Mr. Senior who is 55 years is employed by a firm that guarantees him a pension $100,000 per year at age 60. What is the present value of his first year's if inflation over the next 5 years is 8%. Assume that inflation is compounded continuously.

Q: Your father paid $10,000 (cf occurs at t=0) for an investment that promises to pay $850 at the end…

A: Expected rate of return can be described as the total profit or loss on a particular investment over…

Q: Matthew, age 37, currently makes $90,000. His wage replacement ratio is determined to be 85 percent.…

A: The amount of capital needed to be accumulated today for the retirement age of 70 will be calculated…

Q: ade a 20-year retirement plan and according to his plan, he aimed to withdraw 6000 TL at the end of…

A: Annuity grow by some constant amount of gradient and due to this growth amount grow much amount.

Q: A worker age 40 wishes to accumulate a fund for retirement by depositing $3000 at the beginning of…

A: Series of payments, made at the beginning of the periods is known as annuity due. Future value of an…

Q: Suppose your mother has worked for 40 years and has accumulated  $1,000,000. She wishes to begin…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: Ms. Lun is earning P20,000 per month.  She plans to invest in an insurance company an amount…

A: Monthly Earning of Ms. Lun P20,000 Annual Earning of Ms. Lun (P20000 * 12) P2,40,000 Amount…

Q: A person joins a pension plan at age 35. How much will she have to pay into the pension fund each…

A: The question is based on the concept of Annuity in Financial Management.

Q: A 55-year-old executive will retire at age 65 and expects to live to age 75. Assuming a 10 percent…

A: Age of retirement = 65 Age of death = 75 Number of years to avail annual amount of P10,000 = 10…

Q: A person would like to receive Rs.30000 monthly as pension after his retirement (60 years). To…

A: The present value of the pension amount equated the future value of all the deposits made in the…

Q: 2. Kratos is now 55 years old now and he is willing to invest a lump sum amount today at 4%…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

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

A: The Future Value of the annuity refers to the sum value of all the payments which is occurred…

Q: To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine…

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

Q: What is the total amount at the end of the 10th year of the above series?

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

Q: On his 40th birthday, Mr. Ramos decided to buy a pension plan for himself. This plan will allow him…

A: Quaterly payout(pension) is 10,000 Interest rate is 8% comppounded quaterly Time period of Pension…

Q: Ira Schwab opens up a Schwab IRA and places $2,000 in his retirementaccount at the beginning of each…

A: IS opens a retirement account and pays an annuity of $2,000 at the beginning of 10 consecutive…

Q: Jay has just retired and will receive a pension of 3,857 per month for 20 years. After which he…

A: The Present Value   is the current value of a future amount i.e.,   it is the amount to be invested/…

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: What is the accumulated future value of his position? ( ?=R/K (e^kt-1) where R is the income stream,…

A: R(t) represents the rate per year of a continuous income stream and is a constant k is the interest,…

Q: On his 40th birthday, Mr. Ramos decided to buy a pension plan for himself. This plan will allow him…

A: Payment = P10,000 Rate = 8%  Compounding = 4 times as payment is due in 3 months  The annuity is…

Q: r. Lopez is planning for her retired life. She has 10 more years of service. He would like to…

A: Here we will use the concept of time value of money. The concept of time value of money states that…

Q: Ed who was then 26 years old planned to retire at the age of 56 years and so he purchased an…

A: Let the annual amount of annuity = A Annuity payments (n) = 30 Annual income from 56th birthday = P…

Q: Luis has $150,000 in his retirement account at his present company. Because he is assuming a…

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

Q: A contractor is calculating the present worth of the salaries of his five employees over the next…

A: Present worth refers to the amount present today that is more valuable than the amount will…

Q: Your retired client has accumulated investment and retirement assets totaling $5,981,000. Assume the…

A: In order to calculate the return on investment with given inflation rate, we are firstly required to…

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: A man turns 35 today and wishes to provide supplemental retirement income of 3000 at the  beginning…

A: Future Value: Future value is the value of a current asset at some time in the future based on an…

Q: what is her payment?

A: Information Provided: Term = 20 years Present value = $1,000,000 Interest rate = 5%   Ordinary…

Q: Mr Santos wants to get a lump sum of money when he retires at the end of 30 years. He then deposits…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: When Austin retires in 18 years, he wants to receive $250.00 payments at the start of every month…

A: given, till retirement: n = 18 years m = 2 r= 2.6% LET SEMI ANNUAL PAYMENT = A after retirement n =…

Q: Mr Hammond is 45 years of age and has a life expectancy of 10 more years. He wishes to invest…

A: Income is referred to as the funds, which is received by an individual or business in an exchange…

Q: A new employee puts 4% of his salary of $65,000 into a retirement account, and his employer matches…

A: salary = $65,000 employee contribution=4% of salary=$65,000x 0.04=$2600 employer contribution=3% of…

Q: nd thereafter he wishe

A: The concept of time value of money states that worth of money changes with passage of time. This is…

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: .Interest rate per month,%? 2.Amount paid at the end of 3 years. 3.Amount to be paid at the end of 5…

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

Q: Your father's employer was just acquired, and he was given a severance payment of $375,000, which he…

A: A concept that helps to measure the present or future value of the cash inflow and outflow is term…

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: How much will be in the account when the individual retires at age 65 if the savings program starts…

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

Q: A is planning for her retired life. She has 10 more years of service. He would like to deposit 20%…

A: Present value of Annuity Annuity is a series of equal payment at equal interval over a specified…

Q: Wasim invests $220,000 in an annuity that earns 8.50% interest compounded quarterly. It makes…

A: An annuity is referred to lump-sum payment made by you in return for regular disbursements,…

Q: EZ Leifer plans to retire at the age of 65 and believes he will live to be90. EZ wants to receive an…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money 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: Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual…

A: Computation:

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: A person joins a pension plan at age 40 (40th birthday). How much will s/he have to pay into the…

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

Q: Mr. De Castro wishes to have P1,400,000.00 when he retires 15 years from now. If he can expect to…

A: Note: Since the same question is typed twice, so we will solve it once for you. The Future value of…

Q: A couple received a $131,000 inheritance the year they turned 50 and invested it in a fund that…

A: Information Provided: Inheritance amount = $131,000 Interest rate = 6.4% compounded semi-annually…

Q: John Jones has just retired after many years with the telephone company. His pension funds have a…

A: Annuity refers to series of equalized payments that are made at end or begin of period for constant…