Lynn estimates that when she retires at age 60, she will have $165,766.18 in her retirement account. This account earns 6% annual interest compounded yearly. Her insurance company predicts that she will live until age 85. She doesn’t want to outlive her income, so she allows another 3 years of life beyond the insurance company’s estimate. How much money will Lynn be able to withdraw from her account each year?

Q: Tracy wants to have $400,000 when she retires in 40 years' time. How much should she deposit at the…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: how long in years and months will she receive the payments

A: RRSP: RRSP stands for Registered Retirement Savings Plan. RRSP is a kind of retirement savings and…

Q: At age 18, Susan did nothing. She waited until she was 28 to start depositing $2000 per year at the…

A: Annuity, A = $ 2,000Interest rate, r = 12%Number of annuities = n = 65 - 28 = 37

Q: (i) Determine how much will his daughter be able to withdraw each year starting in year 18 and…

A: In step 1, calculate the amount that is saved till year 17 .i.e the future value of the annuity of…

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…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: Ordinary annuity would be considered as the annuity payment made at the end of the year and annuity…

Q: Jamie is the beneficiary of P1,000,000 insurance policy. Instead of taking the money as lump sum,…

A: Given, Amount of insurance policy is P1,000,000 Term is 10 year 5% compounded annually.

Q: To save money for her son's college tuition, Nicole invests $96 every month in an annuity that pays…

A: Future value of investment includes the amount deposited and interest being accumulated over the…

Q: Magnus wishes to have $1,500,00 when he retires in 44 years. What are the monthly payments he must…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = 150000 n = 44 r…

Q: Ivana deposits $2000 annually into a Roth IRA that earns 6.85% compounded annually. Due to a…

A: Annual deposit for 10 years = $ 2000 Annual interest rate = 6.85% Period of future value = 25+10 =…

Q: Sherry has a goal of retiring with $375,394 by making weekly deposits into an investment account…

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

Q: After retiring, Gabriella wants to be able to withdraw $7,000.00 every quarter from her account for…

A: Future Value: It is  the worth of a resource at a particular date.  It estimates the ostensible…

Q: Onin plans on retiring on his 60th birthday. He wants to put the same amount of funds aside each…

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

Q: Your uncle has $338,437.45 and wants to retire. He expects to live for another 25 years, and he also…

A: As the withdrawals are being made at the start of each month this is in the form of an annuity due.…

Q: After retiring, Rosetta wants to be able to withdraw $4,000.00 every month from her account for 26…

A: Amount to withdraw per month "PMT" is $4,000 Time period is 26 years Interest rate is 6% Compounded…

Q: Leon and Heidi decided to invest $3,250 annually for only the first nine years of their marriage.…

A: The future value is considered as the sum of its present value P, after growing at compounded…

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: Currently, Ally Gator has saved $15,000 in her retirement account. Ally plans on saving $6000…

A: The present value of cash flows presents the discounting value of future cash flows that arises in…

Q: Emek is planning to retire in 15 years. She decides to start saving toward building up a retirement…

A: Here,

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

A: Interest rate = 5% compounded semiannually Annuity amount (A) = $5000 per quarter for 20 years (80…

Q: Eugene began to save for his retirement at age 27, and for 14 years he put $ 275 per month into an…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: After retiring, Valeria wants to be able to withdraw $36,500.00 every year from her account for 27…

A: Amount to withdraw every year "PMT"  is $36,500 Time period "N" is 27 years Interest rate "I/Y" is…

Q: EZ Leifer plans to retire at the age of 65 and believes he will live to be 90.  EZ wants to receive…

A: Present value of annuity due = P + [P * {1-[1/(1+r)^n]/r}] Where, n = 90 years - 65 years =25years P…

Q: Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded…

A: Formula Future value = PV*(1+i)n Where PV - Investment i.e. $20,000 i - Semi annual interest rate…

Q: Zachary has opened a retirement account that will pay 4% interest each year. He plans to deposit 8%…

A: Interest Rate = 4%   Year N (Time to last deposit) Salary Sample Working Deposit Sample Working…

Q: Levi plans to retire at age 66, and estimates that $61,200 a year in retirement for 20 years will be…

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

Q: Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this…

A: In  the given question we require to compute the amount mary will have in account at the end of…

Q: ne began to save for his retirement at age 30, and for 13 years he put $ 250 per month into an…

A: Future value of annuity is the future value of all the stream of cash flow. Future value of annuity…

Q: Frank buys a house at age 48 for $600,000 by making a $170,000 down payment and securing a 30-year…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: rdan, age 46, currently makes $143,000. She expects that inflation will average 2.75 percent for her…

A: = Current Income - (Tax Rate × Current Income) - (Saving Rate × Current Income) - payment made for…

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 =…

Q: Sam is planning to retire in the next few years and wondering how much his annual CPP would be if he…

A: There are various factors on which the CPP retirement pensions depends such as: 1) Age in which the…

Q: At the time of her grandson's birth, a grandmother deposits $4000 in an account that pays 4.5%…

A: The value of an account is defined as the total worth of the account for holdings. Cash value is…

Q: Amina needs$________ in her account when she retires. How much total money will Amina pull out of…

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

Q: Tameshia deposits $5500 in her retirement account every year. If her account pays an average of 6%…

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

Q: Andrea, a self-employed individual, wishes to accumulate a retirement fund of $550,000. How much…

A: Computation of interest:

Q: Karen has been depositing $150 at the end of each month in a tax-free retirement account since she…

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

Q: Debbie invests $5,500 in her IRA account each year for 40 years.  If she earns 7% return annually on…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Eugene began to save for his retirement at age 35, and for 15 years he put $ 325 per month into an…

A: $

Q: To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 4.8%…

A: Rate of Interest = 4.8% Compounded Monthly Time Period(t) = 18 years  n = 12 Future Value = $97,000…

Q: A woman makes $200 contributions at the end of each month to a retirement account for a period of 10…

A: Value at end of contribution period is calculated by future value of annuity formula in excel i.e.…

Q: Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual…

A: Computation:

Q: f Sarah’s retirement plan earns 5.75% compounded monthly, what amount will she have when she turns…

A: Future Value: It is the future worth of the investment or cashflows at a future point in time,…

Q: Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns…

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

Q: Leon and Heidi decided to invest $3,000 annually for only the first eight years of their marriage.…

A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: Barb has a retirement account of $1,000,000 that earns 2% compounded monthly. If she wishes to…

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

Q: Spencer plans to work for 45 years. He also plans to spend $250,000 per year during his 40 years of…

A: Retirement planning entails making preparations now for your future life so that you can continue to…

Q: Allison is 31years old and plans to retire at age 65 with $920,000 in her retirement account. What…

A: The amount required to deposit today can be calculated with the help of present value function.