Mary has $255,906 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each year starting a year from now. How soon will the fund be exhausted if Mary withdraws $30,000 each year? Group of answer choices 8.5 years. 8.8 years. 10 years. None is correct. 11 years.
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- Benjamin receives an annual bonus of $1,000 and wants to invest it in an account that earns interest for the next 3 years. Below are the two options that he is considering putting his money into. Which of the following statements is true? NEED ASAP PLS.Show complete solution David won a lottery worth $10,000,000. He has opted for an annuity payment at the end of each year for the next 20 years as a payout. Determine the amount that David will be paid as annuity payment if the ongoing rate of interest in the market is 5%. Determine what is the Lumpsum if David decides to withdraw everything at the end of 20.You invested $100,000 in a project and received $40,000 at n = 1, $40,000 atn = 2, and $30,000 at n = 3 years. You need to terminate the project at the end of year 3. Your interest rate is 10%; what is the project balance at the time of termination?(a) Gain of $10,000(b) Loss of $8,039(c) Loss of $10,700(d) Just break even
- You plan to open a retirement account. Your employer will match 50% of your deposits up to a limit on the match of $2,500 per year. You believe the fund will earn 12% over the next 30 years, and you will make 30 deposits of $5,000, plus 50% employer matching, totaling $7,500 per year. a. How much money will be in the account immediately after the last deposit? b. How much total money will you put into the fund?Calculate the expected present value of an annuity payable half-yearly in arrears for a maximum of 30 years to a life now aged 50. The annuity is $10,000 per annum in the first 10 years and will increase to $15,000 per annum afterwards. There is a guarantee for the first 5 years of payments. The interest rate is 6% per annum and the mortality basis is AM92 ultimate. Give your answer to the nearest cent.Sofia wants to acquire an apartment that within 4 years will have a value of $310,000,000, for this a monthly savings plan has been proposed to have within 4 years 35% of the value of the apartment that constitutes the initial fee. If the bank where you deposit the money recognizes an interest rate of 16% NM for the first two years and 20% NM for the last two years, how much should Sofia save monthly? Select one: a. $1.229.305,54 b. $1.729.305,54 c. $1.529.305,54
- Q19 solutio n neded10. Find the amount due at the end of 15 months whose present value is P2,000 at 5% simple discount. ANSWER: 2,133,33An advertising campaign will cost $ 200 000 for planning and $ 40 000 in each of the next six years. It is expected to increase revenues permanently by $ 40 000 per year. Additional revenues will be gained in the pattern of an arithmetic gradient with $ 20 000 in the first year, declining by $ 5000 per year to zero in the fifth year. What is the IRR of this investment? If the company’s MARR is 12 percent, is this a good investment? answer should be=12.4%
- 32- Which of the following is considered as dis-advantage for payback period: Select one: a. the future is unknown b. it is very easy to calculate c. it ignores the expected service life d. it accounts for the need to recover capital quickly 33- The normal situation of uniform series is: Select one: a. The series begins at the end of period 1 b.Where the present worth is located prior the first of uniform series c. The series which have equal uniform payments d. all the above Please sir answer both I have no more question. Orthwise skip the question) A certain warehouse is worth P1,650,000. The average value of the merchandise in the warehouse is P1,500,000. The annual insurance rate on the warehouse is 1% and the merchandise stored in the warehouse, 0.9%. A proposal for the installation of a fire sprinkler system is being consider. The system will cost P80,000 and will effect a savings of 70% in a both insurance premiums. Monthly maintenance is estimated to be P500 and annual taxes is P4,000 for the sprinkler system. The owners of the warehouse demand that the investment in such equipment be written-off within 10 years. Invested capital can be expected to earn a minimum return of about 17%. Would you advice the installation? (Uses ROR)Which of the following investment options willmaximize your future wealth at the end of 18 years?Assume any funds that remain invested will earn anominal rate of 12% compounded monthly.(a) Deposit $8,000 now.(b) Deposit $120 at the end of each month for thefirst 12 years.(c) Deposit $105 at the end of each month for 18years.(d) Deposit a lump sum in the amount of $35,000 atthe end of year 12.