An engineer planning for retirement decides that she wants to have income of $100,000 per year for 20 years with the first withdrawal beginning30 years from now. If her retirement account earns interest at 8% per year, the annual amount she would have to deposit for 29 years beginning1 year from now is closest to:a. $7360b. $8125c. $8670d. $9445

Q: An engineer who is about to retire has accumulated $50 000 in a savings account that pays 6% per…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in…

A: Future value of annuity =  P * [ (1+r)^n  - 1 ] /r  Where, r =rate of return per period i.e. 6%/12 =…

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: 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: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…

A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate

Q: A worker age 40 wishes to accumulate a fund for retirement by depositing $3000 at the beginning of…

A: Series of payments, made at the beginning of the periods is known as annuity due. Future value of an…

Q: An engineer who is saving for her retirement plans to deposit $500 every quarter, starting quarter…

A: We have to calculate the future value of $500 paid every quarter for 25 years. Interest is 6%…

Q: On her 23rd birthday. an engineer decides to start saving toward building up a retirement fund that…

A: a. The calculation is: The formulae snip is shown as:…

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: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: Calculation of amount at the end of 25 years is shown below: Hence, Amount to be received at the…

Q: 1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year…

A: Annual saving (P) = $8000 Period from 35th year to 65th year (n) = 30 Interest rate (r) = 7.00%

Q: We are considering the effects of starting early or late to save for retirement. Assume that each…

A: Future Value  $            9,50,000.00 Interest Rate 6% Time for Graduation 33 Time to…

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: What is the total amount at the end of the 10th year of the above series?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: A man is planning to retire in 20 years Money can be deposited at 6% interest compounded monthly,…

A: For this we need to calculate compounded annually rate, i=(1+(r/m))^(m/q)-1 =(1+(0.06/12))^(12/1)-1…

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

A:

Q: An engineering graduate received a job offer with a promise of a 4.75 percent annual raise in her…

A: This is the case of growing annuity in which periodic amounts are deposited at the end of each year.…

Q: An engineer who is saving for her retirement plans to deposit $500 every semiannually, starting…

A: Semi Annual Deposit = 500 End of period deposits Nominal Rate = 12℅ Quarterly Compounding N = 25…

Q: re in 20 years. She opens up a retirement account with an APR of 5.25% compounded monthly. She will…

A: There is need of proper planning for the retirement and if there is proper planning on time better…

Q: andez wishes to have $368,765 in a retirement account 15 years from now. What payment would Noime…

A: There is need of proper planning for the retirement and proper planning lead to have good money on…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: The monthly deposit is $250. Interest per months is (9% ÷ 12) = 0.75%. The formula to calculate…

Q: Laura has decided to invest $5,000.00 at the beginning of the quarter for 10 years. If the interest…

A: Annuity refers to series of equalized payments that are made either at start or end of specific…

Q: what is her payment?

A: Information Provided: Term = 20 years Present value = $1,000,000 Interest rate = 5%   Ordinary…

Q: you are trying to determine how much you should save fc you can spend now. For retirement, you will…

A: You need to calculate present value of all objectives on given date.

Q: company offers you employment for the next 30 years until retirement but will not pay you a pension…

A: In this we have to calculate the monthly deposit upto retirements and than how much can be withdrawn…

Q: An engineer plans to retire in exactly one year and wants an account that will pay him P31,000 a…

A: The amount required to be deposited now is = P31,000 (P/A, 6%, 14) = P31000 x 9.29498393 =…

Q: nd thereafter he wishe

A: The concept of time value of money states that worth of money changes with passage of time. This is…

Q: You want to be able to withdraw $1, 500 from your account each month for 20 years after you retire…

A: The given problem can be solved using PV and PMT  function in excel. PV function computes current…

Q: ennifer is the owner of a video game and entertainment software retail store. She is currently…

A: The amount required to fulfill the retirement goal can be ascertained by computing the present value…

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: Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in…

A: Deposit each month (p)= 150 Number of Deposit (n)= 10*12= 120 Interest rate per month (i)= 9%/12=…

Q: deposits

A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…

Q: A couple will retire in 40 years; they plan to spend about $33,000 a year in retirement, which…

A: a. Present value of retirement income = Annual payment *(1-(1+rate)^-years) / Rate Present value of…

Q: Mechanical Engineer John Cena is planning for retirement decides that he wishes to have income of…

A: Annual income of Php200,000 for 20 years First withdrawal is beginning 30 years from now, Interest…

Q: A is planning for her retired life. She has 10 more years of service. He would like to deposit 20%…

A: Present value of Annuity Annuity is a series of equal payment at equal interval over a specified…

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: Annie would like a retirement income of $4,000 per month (beginning of month payments) for 23 years…

A: Given:

Q: EZ Leifer plans to retire at the age of 65 and believes he will live to be90. EZ wants to receive an…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year…

A: Answer 1) Calculation of worth of account after 10 years if the annual rate of interest is 3% Amount…

Q: How much money has accrued in the account at the end of the 14 years? (Round your answer to the…

A: Case i. Money accrued in the account at the end of the 14 years: Future value of annuity formula =…

Q: Saving up for her retirement Mr. Arta begins making deposits of  $3,000 at the end of every 3 months…

A: Future value = Present value * (1+ Rate of interest) time

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: Jennifer is the owner of a video game and entertainment software retail store. She is currently…

A: The present value function can be used to derive the present value of future cash flows, and it can…

Q: Mrs. Nash will contribute $200 to her RRSP at the end of each month for 15 years. How much more…

A: The extra amount that she will have due to increased saving is calculated as difference in amount…

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.