tes7. Suppose your employer offers a monthly annuity at 7.3% annual interest.a. If you can afford to put $800 per month into your annuity, and you wish to retire12you retire?b. Suppose instead that you wish to retire in 23 years, but now you want to be ableto withdraw $6,000 per month for 30 years after you retire. Supposing that youcan get the 7.3% in perpetuity, how much will you have to accumulate in 23years to meet your retirement goals? How much will you have to put you're yourretirement account each month in order to save the required amount?in 23 years, then how much will your annuity be worth whenaphicallyall the conty

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Asked Dec 7, 2019
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tes
7. Suppose your employer offers a monthly annuity at 7.3% annual interest.
a. If you can afford to put $800 per month into your annuity, and you wish to retire
12
you retire?
b. Suppose instead that you wish to retire in 23 years, but now you want to be able
to withdraw $6,000 per month for 30 years after you retire. Supposing that you
can get the 7.3% in perpetuity, how much will you have to accumulate in 23
years to meet your retirement goals? How much will you have to put you're your
retirement account each month in order to save the required amount?
in 23 years, then how much will your annuity be worth when
aphically
all the con
ty
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tes 7. Suppose your employer offers a monthly annuity at 7.3% annual interest. a. If you can afford to put $800 per month into your annuity, and you wish to retire 12 you retire? b. Suppose instead that you wish to retire in 23 years, but now you want to be able to withdraw $6,000 per month for 30 years after you retire. Supposing that you can get the 7.3% in perpetuity, how much will you have to accumulate in 23 years to meet your retirement goals? How much will you have to put you're your retirement account each month in order to save the required amount? in 23 years, then how much will your annuity be worth when aphically all the con ty

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Expert Answer

Step 1

7a) Future value of annuity formula is used as below:

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A. 161 Particulars Value Formula 162 Monthly Annuity 800.00 163 Annual Interest rate 7.30% 0.6083333333%=B163/12 164 Monthly Interest rate 165 Number of years 166 Number of perods 23 276 =B165*12 167 5,69,818.987014755 |=FV(B164,B166,-B162) 168 Future Value Annuity

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Step 2

Answer: The annuity would be worth $569,818.99

Step 3

b-1

Amount that needs to be accumulated in 23 years to meet the retirement goa...

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Value Formula 172 Particulars 173 Number of years 174 Number of periods 30 360 =B173*12 6,000.00 7.30% 0.006083333 =B176/12 175 Amount to withdraw per month 176 Interest rate annually 177 Monthly interest rate 178 8,75,182.968202302 =PV(B177,B174,-B175) 179 Present Value annuity %24

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