Mr. Arman has decided to start saving for his retirement. Beginning on his twenty-sixth birthday, Arman plans to deposit Tk. 12,000 each birthday into a saving account earning 10% compound annual interest rate. He will continue this saving program for a total of 10 years and then stop payments. But his savings will continue to compound at 12% for 30 more years, until he retires at the age of 65. Mr. Jamal also plans to deposit Tk. 12,000 a year in a saving account on each birthday at 12%, and will do so for a total of 35 years. However, Jamal will not begin his contributions until his thirty-first birthday. How much will Mr. Arman’s and Mr. Jamal’s savings programs be worth at the retirement age of 65? Who will be better off financially at retirement, and by how much? (Assume annual compounding for each case).

Leila is saving for her retirement by making deposits of $22,000 on each birthday into a savings account starting on her 51st birthday and ending on her 64th birthday (inclusive). Given an effective annual rate of interest of 3.3%, how much will she accumulate by her 65th birthday?

20.

Your great-uncle Claude is 82 years old. Over the years, he has accumulated savings of $180,000. He estimates that he will live another 18 years at the most and wants to spend his savings by then. (If he lives longer than that, he figures you will be happy to take care of him.) Uncle Claude places his $180,000 into an account earning 9 percent annually and sets it up in such a way that he will be making 18 equal annual withdrawals—the first one occurring one year from now—such that his account balance will be zero at the end of 18 years. How much will he be able to withdraw each year?

Mr. Mangano is considering taking early retirement, having saved $400,000. Mr. Mangano wishes to determine how many years the saving will last if he withdraws $60,000 per year at the end of each year. Mr.Mangano's savings can earn 10 percent per year.   11.67 years.     11.35 years     10.90 years     11.53 years.     12.01 years

Marc has nothing saved for retirement. He wants to receive $46,000.00 per year for 5 years during retirement. The first of these payments will be received in 7 years. Marc can earn a return of 9.38 percent per year. How much does Marc need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first annual savings contribution in 1 year and all savings contributions are equal? O $21,324.88 (plus or minus 10 dollars) O $25,513.05 (plus or minus 10 dollars) O $23,325.15 (plus or minus 10 dollars) O $20,819.31 (plus or minus 10 dollars) O none of the answers are within 10 dollars of the correct answer

To ensure his retirement income, a 40-year old man plans to purchase annuity when he turns 65. The annuity will pay $7,500 at the end of each month for 20 years, and the value is calculated at 5% interest, compounding monthly. To pay for this annuity, he starts making annual level deposits in a mutual fund, which earns 8% interest each year. He makes the first one right away, and makes deposits at the beginning of each year for 25 years. How much does he need to deposit each year in order to save enough to buy his annuity?

Mr. King is retired and wishes to set up a 10-year annuity with quarterly payments of $8000 for the care of his disabled son. Find the amount he should deposit today at 6% interest compounded quarterly.

When Joe and Sarah graduate from college, each expects to work a total of 45 years. Joe begins saving for retirement immediately. He plans to deposit $600 at the end of each quarter into an account paying 8.1% interest, compounded quarterly, for 10 years. He will then leave his balance in the account, earning the same interest rate, but make no further deposits for 35 years. Sarah plans to save nothing during the first 10 years and then begin depositing $600 at the end of each quarter in an account paying 8.1% interest, compounded quarterly for 35 years. Complete parts (a) through (e) below. a. Without doing any calculations, predict which one will have the most in his or her retirement account after 45 years. Then test your prediction by answering the following questions. Choose the correct answer below. O A. Joe will have more in his account after 45 years. Sarah contributed more money overall, but Joe was earning 8.1% interest per quarter for 35 years. Sarah will have more in her…