How much should annual premium payments be based on 3% annual interest and 1958 CSO mortality?
Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…
A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate
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: A retired couple plans to supplement their retirement income with monthly withdrawals of the…
A: Retirement Income - It the amount deducted from the employee's current salary and to park in such…
Q: An engineer who is saving for her retirement plans to deposit $500 every quarter, starting quarter…
A: We have to calculate the future value of $500 paid every quarter for 25 years. Interest is 6%…
Q: An engineer planning for retirement decides that she wants to have income of $100,000 per year for…
A: Given information: Annual income of $100,000 for 20 years First withdrawal is beginning 30 years…
Q: a. A pension fund has to pay out $750,000 to the retirees at the end of every month for the next 50…
A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…
Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10…
A: The value of current asset for the future date based on the growing interest will be known as the…
Q: To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate…
A: A concept through which it is studied that the current worth of money is higher than its future…
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: You intend to make the annual maximum contribution of $6,000 to your Roth IRA (individual retirement…
A: Maximum Contribution per Year(PMT) is $6000 Time Period(NPER) is 30 years Rate is 10 years To…
Q: An individual's salary is now $50,000 per year and he anticipates retiring in 30 more years. If his…
A: The amount which will be required at the time of retirement is that amount which a person expects to…
Q: Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of…
A: Difference between the annual rate and effective annual rate are compounding.…
Q: By the end of this year, you would be 35 years old and you want to plan for your retirement. You…
A: Given information: The annuity sum required after 30 years for 20 years is $50,000, The annual…
Q: Your employer offers a 401(k) plan with a 17% match, and you set a goal of retiring in 35 years with…
A: Given: Value today = $1.1 million or $1100000 Inflation rate = 1.5% Annual rate = 1.2% Number of…
Q: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…
A: Value of retirement fund is future value of yearly savings
Q: If the professor’s remaining life expectancy is 20 years, what is the monthly interest rate on this…
A: Present Value of Annuity: It is the present worth of future annuity payments. It is arrived at by…
Q: Your employer offers a 401(k) plan with a 16% match, and you set a goal of retiring in 31 years with…
A: 401(k) is a type of retirement plan which allows investor to accumulate funds for retirement by…
Q: Beginning a year from now, Bernardo O’Reilly will receive $20,000 a year from his pension fund.…
A: Present value is the current worth of future payments from the specific investment.…
Q: . You are able to choose between two retirement policies described below. Policy A: Starting 35…
A: Policy A - Present value of annuity = P * [1-1/(1+r)^n]/r where, r = rate of interest 6% n = no. of…
Q: Determine the present value of future contributions to a pension plan for a person aged 35, earning…
A: In the below table, the earnings has been increased by 3% every year from Year1 onwards and 5%…
Q: You decide to provide yourself with a retirement account by depositing X into an account at the…
A: An immediate annuity is an ordinary annuity where the payments start immediately after being…
Q: unt and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments…
A: Given as, Annuity sum required after 30 years for 20 year is $50,000 Annual coupon rate is 6%…
Q: Mr. Handsome would like to accumulate $1 million in his pension fund. If the annual interest rate is…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: what is the value of your retirement plan after the 40 years?
A: A retirement plan is the planning for retirement. It is an investment plan, whereby the investor…
Q: A recent college graduate hopes to have 200,000 saved in their retirement account 25 years from now…
A: Here, Future value (FV) = 200,000 Number of years = 25 years Contribution per month = 150 Interest…
Q: Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if…
A: This problem involves the application of annuity and perpetuity. The present value of a perpetual…
Q: A retiree invested P400,000 in a pension plan that earns 15% interest compounded monthly. If pension…
A: Given: Present value of a pension plan = P400,000 Rate of return "r"= 15% compounded monthly Number…
Q: A retired couple plans to supplement their retirement income with monthly withdrawals of the…
A: In this question, the retired couple plans their income if they have a balance of 200000 in the…
Q: To prepare for retirement, you are going to deposit money into a pension plan account every month…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Assume that a pension plan offers to pay $500,000 on a person's retirement (his/her sixty-fifth…
A: a) An amount of $500,000 would be received on his 65th birthday or an equivalent annual payment…
Q: what will be the amount in the account upon your retirement?
A: Future value of the retirement account is the total value that an individual will be able to…
Q: deposits
A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…
Q: Assume that a pension plan offers to pay $500,000 on a person's retirement (his/her sixty-fifth…
A: Annuity: It is a payment made in series at equal intervals.
Q: our company’s pension plan earns 4.3 % interest per year, compounded quarterly. a) You…
A: In the first part, the Present Value of the payments is to be computed. In the second part , the…
Q: A 35-year old man is considering a lavish personal pension plan paying 50,000 monthly annuities for…
A: Since you have asked a question with multiple sub-parts, we will solve the first three questions for…
Q: A retirement plan guarantees to pay to you or your estate a fixed amount for 20 years. At the time…
A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…
Q: A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: A person joins a pension plan at age 40 (40th birthday). How much will s/he have to pay into the…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Assume that you contribute $150 per month to a retirement plan for 15 years. Then you are able to…
A: This question provides that $ 150 per month for 15 years and increases the $ 350 per month for next…
Q: Your employer contributes $50 a week to your retirement plan. Assume that you work for your employer…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: Find the amount needed to deposit into an account todaythat will yield pension payments of $45,000…
A: Excel Spreadsheet:
Q: Jennifer's pension plan is an annuity with a quaranteed return of 5% per year (compounded monthly).…
A: Monthly Deposit = 300 Time period of saving (N) = 45 years i.e. 540 months Time Period of Pension…
In a retirement plan, a person who is 25 years old has to pay a premium of 35 years at the beginning of each year up to the age of 60, and from the age of 60 to be paid a lifetime pension of $ 15,000 em 3% at the beginning of each year and a pension bonus of $ 500,000 at age 60. How much should annual premium payments be based on 3% annual interest and 1958 CSO mortality?
Thank you so much.
Step by step
Solved in 2 steps
- Determine the present value of future contributions to a pension plan for a person aged 35, earning 30.000$ per year and expecting to retire at 65. The pension plan requires contributions of 5% of salary and the employee expects to receive average annual salary increases of 3%. Use an annual effective rate of interest of 7% and assume contributions are made at the end of each year.To insure you, Assurances Nochance Ltd offers the following plan: you will pay 20 annual payments of $8,000 starting one year from today. Then, in year 21, you or your heirs will receive a pension for the following 15 years. The discount rate used by the company to calculate your pension is 6%. (a) What is the size of your annual pension? (b) Ifyoucouldtakeaone‐timelumpsumpayment25yearsfromtodayinsteadofthepension,how high would the equivalent lump sum payment have to be?.Suppose your mother has worked for 40 years and has accumulated $1,000,000. She wishes to begin receiving an annual payment beginning next year, and continuing for another 20 years. If a pension plan will guarantee her an annual interest rate of at least 5% effective, what is her payment?
- Your employer contributes $500 per month, at the beginning of each month, to a retirement fund on your behalf. The contributions earn interest at a rate of 6% per year, compounded monthly. At the end of twenty years, what will be the balance of the fund? Group of answer choices $69,790 $232,175 $70,139 $220,713 $231,020The 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.Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 34 years with an amount of money which has the same buying power that 1.1 million dollars has today. If the account earns an annual interest rate of 1% and the expected annual rate of inflation is 1.7%, how much should YOU contribute each month to the 401(k)?
- A worker age 40 wishes to accumulate a fund for retirement by depositing $3000 at thebeginning of each half a year for 25 years. Assuming all payments are certain to be made, findthe amount he will pay, if the effective interest rate is 8% compounded annually.To insure you, Assurances Nochance Ltd offers the following plan: you will pay 20 annual payments of $8,000 starting one year from today. Then, in year 21, you or your heirs will receive a pension for the following 15 years. The discount rate used by the company to calculate your pension is 6%. (a) What is the size of your annual pension? (b) If you could take a one‐time lump sum payment 25 years from today instead of the pension, how high would the equivalent lump sum payment have to be?You wish to retire after 22 years; at which time you want to have accumulated enough money to receive an annuity of $68,000 a year for 25 years of retirement. During the period before retirement, you can earn 6 percent annually, while after retirement you can earn 4 percent on your money. What annual contribution to the retirement fund will allow you to receive the $68,000 annually?
- A 35-year old man is considering a lavish personal pension plan paying 50,000monthly annuities for 5 years that should start when he reaches 55. He makes quarterlydeposits now on the account bearing a constant interest rate of 2.5% per annum for 5-years and plans to place the total balance accrued on time deposit. All interests are at 2.5%per annum except for the time deposit that bears 8.0% annual interest. 1. What is the present value of his pension plan?2. What is the present value of the 5-year quarterly deposits?3. How much is the 5-year quarterly deposits?4. Construct a cash flow diagram for the repayment scheme5. Construct the amortization table for the deposits.Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%, what is the present value of your retirement savings? please answer fast i give upvoteAssume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%. The future value at retirement (age 65) of your savings is:
