Michelle is attending college and has a​ part-time job. Once she finishes​ college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a​ "nest egg" to start her off. Michelle works out her budget and decides she can afford to set aside ​$80 per month for savings. Her bank will pay her 4% per​ year, compounded​ monthly, on her savings account. What will be​ Michelle's balance in five​ years?

Q: Dina Naples is saving money at the IBM Credit Union for a down payment on a house. How much does she…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Honey wants to go to Siargao, for four days at the age of 25. She hopes to save $10,000 by the time…

A: The present value method refers to the determination of the present worth of an amount with a…

Q: Rick has an income of $100,000 that he is willing to spend over a year. If his bank account is…

A: Cash Management refers to make number and amount of withdrawals efficiently to make opportunity cost…

Q: Elijah and Laila are saving for their daughter Tanisha's college education. Tanisha just turned 10…

A: Accumulated value at t=0 is $17,000 Interest rate is 7%  Additional investment in year (t=1,2,3,4)…

Q: belinda and harry have discussed starting a family but decided to wait for perhaps five more years…

A: Inflation Rate: It is the percentage increase or decrease in prices during a period. The percentage…

Q: If she invests $1900 into a savings account for those 5 years at 6.5% interest, compounding…

A: Given that: Future value = $2500 Time period = 5 years

Q: Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is…

A: Time Value of Money states that the amount of money present with us now is way more than the sum of…

Q: Krystal plans to save $500 at the end of Year 1, $600 at the end of Year 2, and $700 at the end of…

A: Money she will save by end of year 3 is future value of all yearly payments

Q: Bianca decides to stop going to the coffee shops in the morning and figures she saves about $30 per…

A: The amount of money after 5 years can be calculated with the help of future value of annuity…

Q: John and his wife, Joanne, both work and have a combined gross income of $115000 per year. They…

A: Here,

Q: Your parents start saving for your sister's college education. She will begin college at age 18 and…

A: Present value and future value is computed by discounting or compounding an amount. Future value is…

Q: Alexis and Will are purchasing a home. They wish to save money for 10 years and purchase a house…

A: formula to find future value of annuity: fva=A×1+rmm×n-1rmwhere,A= annuityr = rate of interestm =…

Q: Using the time value of money Helen wants to take the next four years off work to travel around the…

A: The present value of the amount withdrawn in future years if investment made at 10% interest shall…

Q: Joseph and Makena are saving for their daughter Dalia's college education. Dalia just turned 10 (at…

A: Interest Rate is 10% Growth Rate in College Expense is 3.5% Current College Expense is $15,500…

Q: Phoebe Jones is now employed as the managing editor of a well-known business journal. Although she…

A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: fund and needs to decide what to do with it.

A: Purchase a 10 year bond-Bonds will provide regular interest, but is a risky investment. There is a…

Q: Ali has decided to take a trip back home to California in 1 ½ years, but she needs to save up some…

A: Using excel FV function

Q: Fatema wants to invest an amount of OMR.  2000 every year to go on vacations with her husband at the…

A: Annual Amount invested =OMR 2000 Years (n) = 5 Interest Rate(r1) = 7.85% = 0.0785 Interest rate(r2)…

Q: Aina just got her driver license, and she wants to buy a new car cost for RM70,000. She has RM3,000…

A: Future value needed (F) = RM 70000 Present value (P) = RM 3000 Union bank interest rate = 10.8%…

Q: Skye plans to attend a 4-year public university. She will receive $4,300 in scholarships and grants…

A: Savings refers to the disposable income which is left by incurring all expenses. In order to…

Q: Kayla wants $7,000 saved in 4 years to make a down payment on a house. How much money should she…

A: Amount that needs to be invested now to meet her goal = 5795.20

Q: Rhonda has saved $1,200,000 in an account. Her goal is to have 1,500,000 saved up to use as down…

A: given, pv = $1200,000 n=5 r=2.5%

Q: How much do you think her parents must deposit now in order for her to have a total of RM30,000 at…

A: Present Value: It is the present worth of the annuity payments or savings made in the future.…

Q: Amrit and Destiny are saving for their daughter Gabrielle's college education. Gabrielle just turned…

A: We know the college expense today, which is $16500 per year. We need to first find the college…

Q: Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is…

A: The annual payment to be made in the future is the amount of amount that is required to be saved…

Q: Hannah wants to have $ 1500 to help pay for a new deck in 10 years. If she wants to put her money…

A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Q: Mrs. Jillian has just turned 16 years old and has her mind set on buying a new car by the time she…

A: Time value of money identifies the depreciation in value of money over the period of time by…

Q: Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is…

A: Here, College Tuition Fees and Expenses is $16,000 Inflation Rate is 4% College Tuition fees and…

Q: Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is…

A: Here, College Tuition Fees and Expenses is $16,000 Inflation Rate is 4% College Tuition fees and…

Q: Honey wants to go to Siargao at the age of 25 and she is 20 years old today. She wants to know how…

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

Q: Parents wanted to save enough money to send their daughter to college. The parents were unable to…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is…

A: Here, College Tuition Fees and Expenses is $16,000 Inflation Rate is 4% College Tuition fees and…

Q: Aina just got her driver license, and she wants to buy a new car cost for RM70,000. She has RM3,000…

A: Cost of Car = Required Future Value = 70,000 Investment = 3,000 Union Bank Interest Rate = 10.8%/12…

Q: Philip works at a nursing home as an aide and earns $27,000 a year. IF he went to school to get a…

A: An education loan seems to be an amount of money obtained to cover the costs of graduate school or…

Q: A mother is thinking about funding her daughter’s medical education in 6 years when she is expected…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: Theadre Adams wants to open an accounting firm once she gets out of college in 4 years.  She has…

A: Future value of annuity is the value of stream of recurring cashflow compounded to future date at…

Q: Susan Jones has a job as a pharmacist earning $45,000 per year, and she is deciding whether to take…

A: Part 1:As per the given conditions, the expenses are expected to grow at 3%. The fourth year revenue…

Q: nifer is planning a trip to Alaska in 5 years. She has calculated that she will need $15,000 to…

A: In this we need to calculate the present value of future needs.

Q: Ann was given a gift of $10,000 by her grandparents. She has a choice between 2 accounts to invest…

A: Option 1- Present value of gift (PV)= $10,000 Interest rate (r)= 2.35% compounded monthly= 0.001958…

Q: Charlotte has just finished her MBA and started a career in banking investment, she wanted to have a…

A: Loan: It is the amount that is given to the borrower by the lender. In return, the borrower pays the…

Q: If Cheryl has four years until she gets her driver’s license, will she have enough to buy a used car…

A: Future value: It is the value of the sum of money in the future, compounded at a specific interest…

Q: A man needs to set up a 529 colleges saving account for his granddaughter. How much will he need to…

A: using the PMT function in excel

Q: Susan Jones has a job as a pharmacist earning $45,000 per year, and she is deciding whether to take…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Your great-aunt wants to help with your college graduation party. She has just placed $5,000 dollars…

A: Future value is the expected value of the current amount at a future date at a given rate of return.…

Q: Suzanne starts her college education four years from now. For her college education, she is going to…

A: Quarterly Payment = $1,100 Time Period = 4 Years Interest Rate = 13%

Q: Last year Jane's grandmother offered to put enough money into a savings account to generate $5000 in…

A: Interest Payment = 5000 Time Period = 1 year Rate of return = 6%

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.