Future value. You are a new employee with the Metro Daily Planet. The Planet offers three different retirement plans. Plan 1 starts the first day of work and puts ​$1,100 away in your retirement account at the end of every year for 40 years. Plan 2 starts after 10 years and puts away ​$1,600 every year for 30 years. Plan 3 starts after 20 years and puts away $3,600 every year for the last 20 years of employment. All three plans guarantee an annual growth rate of 6​%.   a.  Which plan should you choose if you plan to work at the Planet for 40 ​years? b. Which plan should you choose if you plan to work at the Planet for only the next 30 ​years? c. Which plan should you choose if you plan to work at the Planet for only the next 20 ​years? d. Which plan should you choose if you plan to work at the Planet for only the next 10 ​years? e. What do the answers in parts​ (a) through​ (d) imply about​ savings? a.  Which plan should you choose if you plan to work at the Planet for 40 ​years?  ​(Select the best​ response.)     A. Plan 1 because it offers the highest future value.   B. Plan 2 because it offers the highest future value.   C. Plan 3 because it offers the highest future value.   D. Any one of the three plans because they offer the same future value.

show all excel formulas/ work answering the following:  Saving For Retirement You are offered the opportunity to put some money away for retirement. You will receive five annual payments of $25,000 each beginning in 40 years. How much would you be willing to invest today if you desire an interest rate of 12%?

Your company’s pension plan earns 4.3 % interest per year, compounded quarterly.      a)  You would like to receive payments of $40,000 quarterly while retired.  If you would like these payments paid out over 25 years, what amount of money will you need in your pension fund at the beginning of your retirement years?     Give the answer correctly to 2 decimal places, and do not use the $ sign in the answer box. The money you will need at the beginning of your retirement years is  Blank 1. Calculate the answer by read surrounding text. dollars.        b)  Use your answer from part a to help you to determine how much you should put into your pension fund quarterly during your working years to reach your retirement goals.  Assume you are planning to work for 30 years.     Give the answer correctly to 2 decimal places, and do not use the $ sign in the answer box.     The amount you should deposit quarterly during your working years is  Blank 2. Calculate the answer by read surrounding text.…

OHaganBooks.com has just introduced a retirement package for its employees. Under the annuity plan operated by Sleepy Hollow, the monthly contribution by the company on behalf of each employee is $700. Each employee can then supplement that amount through payroll deductions. The current rate of return of Sleepy Hollow's retirement fund is 7.1%. Jane Callahan, the website developer at OHaganBooks.com, plans to retire in 10 years. She contributes $1,000 per month to the plan (in addition to the company contribution of $700). Currently, there is $40,000 in her retirement annuity. How much (to the nearest dollar) will it be worth when she retires? (Assume interest is compounded monthly.) $

The worker aged 45 wishes to accumulate a fund for retirement by depositing 100EUR at the beginning of each month for 20 years. Starting at age 65 the worker plans to make monthly withdrawal at the beginning of each month for next 15 years. Assuming that each payments are certain to be made, find the amount of each withdrawal if the effective rate of interest is 5% during the first 10 years but only 3% thereafter. Also, solve this problem assuming that he will spend 4000EUR being exactly 65.

You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period.

You MUST use the TI BA II calculator features (N, I/Y, PV, PMT, FV, AMORT) to solve questions whenever possible. 1. Seanna O'Brien receives pension payments of $3,200 at the end of every six months from a retirement fund of $50,000. The fund earns 7% compounded semi-annually. What is the size of the final pension payment? 2. For how many years will Prasad make payments on the $28,000 he borrowed to start his machine shop if he makes payments of $3,400 at the end of every three months and interest is 8.08% compounded semi-annually?

A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now by contributing $150 per month in a 401(k) plan. The goal is to earn 10% annually on the monthly contribution. Will they have the $200,000 at the end of the 25 years?

(Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Life box in thischapter, you have decided to invest $4,700 at the end of each year into a Roth IRA for the next 40 years. If you earn 8 percent compounded annually on your investment, how much will you have when you retire in 40 years? How much will you have if you wait 10 years before beginning to save and only make 30 payments into your retirement account?

A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 23.04 years and pool the money into a savings account that pays 3.09% APR. They plan on living for 28.39 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Yearly Contribution Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $24,614.86 $183,591.46 $306,050.80 $1,000.00 $10,000.00 $15,000.00 APR 6.06% 7.55% 5.06%