Your uncle has $375,000 and wants to retire. He expects to live for another 25 years and to earn 7.5% on his invested funds. How much could he withdraw at the end of each of the next 25 years and end up with zero in the account?

Q: rk. He plans to retire in 30 years.   a.)Type in the EXACT for

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: Jimmie has a job at an advertising agency earning $54,000 per year. Jimmie is currently 26 years old…

A: amount of corpus needed at retirement = 75,000/0.065 (interest/interest rate) amount of corpus…

Q: Alex invested $10,500 in an account that pays 6 percent simple interest. How much money will he have…

A: Simple interest is the method of calculating interest on the amount of investment. A fixed amount is…

Q: A manager retired at age 65, and has her retirement savings of $650,000 invested in a mutual fund…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Ted has a nest egg of 1,000,000 in liquid assets and will be in retirement for 30 years. Using 5.5%…

A: To keep her nest egg amount of $1,000,000 intact, Ted needs to withdraw 5.5%/12 of the liquid asset…

Q: Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6…

A: Since Gabriela wants to withdraw a specific amount after a certain period of time, thus, it is…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: Ordinary annuity would be considered as the annuity payment made at the end of the year and annuity…

Q: Becky Scholes has $150,000 to invest. She wants to be able to withdraw $12,500 every year forever…

A: Given details are: Present value of investment = $150000 Every year cashflow = $12500 From above…

Q: Jin decided to sell their farm and to deposit the fund in a bank. After computing the interest, they…

A: The provided information are: Withdrawal amount=P480000 for 8 years Starting at the end of 6 years…

Q: At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If…

A: In finance, a trust is considered as an arrangement between a third party, a trustee, and the…

Q: how much will John have in his retirement account at age 60?

A: Present age is 25 Rate of return = 8% Retirement age = 60

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: i. Given Annuity=400,000 Interest rate=10% p.a. No. of years=5 FVAn=A1+rn-1r where FVAn=Future…

Q: Mr. Smith has saved $8,000 each year for 10 years. Two years after the saving period ended, Mr.…

A: Final withdrawal will be sum of future value of savings at the final year less sum of future value…

Q: Your uncle has $338,437.45 and wants to retire. He expects to live for another 25 years, and he also…

A: As the withdrawals are being made at the start of each month this is in the form of an annuity due.…

Q: Denise has $180,983 saved for her upcoming retirement and will make no further contributions. She…

A: Interest rate = 5% compounded semiannually Annuity amount (A) = $5000 per quarter for 20 years (80…

Q: Your uncle has P375,000 and wants to retire. He expects to live for another 25 years, and he also…

A: This is annuity due  Using excel PMT function to calculate amount withdraw

Q: Sven accumulated $10,500 in credit card debt. If the interest rate is 3.45% per year and he does not…

A: Compound interest can be defined as the addition of interest to the principal balance. It can be…

Q: You are 25 and plan on retiring at the end of forty years when you are 65.  To save for retirement,…

A: In this question one has to solve for the present value for the annuity of the last 25 years and…

Q: Alicia has $350,000 saved for retirement in an account earning 3.2% interest, compounded quarterly.…

A: Present Value of Annuity = Annuity Amount * [ {1 / ( 1 + periodic interest rate ) } + {1 / ( 1 +…

Q: Bob has saved a total of ₱2,550,000.00 for retirement. He put the money in a mutual fund which pays…

A: We need to use annuity formula given below to calculate size of monthly withdrawal PMT…

Q: Charles wants to retire in 17 years. At that time he wants to be able to withdraw​ $22,000 at the…

A: Here, Retirement will be in 17 years Amount withdrawn is $22,000 Time duration of withdrawals is 19…

Q: Your friend bought $7,000 worth of mutual funds with a redemption fee of 8 percent if she sells…

A: Redemption Fees of 8% shall apply only if she sells within the first year from the date of purchase.…

Q: John wants to have the financial ability to withdraw $80,000 per year forever beginning 30 years…

A: The formula to compute present worth of project with infinite life period as follows: Capitalized…

Q: John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings…

A: John age = 25 years he saved up to = $10000     annual interest rate = 6% 0.06/12 = 0.005  every…

Q: Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be…

A: To withdraw some annual amounts after retirement and to leave some amount after 25 years of his…

Q: Your uncle has $795,000 and wants to retire. He expects to live for another 25 years and to earn…

A: Present value (PV) = $795,000 Interest rate (r) = 7.5% Number of annual withdrawals (n) = 25

Q: Kyle needs to have ₱ 37,000,000 for retirement in 10 years. His account earns 3% interest.  How…

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

Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound…

A: It will take 6.69 years for Jacob to reach 6500 dollars

Q: Abu have RM250,000 and he expects to retire at the end of this year. He will live for another 30…

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

Q: 4. Rodel decided to sell their farm and to deposit the fund in a bank. After computing the interest,…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: ne began to save for his retirement at age 30, and for 13 years he put $ 250 per month into an…

A: Future value of annuity is the future value of all the stream of cash flow. Future value of annuity…

Q: Gil decided to sell their farm and to deposit the fund in a bank. After computing the interest, he…

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

Q: Your uncle has $300,000 invested at 7.5%, and he now wants to retire.  He wants to withdraw $53,750…

A: In this problem we have to calculate present value FACTOR and from that we will get required period.

Q: Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year…

A: in this we have to calculate amount of retirement needed and calculate the present value of that.

Q: Your father's employer was just acquired, and he was given a severance payment of $375,000, which he…

A: A concept that helps to measure the present or future value of the cash inflow and outflow is term…

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: s

A: Given  n =30 i =11%   Now Find the value of his account when he is 60 years old.

Q: Your aunt has $550,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000…

A: Given: Particulars Amount Present value(PV) $550,000 Interest rate (Rate) 5.50% Payment…

Q: A man has deposited ₱50 000 in a retirement income plan with a local bank. This bank pays 9% per…

A: The provided information are: Deposit = 50,000 Rate of interest = 9% = 0.09 Time period = 12

Q: You need P4,000 per year for four years to go to college. Your father invested P5,000 in 7% for your…

A: Value of father's investment at 17th year is the future value of money at 17th year. It is given by…

Q: Joe Hernandez has inherited $25,000 and wishes to purchase an annuity that will provide him with a…

A: Time value tells that money received today is of more value than that of receiving the exact value…

Q: Bill is twenty-five years from retirement; in order to retire, Bill needs ngs account when he…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Leonard wants to have $400,000 in his RRSP when he retires in 31 years. How much must he deposit at…

A: Here, Required Amount (FV) is $400,000 Time Period (n) is 31 years Interest Rate (r)  is 4.8%…

Q: John Jones has just retired after many years with the telephone company. His pension funds have a…

A: Annuity refers to series of equalized payments that are made at end or begin of period for constant…