A couple will retire in 40 years; they plan to spend about $33,000 a year in retirement, which should last about 20 years. They believe that they can earn 8% interest on retirement savings.   a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)           b. How would the answer to part (a) change if the couple also realize that in 15 years they will need to spend $63,000 on their child’s college education?

Q: You and your wife are making plans for retirement. You plan on living 25 years after you retire and…

A: Present value of annuity concept is required to use in this case. Present value of annuity is the…

Q: Luis has $160,000 in his retirement account at his present company. Because he is assuming a…

A: Given: Amount in retirement account = $160,000 Annual payment = $2,000 Years =22 Interest rate = 8%

Q: Suzan Long is considering buying a home for$350,000.(a) If she makes a down payment of $50,000…

A: In this problem, a person purchases a home for $350,000 and make down payment of $50,000. The…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Here, Annual payment = $50,000 Interest rate = 6% Number of periods = 10 years To Find: PV of…

Q: Assume that you contribute $330 per month to a retirement plan for 15 years. Then you are able to…

A: This is an annuity where we make equal contributions each month. To get the value of the investment…

Q: A young couple plans to invest part of their salary to finance their retire- ment. They want to have…

A: Future value is the amount accumulated in an account after a certain period of time at a certain…

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: John and Rosamond want to retire in 8 years and can save $230 every 3 months. They plan to deposit…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: (Refer to this word problem In order to plan for their retirement, a married couple decides to…

A: Quarterly payment (Q) = P 50000 r = 8% per annum = 2% quarterly = 0.02 n = 10 years = 40 quarters

Q: Your client is 26 years old. She wants to begin saving forretirement, with the first payment to come…

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

Q: You are offered the opportunity to put some money away for retirement. You will receive 10 annual…

A: Annual payment “PMT” = 5000 Number of payments “n” = 10 Interest rate = 12% compounded  monthly…

Q: Your parents will retire in 29 years. They currently have $250,000 saved, and they think they will…

A: Future value is referred to as the value of the current assets at the date in future on the basis of…

Q: If they make annual payments into a savings plan, how much will they need to save each year ?

A: Information Provided: Retirement time = 50 years Amount to be spend = $38,000 Interest rate = 9%

Q: Sherry has a goal of retiring with $375,394 by making weekly deposits into an investment account…

A: Present value =Future amount/(1+r)n n=29 years  r=rate of interest =1.4%

Q: You and your wife are making plans for retirement. you Olán on living 25 years after you retire and…

A: Annual amount required = 100000 years to live =25 years Number of years to withdraw(n) = 25-1 =  24…

Q: Amanda is going to invest to help with a down payment on a home. How much would she have to invest…

A: The concept of the time value of money states that the same amount of money has more value now than…

Q: Your employer offers a 401(k) plan with a 17% match, and you set a goal of retiring in 35 years with…

A: Given: Value today = $1.1 million or $1100000 Inflation rate = 1.5% Annual rate = 1.2% Number of…

Q: A couple will retire in 50 years; they plan to spend about $35,000 a year in retirement, which…

A: given information   reirement period = 25 years spend in a retirement period for a year $35,000…

Q: Your parents will retire in 19 years. They currently have $330,000 saved, and they think they will…

A: Interest rate is the rate of return to be earned from an investment for a particular period. Given:…

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…

A: Information: a) In part 1,we first have to calculate the present value of annual payments at time=50…

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

A:

Q: How many years would it take save an adequate amount for retirement if he deposits $2,100 per month…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Your parents will retire in 23 years. They currently have $300,000 saved, and they think they will…

A: Time value of money means that the worth of currency in present terms is different from the worth in…

Q: A couple just got married and they both are 25 and plan to retire at 65, in 40 years. They want 200k…

A: You have to calculate first retirement amount and than find out present value of that.

Q: The Martinez are planning for a retirement home. They estimate they will need $212,000 4 years from…

A: Present Value:The present value refers to the value which is the current value computed for future…

Q: A couple will retire in 50 years; they plan to spend about $38,000 a year in retirement, which…

A: Part (a): Calculation of annual payment: Answer: Annual payment is $457.94 Calculation of present…

Q: Your parents will retire in 16 years. They currently have $400,000 saved, and they think they will…

A:

Q: A couple wants to retire in 35 years and can save $400 every month. They plan to deposit the money…

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

Q: You are planning to invest $3,000 in an account earning 7% per year for retirement. a. If you put…

A: Here we will use the concept of time value of money.

Q: Your parents will retire in 17 years. They currently have $310,000 saved, and they think they will…

A: Future value = present value * (1+r)^n Where r= rate of interest n= compounding year

Q: Your parents will retire in 29 years. They currently have $240,000 saved, and they think they will…

A: Number of years to retirement is 29.  The amount saved is $240,000 The amount required in 29 years…

Q: A woman desires to have $400,000 in a savings account when she retires in 20 years. Because of the…

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

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…

A: Given information : Time to retire (years) 50 Periodic expense during retirement $32,000…

Q: You will retire in 26 years and can afford to put away 11 % of your salary each year. You make…

A:

Q: Every year, you receive your entire annual salary at the end of the year. This year, your…

A: Inflation rate With nominal rate and real rate, the inflation rate is calculated as show below.…

Q: A couple will retire in 40 years; they plan to spend about $27,000 a year in retirement, which…

A: values provided according to question, A=$27000R=7%N=20 YEARS TOTAL AMOUNT NEEDED FOR RETIREMENT…

Q: Considering inflation, Joanna is advised that she will need $4,500 a month for living expense once…

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

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…

A: The present value is the current value of the amount which is expected to be received in future at a…

Q: Your parents will retire in 17 years. They currently have $290,000 saved, and they think they will…

A: Future value = Present value *(1+rate)^years $2,000,000 = $290,000*(1+rate)^17 Rate = ($2,000,000 /…

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…

A: The problem is based on the concept of time value of money which says that money received today is…

Q: You are offered the opportunity to put some money away for retirement. You will receive 10 annual…

A: Here, Annual Payments Received is $5000 Interest Rate is 12% Monthly Interest Rate is 12% / 12 = 1%…

Q: A couple wants to set up a college savings account for their grandchild. If the account earns 4.4%…

A: We need to calculate Present value of $50000, using time value of money formulae.

Q: You decide to replace your income of $70,000 a year in retirement for 30 years. How much do you need…

A: Interest rate (r)= 3% Compounding (k)= annually Time period (n)= 30 years Retirement Income (d)=…

Q: You believe you will need to have saved $510,000 by the time you retire in 30 years in order to live…

A: PMT function is used to calculate yearly savings

Q: Your parents will retire in 23 years. They currently have $290,000 saved, and they think they will…

A: The present value is $290,000.The future value is $900,000.Number of years is 23.

Q: Your parents will retire in 30 years. They currently have $350,000 saved, and they think they will…

A: Given information: Present value amount (PV) is $350,000 Future value (FV) is $1,950,000 Number of…

Q: A couple will retire in 40 years; they paln to spend about $23,000 a retirement, which should last…

A: The stream or series of payments that are to be made at specific time intervals is known as annuity.…