Upon retirement, your goal is to spend 6 years traveling around the world. To travel in the style to which you are accustomed will require $225,000 per year at the beginning of each year. If you plan to retire in 24 years, what are the equal, annual, end-of-year payments necessary to achieve this goal? The funds in the retirement account will compound at 9 percent annually. Use Table III and Table IV or a financial calculator to answer the question. Round your answer to the nearest dollar.

Q: An engineer who is about to retire has accumulated $50 000 in a savings account that pays 6% per…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the…

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

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Here, Annual payment = $50,000 Interest rate = 6% Number of periods = 10 years To Find: PV of…

Q: Your financial advisor has encouraged you to save $500 each month for retirement. You expect to…

A: Money at the end of 40 Years  = Monthly deposit × 12 months × Years of Deposit = $500 × 12 × 40 =…

Q: If you want to retire with $2,000,000 in 45 years and can earn a rate of 10% with monthly…

A: The retirement amount to be required (FV) is $2,000,000. The maturity period is (NPER) 45 years. The…

Q: You have $11,489.64 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Given: Present value (PV)= $ 11489.64 PMT = $5000 Future value (FV) = $200, 000. Rate = 11% = 0.11

Q: Paul and Donna Kelsch are planning a Mediterranean cruise in 5 years and will need $5,500 for the…

A: periodic payment of sinking fund formula: FV=Periodic payment×1+rmm×n-1rmperiodic…

Q: An instructor plans to retire in exactly one year and want an account that will pay him P25,000 a…

A: The instructor is planning to retire in one year and wants to get P25000 each year for 15 years. The…

Q: You plan to invest $1,200 at the end of year 1, $2,000 at the end of year 2, and $3,700 at the end…

A: Given data; Amount deposited at the end of year 1 = $1200 Amount deposited at the end of year 2 = $…

Q: You are offered the opportunity to put some money away for retirement. You will receive 10 annual…

A: Annual payment “PMT” = 5000 Number of payments “n” = 10 Interest rate = 12% compounded  monthly…

Q: You and your wife are making plans for retirement. you Olán on living 25 years after you retire and…

A: Annual amount required = 100000 years to live =25 years Number of years to withdraw(n) = 25-1 =  24…

Q: The Pirerras are planning to go to Europe 2 years from now and have agreed to set aside $190/month…

A: Concept: The future value is defined as the current asset that is based on the future date depending…

Q: After retirement, you expect to live for 25 years. You would like to have a $95,000 income each…

A: Here,

Q: You deposit $13,000 annually into a life insurance fund for the next 10 years, after which time you…

A: The future value is the value of the amount in future that has to be paid or received at future.

Q: If you make annual payments into a retirement plan during your working life, how much will you need…

A: Find the present value of the annuity for retirement funds at t=25. (PV Function) The above amount…

Q: An engineer who is saving for her retirement plans to deposit $500 every semiannually, starting…

A: Semi Annual Deposit = 500 End of period deposits Nominal Rate = 12℅ Quarterly Compounding N = 25…

Q: A man is planning to retire in 20 years. He can deposit money for his retirement at 8% compounded…

A:

Q: You are planning to retire in forty years. You will be spending $30,000 per year, starting at the…

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

Q: When you retire 40 years from now you plan to make 10 withdrawals from your savings account. You…

A: Annuity refers to series of equalized payments that are received or paid either at start or end of…

Q: As part of your financial planning and to supplement your retirement, you decided to save $3000 at…

A: Future value is the expected value of the current amount at a future date at a given specific rate…

Q: Suppose you wish to retire 30 years from today .You have determined that you would need $75,000…

A: The question is to find the present value of expected cash flow made at regular intervals. The…

Q: You plan to retire in exactly 20 years' time and expect to live for 30 years after you retire. In…

A: Annuity is the concept of accepting or depositing equal amount at equal time interval over a period…

Q: company offers you employment for the next 30 years until retirement but will not pay you a pension…

A: In this we have to calculate the monthly deposit upto retirements and than how much can be withdrawn…

Q: You would like to have $1,000,000 when you retire in 40 years. How much should you invest each…

A: Given:

Q: A civil engineer who is about to retire has accumulated 750 000 in a savings account that pays 6%…

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

Q: You are planning to retire in 20 years, and your goal is to accumulate a sum of $1 million in your…

A: In this question we require to compute the money to be invested each year to have $1 million in 20…

Q: You want to accumulate $1,250,000 prior to retirement.  If you can earn 10% per yr. and have the…

A: RATE (10%/12) 0.833% TIME PERIOD (30 years * 12 months) 360 PRESENT VALUE $0 FUTURE VALUE…

Q: In planning for your retirement, you have decided that you would like to be able to withdraw $60,000…

A: When a payment is done repeatedly for a specific period of time it is referred to as Annuity.…

Q: Determine the size of your investment account 23 years from now (when you plan to retire) if you…

A: Future value: It is the value of the current asset, depending on the assumed rate of the growth, at…

Q: You plan to retire in 35 years and would like to have $1,000,000 in investments. How much money…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: You have finished your time at Kelley and need to start thinking about retirement. You plan on…

A: Given: amount required after retirement at every six months = $75,000 Period of service = 30 years…

Q: You have $34,256.85 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Using NPER function in excel, this can be ascertained and the following inputs are used for…

Q: Today is your birthday and you decide to start saving for your retirement. You will retire on your…

A: Calculate the present value of amount required after retirement at the age of retirement as shown…

Q: Every year, you receive your entire annual salary at the end of the year. This year, your…

A: Inflation rate With nominal rate and real rate, the inflation rate is calculated as show below.…

Q: Your RRSP will pay an average of 7% per year After you retire when you are 68 years old you plan to…

A: EXCEL FORMULA:

Q: Suppose you are 30 years old and would like to retire at age 60. Moreover, you would like to have a…

A: Present Value of annuity = P* [{(1+r)^n-1}/r] Where, Present Value of annuity = 350000 P = Annuity…

Q: You are planning to save for your retirement during the next 30 years. You want to be able to…

A: EAR = (1+apr/n)^n - 1 EAR = (1+8%/12)^12 - 1 = 8.299951% Now let us find out the present value of…

Q: Suppose you have estimated that you will need $2,500 per month in your retirement to meet your…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: At the moment you don't have any money saved for retirement, but have resolved to start making $425…

A: Given: Monthly payments "PMT" = $425 Effective annual rate = 9.9% Future value "FV" = $2400000

Q: You are offered the opportunity to put some money away for retirement. You will receive 10 annual…

A: Here, Annual Payments Received is $5000 Interest Rate is 12% Monthly Interest Rate is 12% / 12 = 1%…

Q: Suppose you are 35 years old and would like to retire at age 65. Furthermore, you would like to have…

A: Future value is amount that an investment will become after a certain period of time. It will…

Q: Suppose you wish to retire forty years from today. You determine that you need RM50,000 per year…

A: An Annual payment is the equal payment that is paid or received at the end of the year.

Q: When you retire 40 years from now you plan to make 10 annual withdrawals from your savings account…

A: PV is the current worth of cash flows that are expected to happen in the future.