onsider that you are 45 years old and have just changed to a new job. You have $145,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new employer. You will also contribute $6,700 each year into your new employer’s plan. If the rolled-over money and the new contributions both earn a return of 9 percent, how much should you expect to have when you retire in 20 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) FUTURE VALUE?

onsider that you are 45 years old and have just changed to a new job. You have $145,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new employer. You will also contribute $6,700 each year into your new employer’s plan. If the rolled-over money and the new contributions both earn a return of 9 percent, how much should you expect to have when you retire in 20 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) FUTURE VALUE?

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 6FPE

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Funding a retirement goal. Austin Miller wishes to have 800,000 in a retirement fund 20 years from now. He can create the retirement fund by making a single lump-sum deposit today. a. If upon retirement in 20 years, Austin plans to invest 800,000 in a fund that earns 4 percent, what is the maximum annual withdrawal he can make over the following 15 years? b. How much would Austin need to have on deposit at retirement in order to withdraw 35,000 annually over the 15 years if the retirement fund earns 4 percent? c. To achieve his annual withdrawal goal of 35,000 calculated in part b, how much more than the amount calculated in part a must Austin deposit today in an investment earning 4 percent annual interest?
Q5 Consider that you are 35 years old and have just changed to a new job. You have $86,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new employer. You will also contribute $4,200 each year into your new employer’s plan.If the rolled-over money and the new contributions both earn a 7 percent return, how much should you expect to have when you retire in 30 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) FUTURE VALUE?
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