennifer contributes $500 every quarter into her superannuation fund for the next 45 years, how…

A:

Q: An engineer planning for her retirement will deposit 10% of her salary each year into a stock found.…

A: Solution- Year 0 =20000 Year 1 =12000 Salery to increase at 5% so her saving will increase by 5% for…

Q: A civil engineer planning for her retirement places 9% of her salary each year into a…

A: Salary = $160,000 Percentage in the retirement plan = 9%  Growth rate = 5%  Time period = 16 years…

Q: A man wants to help provide a college education for his young daughter. He can afford to invest…

A: The annual investment is the amount to be paid at the end of the period. It is paid on annual basis.…

Q: Nicola Martin also just started working with the NCB as a sales representative and is just trying to…

A: As withdrawals and deposits are in annual terms we need to calculate effective annual rate

Q: After completing your Bachelor of Business (Accounting) degree, suppose you secure a permanent…

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

Q: raise in his salary after completing his MFM. Assume that the post-graduation salary grows at a 5%…

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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: Nicola Martin also just started working with the NCB as a sales representative and is just trying to…

A: The calculation is:

Q: A young student 22 years old has just graduated from college. She accepts a good job and desires to…

A: Current Age = 22 Annual Deposit = 2000 Interest Rate = 15% End of year deposits Future Value =…

Q: mployee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly.…

A: The present worth of fund is the equivalent value of fund today considering time and interest rate…

Q: Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Present value = Future value/(1 + r)n Present value = Amount needed to be deposited Future value =…

Q: Jackie is 34 years old. She would like to have $850,000 in her retirement account when she is 65…

A: An annuity is a stream of equivalent periodic cash flows occurring at equal time intervals. The…

Q: Q4. Aloma, a university graduate who started a successful business, wants to start an endowment in…

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A: Annnuity at the end of each year from year 19 to 44 = $17,000 Time = 26 years Rate = 4.3% annually…

Q: Julie has just retired. Her company's retirement program has two options as to how retirement…

A: Total present value = Present value of annual cash flows + Present value of lumpsum amount

Q: Bill has an emergency fund already set aside, so he can use his $400,000 of savings for retiremenr.…

A: 1) Savings = $ 400,000 Interest rate = 5% for 30 years Formula for annuity is Present value of an…

Q: A young engineering student has just graduated in college. He is able to obtain his first job and…

A: Annual deposit = P 5000 Annual interest rate = 12% Future value = $ 2,000,000

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.