Discuss the importance of long range planning for retirement

Q: How can the annual effective yield be calculated?

A: The interest rate attracts the consumers towards the investment or deposit in the economy. In this…

Q: Which of the following statements regarding a nonresident insurance producer is CORRECT? 1.The…

A: Nonresident Agent — an agent who is authorized in a house in which the person doesn't reside.

Q: It refers to annuity that doesn’t start until some time in the future.   a Late Annuity   b…

A: An annuity refers to a contract designed to provide a certain a amount of income which is payable at…

Q: How can APT be used in investment decision?

A: Investment refers to an asset or item whose sole purpose is to generate income for the owner or…

Q: Ratio of change in savings because of change in income is known as _________

A: # consumption and savings are the two main important part of the income. Consumption is that part of…

Q: How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 42 years…

A:

Q: When does the discounted payback period occur?

A: The discounted payback period (DPP) is the length of time it takes (in years) for a project's…

Q: What is meant by an asset’s unadjusted basis? Adjusted basis?

A: Unadjusted basis means the original price of purchasing an asset. This price includes initial price…

Q: Below is some data for Jane. Year 1: pr 15, X 20, py = 25, Y = 30 Year 2: pr 6,Py 30, Income = 1050…

A: Year 1  Pr (X) + Py (Y ) is less than M  Putting the values we get ,  15(20) + 25(30) = 300 + 750 =…

Q: 43. Explain the importance of investing early.asap

A: Investing can be defined as the act of resource allocation, mainly money, with the expectation or…

Q: Hi! Can you help me with the question below? Matt has the choice between receiving $100 now or…

A: Matt has the choice between receiving $100 now or receiving $140 in two years. Simple interest…

Q: Which of the following is NOT a retirement plan? a) 401k plan b) 529 plan c) IRA plan d) 501(c)…

A: Retirement planning is the process of securing life after retirement when the person will be unable…

Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old.…

A: The age of tom = 20 years Total working-age = 50 -20 = 30 years Total not working age = 80 - 50 = 30…

Q: What does the statement “interest rate 10%” signify?   a The rate is effective per year.   b The…

A: Effective Interest rate:- Effective interest rate can be explained as the actual return on the…

Q: Explain the term Present Value of Perpetuities?

A: Answer - Present Value of Perpetuities - It is the cash flow which continue indefinitely. It is…

Q: keep a Renewable Term policy active, the insured must do which of the following? A. Submit a renewal…

A: Renewalable term insurance can offer monetary insurances long before a significant individual…

Q: Living in retirement 25 years Retirement age 65 Annual income $100,000 Interest Rate 6% Need 2…

A: Answer - Need to find- Present value  Given in the question- Living in retirement 25 years…

Q: It is the interest paid in advance. a. simple interest b. perpetuity c. compound interest d.…

A: Interest is the monetary payment, it is made for the privilege of borrowing money. The amount of…

Q: Jack Reminds Samuel that, as an early career professional, he’s only making a fraction of the…

A: Introduction Pension is the sum of money a person receives after leaving active duty. It is a fund…

Q: life insurance option has a lower premium, is only life insurance, and purchased for a specific…

A: Life insurance is a contract between an insurance policy holder and an insurer or an assurer, where…

Q: A worker with an annual discount rate of 8 percent currently resides in Nigeria and is deciding…

A: Given, The discount rate = r = 8% or 0.08 The number of periods = t =3  Earning per worker in…

Q: Required: ; . Calculate the net present value of the investment.

A: Net present value (NPV) is the difference between the present value of cash inflows and the present…

Q: _____________ refers to a pension scheme where benefits are based on a wage indexed average of past…

A: A defined benefit (DB) pension plan is a sort of pension arrangement in which an employer guarantees…

Q: What is the relation between income and life expectancies?

A: The relationship between income and life expectancies can be best explained with the help of the…

Q: An employer-provided retirement savings plan is an opportunity for employees to get a raise an…

A: An employer-funded retirement plan brings in a lot of benefits for the employees. A Retirement plan…

Q: In a(n). as either a fixed dollar or a percentage-of-earnings amount linked to years of seniority in…

A: The labor market is a place where the laborers will be willing to sell their labor power at the…

Q: Which of the following is not a methodology used to determine the amount of necessary life…

A: Life insurance is a monetary apparatus that can assist people with achieving an assortment of money…

Q: Define the term Net Present Worth?

A: Net present worth is defined as present value of the total cash flows over a period of time. In…

Q: According to the Housing Affordability Index (HAI) is it a good time to buy a home in New Jersey?…

A: Median Housing Price in NJ (MEDPRICE)= $500,628 Interest Rate (i) 3.5% compounded monthly = 0.035…

Q: Someone’s uncle leaves them $10,000 in his will, but with a requirement that they invest the money…

A: The IRA is a personal sàvings account that provides tax benefits to people who set àside their…

Q: Which one would you choose? why or why not? a. Present value of 500,000 as a lifetime income due to…

A: I will choose (a) because. Education gives you knowledge, by which you can buy money. Education…

Q: Suppose schmidt owns some land and is trying to decide when to sell it for a shopping center…

A: The interest rate is 5% on financial investment. (Please put in the complete information)If Schmidt…

Q: You save $1500 a year into a 401(k) account that you invest in a mutual fund earning 7% per year.…

A: Here, by analyzing the information, it can be said that: Annuity (A): $1500 Interest rate (i): 7%…

Q: The future value of a dollar as the interest rate increases and the longer the money remains…

A: The relationship between future value and the interest rate and time is positive i.e.. direct. It…

Q: Ratio of change in savings due to the change in income is known as _______

A: Income is given as the sum of consumption and savings.  Y = C + S

Q: How is an Effective Interest Rate calculated?

A: The effective rate of interest is an important concept in economics.  The effective rate of interest…

Q: A 5-year ordinary annuity has periodic cash flows of $100 each year. If the interest rate is 8…

A: In economics, present value refers to the current value of a future stream of cash flows. Future…

Q: An 8 percent coupon bond has a maturity of 6 years. The Bond has a face value of 2,000 and it is…

A: Bond is the financial instrument that firms or organizations raise for selling it to the investors…

Q: Which of he following statements is CORRECT about beneficiary designalions?   A.By naming an…

A: Beneficiary designations:- Irrespective of the wording of the testament, beneficiaries selections…

Q: What are objectives on interest rate spread

A: When talking about interest rate spread, it is considered as the difference in the interest rate…

Q: Which factors affect the yield to maturity (or return on investment?

A: Yield to Maturity provides a benchmark for evaluation of different types of investment instruments.

Q: affect the interest rate charged on loans.   a. Differences in the present value of loans   b.…

A: The cost of borrowing is defined by the rate of interest, which determines how much bigger the…

Q: What is the Decision Rule for Nonsimple Investments?

A: A simple investment refers to the initial cash flows are negative and this is a requirement wherein…