Kate is 28 years old today and is beginning to plan for her retirement . She wants to set aside an equalamount at the end of each of the next 37 years so that she can retire at age 65 . She expects to live to the maximum ageof 90 and wants to be able to withdraw $250,000 per year for 25 years from the account on her 66th through 90th birthday. The account is expected to earn 5% annually. Determine the size of the annual deposit by kate

Q: Following her 18th birthday, Madison began investing $44 at the end of each week in an account…

A: The computation is as follows: Hence, the retirement nest egg is $511041.72.

Q: wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10…

A: Deposit A Amount = 10,000 End of year deposits N = 10 years   Deposit B Amount = 10,000 End of year…

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…

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A: The question is based on the concept of Annuity in Financial Management.

Q: Mr. Wilks is 30 years old today and wants to set aside an equal amount at the end of each of the…

A: Computation of present value at the age of 60 is as follows:

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A: Calculation of Amount at the end of 17 years:To calculate the amount at the end of 17 years, the…

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A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

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A: Retirement fund:  A retirement fund is a particular fund into which people contribute money in order…

Q: James plans to fund his individual retirement account, beginning today, with 20 annual deposits of…

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

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A: Present value =Future amount/(1+r)n n=29 years  r=rate of interest =1.4%

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A: We need to use future value of ordinary annuity formula to calculate total saving value at the time…

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A: Nominal Rate = 10% Compounded Semi Annually Number of compounding periods = 2 Amount to withdraw…

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A: Using excel nper function

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A: we can use discounting techniques to value the monthly deposits.

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A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: ang Daiyu expects to retire in 30 years. She has decided that she would like to retire with enough…

A:

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

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A: The question can be solved in excel as follows:

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A: Retirement refers to the period after an employee terminates its current job either voluntarily or…

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A: In order to find how much money she will have one has to calculate the future value after 20 years.

Q: Suppose your friend is celebrating her 35th birthday today and wants to start saving for her…

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

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A: The amount needed at retirement will be equal to the present value of all the payments needed after…

Q: On Juan’s 26th birthday, he invested $7,500 in a retirement account. Each year thereafter he…

A: Rate of interest=5%,0.05               Time=35 Number of years=10Amount=Principal1+rateyears…

Q: When she turned 30, Arwen started depositing $400 per month in a retirement account that earns 2.4%…

A: An annuity is a series of cash flows that contain a fixed amount for a specific duration at equal…

Q: At the time of her grandson's birth, a grandmother deposits $12,000 in an account that pays 3.5%…

A: Amount deposited =$12,000 Interest rate = 3.5/12 = 0.21666667% Years = 21 Terms of compounding =…

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A: Investment means engaging your funds to accumulate the required amount when needed. It follows the…

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A: We get future value of depositsUse FV function in excel Type =FV and press tab key. Type 6%,  (this…

Q: An employee plans to retire in 30 years and wants to create a personal retirement fund where he can…

A: First we need to calculate present value of annuity of withdrawal by using this formula Present…

Q: Over the years, Samuel and Elizabeth Paget, of Elon, North Carolina, have accumulated $200,000 and…

A: PV is the current worth of cash flows that are expected to occur in the future. For calculating…

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A: According to the time value of money concept, the value of money today will be more worth as…

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A: An Annuity Due is a stream of regular periodic payments made at a beginning of period for a…

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A: Retirement means quite simple end of a phase of working for a time of years.This span of retirement…

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Q: Robin wishes to accumulate a sum of $450,000 in a retirement account by the time of her retirement…

A: The value of an asset at a future date is called future value.

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A: Future Value of Annuity: It represents the future worth of the present stream of annuity cash…

Q: s

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

Q: How much money did he have for retirement?

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A: The future value of annuity due is the total future value of each cash flow which is made at the…

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A: Computation:

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A: We will use the concept of time value of money here. As per the concept of time value of money the…

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Q: Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans…

A: We need to calculate future value of investment by using this formula FV = PV(1+i)n where FV =Future…