An engineer will deposit 10% of her salary each year into a retirement fund. If her current annual salary is $95,000 and she expects that it will increase by 6% each year, what will be the present worth of the fund after 30 years if it earns 6% per year?

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

A: First year retirement fund deposit (D1) = $180000 * 11% = $19800 Growth rate (g) = 2% n = 13 years r…

Q: Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from…

A: Working note for calculations. Note for Converting Quarter into years:- Number of year to deplete =…

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: Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She…

A: Given data; rate of interest = 4% payment after retirement= $20,000 number of years after retirement…

Q: Francine currently has $70,000 in her 401k account at work, and plans to contribute $7,000 each year…

A: Current amount (PV) = $ 70000 Annual deposit (P) = $ 7000 Interest rate (r) = 6% Number of annual…

Q: Millet wants to provide a P200,000 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: Skeng would like to receive equal instalment of $250,000 at the end of each year for the next 8…

A: FORMULA PVA = P*[1-(1+R)-N]/R Where PVA - Present value of annuity P - Annual payment amount i.e.…

Q: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…

A: Future value is the expected value of current sum in a future date at a given rate of return. Given:…

Q: how much will the three project payments be worth at the time of her retirement?

A: Introduction: The term future value of annuity can be defined as the value of payments at some…

Q: if you owe $35,000 payable at the end of eight years, what amount should your creditor accept in…

A: Amount due after 8 Years (FV) = $ 35000 Interest rate (r) = 13% Period (n) = 8 Years

Q: A retiree wants to purchase an annuity that will provide her with end-of-year payments for the next…

A: Number of year end payment = 30 Years Rate of return = 5.5% First annual payment = $ 15,000 Annual…

Q: Robert wants to deposit $300 into a fund at the beginning of each month. If he can earn 10%…

A: Given information : Monthly deposit = $300 Interest rate = 10% Tenure = 6 years

Q: A couple will retire in 40 years; they plan to spend about $35,000 a year in retirement, which…

A: Now problem needs to solved in two steps first calculate Present value of retirement fund and next…

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: You deposit $13,000 annually into a life insurance fund for the next 10 years, after which time you…

A: The future value is the value of the amount in future that has to be paid or received at future.

Q: Freya plans to invest $1,600 every six months for 25 years. How much will this investment be worth…

A: Given information: Investment every 6 months : $1,600 Time period : 25 years Rate of interest : 8.2%

Q: Starting on her 30th birthday, a woman will invest an amount every year on her birthday in an…

A: future value of annuity formula: future value of annuity=Annuity×1+rn-1r×1+rwhere,r=rate of…

Q: A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which…

A: Time value of money is the concept widely followed by the management and many companies to determine…

Q: Amy Monroe wants to create a fund today that will enable her to withdraw $25,000 per year for 8…

A: Present value = Future annual withdrawals amount * Present value of discounting factor (8%, 5th to…

Q: amie is saving ₱10,000 at the end of each month. How soon can he retire if he wants to have a…

A: Monthly saving = P 10,000 Future value (FV) = P 250,000 Annual interest rate = 4.36% Monthly…

Q: Francine currently has $70,000 in her 401k account at work, and plans to contribute $5,000 each year…

A: Future value of single sum/lump sum investment and annuity payments can be calculated by using this…

Q: Stephanie is going to contribute $160 on the first of each month, starting today, to her retirement…

A: Retirement refers to the period after an employee terminates its current job either voluntarily or…

Q: Jennifer's pension plan is an annuity with a guaranteed return of 6% per year (compounded monthly).…

A: Here, Jennifer is depositing $300 monthly in an account at a rate of 6% per year for a period of 35…

Q: A young couple wants to have a college fund that will pay $20,000 at the end of each half-year for 8…

A: Here, The interest Rate is 6% Required Amount is $20,000 at the end of each half-year for 8 years…

Q: Kristen plans to retire at age 56, and estimates that $50,400 a year in retirement for 25 years will…

A: Current Age = 27 Retirement Age = 56 Time Period for savings = 29 years or 348 months   Retirement…

Q: Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her…

A: Annual deposit (P) = RM 4,800 Annual interest rate (r) = 6% Number of annual deposits (n) = 15

Q: Rosina plans on saving $2000 a year and expects to earn an annual rate of 6.9 percent. How much will…

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

Q: Sally has decided to invest $70 at the end of each mouth into a retirement plan that has an annual…

A: Computation:

Q: Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How…

A: Let's begin by calculating Effective Interest rate Formual for Effective Interest Rate = (1  +…

Q: Jamie wants to have $800,000 for her retirement in 25 years. How much should she save annually if…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

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: Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $1,000,000 in his retirement…

A: Given: Retire in : 30 years Amount : $1000,000 Interest rate : 12%

Q: Maria Anguiano's current salary is $80,000 per year, and she is planning toretire 25 years from now.…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Q: Polin needs to accumulate$10,000. To do so she plans to make deposits of $1250 per year with the…

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

Q: Suppose Jennifer deposits $500 in an account at the end of this year. $400 at the end of the next…

A: We need to use compound interest formula to solve this problem A =P(1+i)n Where A= final payment…

Q: Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly).…

A: To Find: Monthly Payout or how much she will receive per month

Q: Soledad decides to save P2,700 at the end of every 6 months, which is the amount paid into her…

A: Future Value = P x [{(1 + r)^n} - 1] / r Here, P = Periodic Payment i.e. P2700 r = Periodic Interest…

Q: A young couple wants to have a college fund that will pay $35,000 at the end of each half-year for 8…

A: Here, Required Amount in every six months for 8 years is $35,000 Interest Rate is 6% Time Period for…

Q: Don Harrison's current salary is $60,000 per year, and he is planning to retire 25 years from now.…

A: Excel Spreadsheet:

Q: Izzie contributes $100 every other week from her paycheck to her retirement savings account. which…

A: