Which will you choose

Q: Assume that the Canada Pension Plan promises you $60,000 per year starting when you retire 45 years…

A: The value of the Pension plan can be calculated using the formula of the present value of annuity .…

Q: Assume that your mother has offered you a choice of one of the three following Alternatives: $75,000…

A: Using the present value function in excel

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: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…

A: Future value is the expected value of current sum in a future date at a given rate of return. Given:…

Q: a) How much is in your account on retirement? b) Suppose you set up your account as a perpetuity on…

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

Q: Assume that you contribute $330 per month to a retirement plan for 15 years. Then you are able to…

A: This is an annuity where we make equal contributions each month. To get the value of the investment…

Q: Your client is evaluating between the following two retirement options: Option 1: Pays a lump sum of…

A: Solution (A) You need to compare the present value of the annuity in option 2 with the lump sum…

Q: You will make equal deposits into your retirement account each year for 10 years starting now (i.e.,…

A:

Q: You are offered the opportunity to put some money away for retirement. You will receive 6 annual…

A: Computation:

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: To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: You intend to make the annual maximum contribution of $6,000 to your Roth IRA (individual retirement…

A: Maximum Contribution per Year(PMT) is $6000 Time Period(NPER) is 30 years Rate is 10 years   To…

Q: Your employer automatically puts 10 percent of your salary into a 401(k) retirement account each…

A: If the amount of contribution incurred by a person increases, then it is known as growing annuity.…

Q: Your employer offers a 401(k) plan with a 17% match, and you set a goal of retiring in 35 years with…

A: Given: Value today = $1.1 million or $1100000 Inflation rate = 1.5% Annual rate = 1.2% Number of…

Q: You have just made your first $1,500 contribution to your retirement account. Assume you earn a…

A: FV = PV(1 + r)t FV= Future Vale PV = Present Value r= rate of interest t = time in years

Q: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…

A: Value of retirement fund is future value of yearly savings

Q: If the professor’s remaining life expectancy is 20 years, what is the monthly interest rate on this…

A: Present Value of Annuity: It is the present worth of future annuity payments. It is arrived at by…

Q: Your uncle Barry is about to retire, and he wants to buy an annuity that will provide him with…

A: ANNUITY =77000 Period =25 years  interest rate =8.5%

Q: Beginning a year from now, Bernardo O’Reilly will receive $20,000 a year from his pension fund.…

A: Present value is the current worth of future payments from the specific investment.…

Q: . You are able to choose between two retirement policies described below. Policy A: Starting 35…

A: Policy A -  Present value of annuity = P * [1-1/(1+r)^n]/r where, r = rate of interest 6% n = no. of…

Q: what is the value of your retirement plan after the 40 years?

A: A retirement plan is the planning for retirement. It is an investment plan, whereby the investor…

Q: You want to begin saving for your retirement. You plan to contribute $12,000 to the account at the…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

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

A: Using excel PMT function

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,000 of…

A: RATE 15.25% YEARS 24 PMT (MONTHLY PAYMENT) 6000 FUTURE VALUE $0 FIRST PAYMENT IMMEDIATE…

Q: You purchase an annuity that will pay you $100 every three months for five years. The first $100…

A: FORMULA FOR PRESENT VALUE OF ANNUITY (FVA): PVA=A×1-1+rmm×nrm×1+rm where, A=annuity r=rate…

Q: Assume that Social Security promises you $40,000 per year starting when you retire 45 years from…

A: Social security is the amount which is given by certain employers in addition to salary that gets…

Q: You are offered the choice of two annuities. A:  Receive $100 every year for the next ten years.…

A: Annuity A makes annual payment of $100 Annuity B makes $204 payments every two year.Thus at…

Q: A. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the…

A: The present value is today's value of future cash flows. It represents the discounted value of cash…

Q: You are offered a $3,360,000 retirement package to be given in $120,000 payments at the end of each…

A: Annuity refers to series of equalized payments that are either made start or end of definite period.…

Q: you are trying to determine how much you should save fc you can spend now. For retirement, you will…

A: You need to calculate present value of all objectives on given date.

Q: $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have a choice of…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: o supplement your planned retirement in exactly 30 years, you estimate that you need to accumulate…

A: a) The question gives the following information:

Q: You plan to make a series of deposits in an individual retirement account. You will deposit $1,000…

A: According to the time value of money concept, money available today has interest earnings ability.…

Q: loyer offers a 401(k) plan with a 15% match, and you set a goal of retiring in 35 years with an…

A: The amount deposited grow with interest being accumulated over the period of time due to compounding…

Q: Assume that you are 30 years old today (t=0), and that you plan to retire at age of 65 (t=35). Your…

A: An annuity is a series of payments with a fixed number of instalments of the same quantity and made…

Q: Assume that you contribute $200 per month to a retirement plan for 20 years. Then you are able to…

A: Computation:

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

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

Q: You will retire in 26 years and can afford to put away 11 % of your salary each year. You make…

A:

Q: Assume that Social Security promises you $30,000 per year starting when you retire 45 years from…

A: Time value of money is a concept that states that the value of the amount of money today is more…

Q: An insurance company offers you an end-of-year annuity of $48,000 per year for the next 20 years.…

A: With the Ordinary annuity or end of year annuity, payments begin at the end of a period.

Q: You are offered a $2,800,000 retirement package to be given in $100,000 payments at the end of each…

A: Excel Spreadsheet:

Q: You are thinking of retiring. Your retirement plan will pay you either $200,000 immediately on…

A: The time value of money concept signifies that the money is having more worth now as compared to its…

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: You want to begin saving for your retirement. You plan to contribute $12,000 to the account at the…

A: Since you have asked multiple questions, we will solve the first question for you. Please resubmit…

Q: Suppose you are planning for retirement. At thebeginning of this year and each of the next 39…

A: Retirement fund is used for saving some portion of income by people for their retirement. It is also…