It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your 40-year work span. For simplicity, assume this is an annuity of $2,000 per year, starting with your 26th birthday and continuing through your 65th birthday. Solve, a. What is the future equivalent worth of your Social Security savings when you retire at age 65 if the government’s interest rate is 6% per year? b. What annual withdrawal can you make if you expect to live 20 years in retirement? Let i= 6% per year.

Q: Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

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: Many persons prepare for retirement by making monthly contributions to a savings program. Suppose…

A: Here, Yearly Deposits is $2,000 Interest Rate is 8% Compounding is Continuous Compounding Time…

Q: You want to be able to withdraw $50,000 from your account each year for 20 years after you retire.…

A: Here we will first have to find the present value of annual withdrawals of $50,000 for 20 years.

Q: If Luis Jimenez makes annual deposits of $1,000 into a savings account for 30 years, how much will…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: You are saving for retirement. To live​ comfortably, you decide you will need to save $4 million by…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: You would like to have enough money saved to receive a growing annuity for 25 years, growing at a…

A: Solution-PV of growing annuityi=0.04r=0.12

Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 900000 in a…

A: APR: The annual interest rate that is charged to the borrowers is known as the annual percentage…

Q: ow much must you set aside each year to make sure that you will have $4,000,000 in the account on…

A: Future value of an annuity: It represents the future worth of the annual cash flows made…

Q: If I would like to have $250,000 in my savings account after making contributions for 30 years, what…

A: Present Value = Monthly Contributions * PVAF ( Monthly Rate, number of Months )

Q: You know you will receive $1,450 each month in Social Security payments in retirement. Assuming you…

A: The Present Value of the investment is computed using an Excel formula.  Where, Monthly amount…

Q: You have a 401(k) plan, which is used for retirement savings, at work. If you plan to invest $5,000…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Suppose you are 30 years old and would like to retire at age 60. ​Furthermore, you would like to…

A: Annuity means a series of finite number of payments which are equal in size and made in equal…

Q: You estimate you need to supplement your social security payments with monthly withdrawals of…

A: Given: Monthly withdrawal = $3,420 Interest rate = 6.9% So, monthly interest rate = 0.069/12 = 0.58%…

Q: Please provide working to the solution for the question below: Suppose you are 40 years old and…

A: Solution:- When an equal amount is deposited each period, it is called annuity.  We know, Present…

Q: You will deposit $30,000 per year into an account beginning today that pays 13 percent per year.…

A: Annual deposit (P) = $ 30,000 Annual interest rate (r) = 13% Future value (FV) = $ 1,000,000 Period…

Q: How much must you deposit each year into your retirement account starting now and continuing through…

A: Monthly deposit It is the minimum deposit amount required to pay in an account each month by the…

Q: You estimate you need to supplement your social security payments with monthly withdrawals of…

A: The question is based on the concept present value of annuity payment Formula as, Pv=pmt*1-(1+r)-nr

Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…

A: Future value of annuity due can be calculated by using this equation Future value of annuity due…

Q: Assume that Social Security promises you $40,000 per year starting when you retire 45 years from…

A: Social security is the amount which is given by certain employers in addition to salary that gets…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly.  Note:…

A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: You want to be able to withdraw $35,000 from your account each year for 15 years after you retire.…

A: Given, Amount required each year after requirement us $35000. term of payment is 15 years Rate of…

Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 1000000 in a…

A: Annuity(monthly instalment) is calculated by annuity from future value formula: Annuity from future…

Q: Suppose for an annuity due, you want to have S30,000 in the bank after 20 years. Assuming you make…

A: Time value of money is a concept that helps in determining the value of future cash flows…

Q: You would like to have enough money saved to receive a growing annuity for 25 years, growing at a…

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

Q: You are offered an annuity that will pay $11,000 per year for 24 years (the first payment will occur…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: You plan to place $1,200 per year into a Roth IRA. You expect to earn 6% APR and you will place this…

A: Given, The yearly deposit is $1,200 Rate is 6% Term of investment is 35

Q: Suppose you wish to retire forty years from today. You determine that you need $50,000 per year once…

A: Given information : Years to retirement = 40 years Funds needed after retirement = $50,000 Interest…

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: You are saving for retirement. To live comfortably, you decide you will need to save $3 Million by…

A: Annual deposit is calculated using following equation Annual deposit = FV×i[(1+i)n-1]×(1+i) Where,…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly.  Note:…

A: We will apply the formula for calculating the future value of the money so that we can calculate the…

Q: deposits

A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…

Q: You deposit $5000 each year into your retirement account, starting in one year. If these funds earn…

A: Answer:   Following information are given:   Annual deposit = $5000 Rate = 5% Time ( no of periods)…

Q: If you deposit $250 each month into an individual retirement account (IRA) that earns 4.8% interest…

A: We can use advance calculators or Excel to find the future value asked in the question.

Q: You want to be able to withdraw $35,000 from your account each year for 25 years after you retire.…

A: Given Information:- in the question, you want to withdrawal $35000 each year from you bank account…

Q: You are offered the opportunity to put some money away for retirement. You will receive four annual…

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

Q: Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $60,000 per…

A: Given information: Withdrawal amount is $60,000 each year Number of withdrawals is 31 Interest rate…

Q: Your RRSP will pay an average of 7% per year After you retire when you are 68 years old you plan to…

A: EXCEL FORMULA:

Q: You want to be able to withdraw $30,000 from your account each year for 30 years after you retire.…

A: The amount of the deposit can be calculated by using the present value and future value of annuity…

Q: You want to be able to withdraw $40,000.00 from your account each year for 15 years after you…

A: Time Value of Money (TVM): It is based on a principle that the money in hand now has more value than…

Q: You want to begin saving for your retirement. You plan to contribute $12,000 to the account at the…

A: Since you have asked multiple questions, we will solve the first question for you. Please resubmit…

Q: Use the future value of an annuity due formula to calculate how much (in $) you would have in the…

A: In this question, if the amount is deposit at the beginning of the year then the period we will use…