Create a spreadsheet to find the future value of her IRA 40 years from now, assuming she earns 8.25%. Attach File Browse Local Files Tits, Browse Content Collection
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- Problem 7-04 You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 10 years. Your twin sister does the same starting at age 45 and makes the contributions for 20 years. Both of you earn 6 percent annually on your investment. What amounts will you and your sister have at age 65? Use Appendix A andAppendix C to answer the question. Round your answers to the nearest dollar.Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 65?-Select-You haveYour sister hasItem 3 the larger amount.Question 2You plan to retire 33 years from now. You expect that you will live 27 years after retiring. You want to have enough money upon reaching retirement age to withdraw $180,000 from the account at the beginning of each year you expect to live, and yet still have $2,500,000 left in the account at the time of your expected death (60 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 33 years. You expect that you will be able to earn 12% per year on your deposits. However, you only expect to earn 6% per year on your investment after you retire since you will choose to place the money in less risky investments.Required:Calculate the equal annual deposits you must make each year to reach your retirement goal.Problem 7-03 A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$
- Question 6 John Adams plans to retire at the age of 62. He wants an annual income of $60,000 per year. He believes that he will live to be 87. He will draw the money at the beginning of each year. How much money will he need when he retires in order to support his $60,000 annual life style if he will average 12 percent per year on his retirement account? a. $527,059 b. $470,586 c. $439,800 d. $505,302Practice 1 Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65 (she will retire on her 65th birthday). She would like to be able to withdraw $80,000 from her savings account on each birthday for 20 years following her retirement (the first withdrawal will be on her 66th birthday). Your friend intends to invest her money in the local savings bank which offers 4% p.a. compound semi-annually. She wants to make equal annual deposits on each birthday in a new savings account she will establish for her retirement fund. If she starts making these deposits TODAY and continues to make deposits until she is 65 (the last deposit will be on her 65th birthday), what amount must she deposit annually to be able to make the desired withdrawals upon retirement? Any intermediate steps should be rounded to 4 or more decimal places.Question 9 Five years ago, Betty saved $10,000 in an account that pays 5% compounded monthly. Now he intends to add another $x into the account. Determine the value of x if the account will amount to $40,000 in 10 years’ time.
- question 1 1a. It is now January 1, 2018 you plan to make deposits of $500 each, one every 6 months, with the first payment being made today . if the bank pays a nominal interest rate of 12% but uses semi annual compounding, how much will be in your account after 10 years? 1b. M.Mc. Donald has just started working with BNS as a sales rep. and is just trying to cathc up on money for retirement. BNS offers him a pension plan with an annuity that is guaranteed to earn 7% interest compounded anually. He plan to work for 10 years before retiring and would then like to be able to draw an income of $90'000 per annum for 15 years. How much must be deposited per annum into his retirement fund to accomplish this? 1c. Abigail wish to establish a trust fund from which her daughter can withdraw $4000 every six months for 13 years, when she reach 13 years old. At the end of which she will receive the remaining money in the trust, which you would like to be $45'000. The trust will be invested at…Q) At the end of year 5 Joe starts to withdraw $14500 from his savings account. If he takes out the same amount each year and the interest rate is 14%, what was Joe's initial investment assuming the account will be depleted at the end of year 25 Solve on the white paper onlys.Question 31 Bobby's grandmother deposited $100 in a savings account for him when he was born. The money has been earning an annual rate of 12% interest, compounded quarterly, for the last 25 years. He is getting married and would like to take his new wife on a holiday. How much does he have today in the account to use? Round your answer to two decimal places. Do not include commas, spaces or $ in your answer.
- QUESTION 14 You purchase a home priced at 1,750,000 Php. You paid 10% as the down payment and the remaining balance under a bank amortization plan to be paid in 8 years. At an effective quarterly interest rate of 1.5%, How much interest will you pay in the 2nd year Solve on white paper or typed. Not in excelSuppose you want to have $400,000 for retirement in 10 years. Your account earns 9% interest. Feel free to use the Online Basic Financial Calculator a) How much would you need to deposit in the account each month? S b) How much interest will you earn? SProblem Outline Part A By the end of this year, you will be 35-years old, and you want to plan for your retirement. You wish to retire at the age of 65, and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened your retirement account with a 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate throughout your retirement years. What is the face value, not the actual value, of the bond that you will be investing in? Calculate the monthly payment in your retirement account to be able to achieve the plan mentioned above. How much will your inheritors receive? Problem Outline Part B Suppose you think if you were to retire right now, you would have needed $50,000 each year to supplement your social security and maintain your desired…