Jessica is 25 year old now and he wants to start saving up for her retirement fund.She will retire at the age of 55. She aims to withdraw $110,000 from her savings account on each birthday for 25 years following her retirement.It is to be noted that the first withdrawal will be held on her 56 th Birthday. Jessica wants to to invest her money in the investment fund where she will get 7 percent interest per year and she will make equal annual end of year deposit each year for her retirement fund.a.If she starts making these deposits on her 26th birthday continuing depositing till she is 55 ,what amount she should start depositing each year to accumulate the retirement fund ?b.Lets say, Jessica has just got huge amount of money from her family. Rather than making equal annual payments, she has decided to make one lump sum payment on her 25th birthday to cover her retirement needs. What amount does she have to deposit?c.Lets say, her employer will contribute $1,000 profit sharing into her account every and also she expects a $200,000 distribution from inheritance on her 45th birthday, which she will also put into the retirement account. What amount must she deposit annually now to be able to make the desired withdrawals at retirement?
Jessica is 25 year old now and he wants to start saving up for her retirement fund.She will retire at the age
of 55. She aims to withdraw $110,000 from her savings account on each birthday for 25 years following
her retirement.It is to be noted that the first withdrawal will be held on her 56 th Birthday. Jessica wants to
to invest her money in the investment fund where she will get 7 percent interest per year and she will make
equal annual end of year deposit each year for her retirement fund.a.If she starts making these deposits on
her 26th birthday continuing depositing till she is 55 ,what amount she should start depositing each year to
accumulate the retirement fund ?b.Lets say, Jessica has just got huge amount of money from her family.
Rather than making equal annual payments, she has decided to make one lump sum payment on her 25th
birthday to cover her retirement needs. What amount does she have to deposit?c.Lets say, her employer
will contribute $1,000 profit sharing into her account every and also she expects a $200,000 distribution
from inheritance on her 45th birthday, which she will also put into the retirement account. What amount
must she deposit annually now to be able to make the desired withdrawals at retirement?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
