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 $160,000 and she expects her salary to increase by 2% each year, what will be the future worth of her retirement fund after 17 years provided it earns 11% per year?

Q: A manager retired at age 65, and has her retirement savings of $650,000 invested in a mutual fund…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Consider a person who begins contributing to a retirement plan at age 25 and contributes for 40…

A: Calculate Value of the amount at age of 65 as below: Resultant table: Hence, plan has value of…

Q: Calculate the return that Lin Shan is earning on her annuity.

A: Given, Investment - PV = 1000000 Payment - PMT = 60000/2 = 30000 years - N = 15 Period - m = 15*12 =…

Q: how much will John have in his retirement account at age 60?

A: Present age is 25 Rate of return = 8% Retirement age = 60

Q: An engineer planning for retirement decides that she wants to have income of $100,000 per year for…

A: Given information: Annual income of $100,000 for 20 years First withdrawal is beginning 30 years…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: Annuity is a stream of equal cash flows(deposits) over specified time. Where cash flow is due at the…

Q: Sandra Jones intends to retire in 20 years at the age of 65. As yet, she has not provided for…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…

Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: A father, whose dream is to see his son grow up to be an engineer, plans to invest a certain sum…

A: given, Annuity ( A)= $15000 rate (r) =12% n = 9 (10th to 18 th year)

Q: Una Day is planning to retire in 20 years, at which time she hopes to have accumulated enough money…

A: Retirement fund:  A retirement fund is a particular fund into which people contribute money in order…

Q: Sandy, a manufacturing engineer, just received a year-end bonus of 26,000 dollars that will be…

A: Time value of money-It is based on the concept that money earned today is worth more than similar…

Q: Claire Fitch is planning to begin an individual retirement program in which she will invest $1,500…

A:

Q: Ms. Ieda Silva plans to retire in 28 years and expects to live for 25 years after retirement. She is…

A: we can use discounting techniques to value the monthly deposits.

Q: .If the rate of interest per year is 5%,what is the amount of installment that the company should…

A: Annuity Payments: It is a series of payments compounded or discounted at a particular rate of…

Q: Maria Alvarez is investing $300,000 in a fund that earns 4% interest compounded annually. What equal…

A: Compound interest refers to addition of interest to principal sum of loan or deposit.

Q: Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average…

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

Q: Stella has $3,000,000 in her investment fund. She wishes to withdraw $338,868 at the end of each of…

A: In the given question, the amount to be invested today is the present value of a series of…

Q: Susan gets a job upon completion of her MSME degree with a mechanisms design firm. Her starting…

A: Working note:

Q: Theresa figures she needs $200,000 in ten years to pull off an early retirement to an undisclosed…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: Alice has been in a defined-contribution pension scheme since she was 35 and will retire in one…

A: Pension plans are the plans in which the employer or the person who sponsor promises to pay a…

Q: Ms. Anna Ang, aged 39, recently purchased an endowment plan from an insurer that requires her to set…

A: Yearly Payments = $24,000 Time period = 23  Inflation Rate = 2%  Rate of return = 4%

Q: A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a…

A: Here, To Find: Future value of annual savings (FV) =? Annual withdrawals made for 20 years after…

Q: Levi plans to retire at age 66, and estimates that $61,200 a year in retirement for 20 years will be…

A: The amount needed at retirement will be equal to the present value of all the payments needed after…

Q: A young engineer wants to provide his newly born daughter a lump sum of P 2.0M when she graduates…

A: Future value required (FV) = P 2,000,000 Period = 21 Years Number of monthly payments (N) = 21*12 =…

Q: A man who won 730,000 pesos in a lottery decided to place 50% of his winnings in a trust fund for…

A: A man won a lottery of worth = 730,000 pesos He invested 50% in trust funds for his son education =…

Q: John and Jane are both 40 years old. When they retire in 25 years, they hope to have a retirement…

A: Present value refers to the current value of a sum of money in the future at a specified interest…

Q: How much should you save at the end of each year from year 36 through 65 such that you have the…

A: Caclulate the present value of future withdrawals at t=66. This amount becomes the future value for…

Q: Alexandra is 30 years old today, and she is planning to retire at age 65. Her current salary is…

A: The payment for retirement funds is 10% of income but because the income is increasing by 5%, the…

Q: Allen is planning for his retirement pension fund. He expects to receive £20,000 a year for 30 years…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

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: Elif received a bonus of $100,000 at the age of 30 and she decides to invest this money to a savings…

A: The nper function or concept can be used to determine the number of years or time required to…

Q: Ashley invests $250 a month in her 401(k) retirement account, which earns an 8 percent annual…

A: Monthly payment (P) = $ 250 Annual interest rate = 8% Monthly interest rate (R) = 8%/12 = 0.6667%…

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

A: Given information : Current age 30 Current earnings $40000 Retirement age 65 Growth rate 5%…

Q: nAsma plans to retire in exactly 20 years. After retirement her goal is to invest in a fund that…

A: Calculate present value of annuity of $20,000, in order to know the size of fund in 20 years. Where,…

Q: o save Php 2 750 at the end of every 6 months, which is the amount paid into her retirement plan by…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

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

Q: George plans to retire in 15 years. His current household expenses are $91000 per year. He estimates…

A: Estimate Retirement Expense = Current household expenses - Expenses that are not required after…

Q: To ensure his retirement income, a 40-year old man plans to purchase annuity when he turns 65. The…

A: Monthly Annuity Payments = 7500 Time Period = 20 years * 12 = 240 months Interest % = 5%/12 End of…

Q: Marites, a self-employed individual, is opening a retirement account at a bank. Her goal is to…

A: First deposit (F) = A1 Accumulated amount needed = Php 1000000 Number of deposits (n) = 20 Growth…

Q: how much would he need to invest today?

A: Present Value: It represents the present value of the future sum of the amount and is computed by…

Q: A couple will retire in 40 years.   They plan to spend $50,000 of their savings each year, with the…

A: Present value refers to the worth of the amount in current times that is expected to be received in…

Q: Jennifer establishes an investment account to pay for college expenses for her daughter. She plans…

A: Given: Effective interest rate = 11% Annuity is the regular payment to be made at a regular…

Q: Emily Dorsey’s current salary is $90,000 peryear, and she is planning to retire 22 years from…

A: Formula to calculate accumulated interest: A=P1+rnn×tWhere,A = final amount P = initial principal r…

Q: Over the years, Ahmed and Aamina El-zayaty, of Berkeley, CA,desire an annual retirement income of…

A: Given information: The future value will be zero because the amount of investment yielding an…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.