Mr. Areola is planning to make an additional investment at the end of each year for his retirement in 20 years.  Mr. Areola plans to invest $5,000 each year for the first 5 years, $8,000 each year for the next 5 years, and $ 12,000 each year for the remaining 10 years. If the rate of return of 11 percent can be earned in these investments, how much money will Mr. Areola have at the end of 20 years?

Q: Ms. Cristiana Piccini is valuing an investment that pays her $27,000 per year for the first ten…

A: Calculation of Value of Investment: Excel Spreadsheet:

Q: Roger decides to start an investment account by depositing $5,000 today. In one year he will invest…

A: Initial deposit (Year 0) = $5,000 Year 1 Deposit = $500 Year 2 Deposit = $600 Year 3 Deposit = $700…

Q: You are planning to buy your dream mansion and for that you have decided to make 3 independent…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for a time.…

Q: Steve Madison needs $250,000 in 10 years. How much must he invest at the end of each year, at 5%…

A: Annuity amount = Futur value of annuity amount / {[(1+r)^n-1] /r}

Q: Kershaw wishes to accumulate $2 million by the end of 40 years by making equal annual end-of-year…

A: Amount to be saved(FV) is $2million Time period(NPER) is 40 Years Rate is 10%   To Find: Amount to…

Q: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…

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

Q: Consider Donald and Joe who are both 30- years of age and recently graduated with a degree in…

A: Here, Donald's Investment per month is $1,000 Joe's Investment per month is $2,000 Interest Rate is…

Q: John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to…

A: Present Value: The present value is the value of the sum received at time 0 or the current period.…

Q: Jabari is planning for his retirement in 5 years’ time. He plans to deposit $200,000 immediately…

A: In this question, we have to calculate the future value of given annuity. Future value of annuity is…

Q: Kun is thinking about investing $4,000 at the end of each year for 30 years in a tax-sheltered…

A: Annual investment (P) = $ 4,000 Interest rate (r) = 8.5% Number of annual deposits (n) = 30

Q: Katrina is planning to make an additional investment at the end of each year for his retirement in…

A: Future value of an amount can be calculated by compounding that amount by using the interest rate…

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.…

Q: Bill wants to invest $45,000 for the next 5 years. If the investment is going to generate 8%…

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

Q: A man wishes his son to receive $250,000 ten years from now. What amount should he invest if it will…

A: Given: FV = $250,000   To calculate: Present Value   Let's understand the interest rates:…

Q: An individual's salary is now $50,000 per year and he anticipates retiring in 30 more years. If his…

A: The amount which will be required at the time of retirement is that amount which a person expects to…

Q: A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which…

A: Time value of money is the concept widely followed by the management and many companies to determine…

Q: Michael Jones plans to save $5,928 every year for the next eight years, starting today. At the end…

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

Q: Hannah plans to invest $6,500 at the end of each year for the next eight years. Assuming a 10%…

A: The amount which represents the value of investment after a specified period is known as future…

Q: Colin thinks he can reasonably expect to buy a house in five years. He would like to have…

A: Calculation of investment (P):Answer:The amount of investment that Colin has to invest annually is…

Q: How much will she have at 70? he expects to live for 20 years if she retires at 65 and for 15 years…

A: *Answer:  a. The amount that she will have at the age of 65 is $423,504.48 Workings:

Q: Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per…

A: The amount required for the retirement can be calculated by using the present value of annuity…

Q: Natalie’s RRSP is currently worth $250,000. She plans to contribute for another five years, and then…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: You are planning to buy your dream mansion and for that you have decided to make 3 independent…

A: The question can be solved as follows:

Q: Consider Donald and Joe who are both 30- years of age and recently graduated with a degree in…

A: Amount they will have is future value of monthly savings

Q: John is nearing retirement and is considering an annuity offer from New York Insurance Corp, which…

A: Given Annuity receivable at end of each year = $30,000 Period = 20 years Rate of interest = 5%…

Q: our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each…

A: We have to essentially find the disocunt rate at which this investment has NPV of zero. Thus, we…

Q: When he started work on his twenty-first birthday, D. B. Cooper decided to invest money each month…

A: Given information: Future value is 1,000,000 Present age is 21 Retirement age is 60 Interest rate…

Q: Walt is evaluating an investment that will provide the following cash flows at the end of each of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: James invests $20,000 on his 25th birthday and plans to add $2,000 to his investment each year until…

A: Investment means engaging your funds to generate income in the future. Interest is a return which is…

Q: Suleman plans to fund his retirement plan and targeting to get OMR 50,000 at the end of 9th year,…

A: Computation:

Q: A civil engineer planning for her retirement places 9% of her salary each year into a…

A: Salary = $160,000 Percentage in the retirement plan = 9%  Growth rate = 5%  Time period = 16 years…

Q: Walt is evaluating an investment that will provide the following returns at the end of each of the…

A: Present Value is the current value of a cash flow that can be occurred in future. To find the…

Q: Tom plans to save $2,000 for each of the next ten years, starting tonight when he will write his…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: Marie's current salary as a Systems Engineer is $100,000 per year. She's planning to place 18% of…

A: The future value of an investment is calculated by multiplying the invested amount by 1+r factor for…

Q: Justin is twenty years old and has saved 50,000. He can invest it in a real estate venture that will…

A:

Q: Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $1,000,000 in his retirement…

A: Given: Retire in : 30 years Amount : $1000,000 Interest rate : 12%

Q: Xavier has plans to construct a house 10 years from now. He is planning to save $500 every month for…

A: Compound Interest= Compound Interest is the basically known as calculating interest on interest. Or…

Q: An individual who makes $32,000 per year anticipates retiring in 30 years. If his salary is…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Zachary has purchased an investment that he expects to produce income of $3,000 at the end of the…

A: IRR is the rate at which NPV is zero

Q: Bill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What…

A: Future value table: This table shows the future amount of investment at specific rate and periods.…

Q: Morgan Madison needs $339,200 in 10 years. How much must he invest at the end of each year, at 9%…

A: In the given question we need to calculate how much Morgan madison needs to invest at the end of…

Q: An investor is considering an investment that will pay $2,150 at the end of each year for the next…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Earl E. Bird has decided to start saving for his retirement. Beginning on his twenty-first birthday,…

A: given, Earl: A=$2000 r=7% n = 10 years  then kept the amount idle for 35 years Ivana: A=$2000 r=7%…

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.