Your parents are planning to save for their retirement. A retirement plan is a financial arrangement made by an individual, employees/employers, insurance companies, and other institutions to replace employment income upon retirement. They target to accumulate P5000,000 in 10 years. To do this, they want to set aside a portion of their salaries and contribute monthly for their retirement funds. How much should they contribute per month if they have a chance to invest in an annuity that earns 5% compounded quarterly.

Q: Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: Quarterly payment (Q) = 15000 pesos n = 25 years = 100 quarters Interest rate = 10.5%

Q: New parents wish to save for their newborn's education and wish to have $46,000 at the end of 17…

A: Computation of yearly payment:Hence, the yearly payment is -$1,682.02.

Q: Calculate the return that Lin Shan is earning on her annuity.

A: Given, Investment - PV = 1000000 Payment - PMT = 60000/2 = 30000 years - N = 15 Period - m = 15*12 =…

Q: Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your…

A: First contribution amount = Current Salary * Contribution % = 41000 * 8% = $3280

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: Annuity is type of financial instrument (insurance contract) in which you pay certain amount…

Q: Using the Time Value of Money for Retirement Planning. Carla Lopez deposits $3,400 a year into her…

A: Given: Annual deposit = $3,400 Interest rate = 9% Number of years = 40 Value of the retirement…

Q: New parents wish to save for their newborn's education and wish to have $40,000 should the parents…

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

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

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: (Refer to this word problem In order to plan for their retirement, a married couple decides to…

A: Quarterly payment (Q) = P 50000 r = 8% per annum = 2% quarterly = 0.02 n = 10 years = 40 quarters

Q: Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

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

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: a) Answer: Annuity due. Annuities are regular periodic payments made over a specified period. When…

Q: You want to be able to withdraw $50,000 from your account each year for 20 years after you retire.…

A: Here we will first have to find the present value of annual withdrawals of $50,000 for 20 years.

Q: If they make annual payments into a savings plan, how much will they need to save each year ?

A: Information Provided: Retirement time = 50 years Amount to be spend = $38,000 Interest rate = 9%

Q: Experts say that the baby boom generation (born 1946-1960) cannot count on a company pension or…

A: Yearly Deposit = $3,000 Interest Rate = 12% compounded semiannually Time Period = 15 Years

Q: A person wants to make an amount of $ 5,000 to accumulate over a period of 15 years so that he can…

A: Annual, or yearly, billing is a popular choice for many businesses since it delivers a whole year of…

Q: Peter has opened a retirement investment account and plan to contribute $6,000 at the end of each…

A: Expected return is calculated by excel function RATE. For RATE function, future value FV is the…

Q: Maria, a 25-year-old teacher, wants to start saving for her retirement. Maria wants a comfortable…

A: GIVEN, Age of Maria = 25  retirement age = 65 therefore number of years of savings = 65- 25 = 40…

Q: Janet's parents want her to go to the same college that they did. They decided to pay a lump sum…

A: The question is based on the concept of Present value

Q: Ms. Ieda Silva plans to retire in 28 years and expects to live for 25 years after retirement. She is…

A: we can use discounting techniques to value the monthly deposits.

Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10…

A: The future value formula can be used to derive the future value of a present sum or a stream of…

Q: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18…

A: Given  P=$37,000 r= 7.8% n=1 t=18 years

Q: A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which…

A: Time value of money is the concept widely followed by the management and many companies to determine…

Q: A recent college graduate hopes to have 200,000 saved in their retirement account 25 years from now…

A: Here, Future value (FV) = 200,000 Number of years = 25 years Contribution per month = 150 Interest…

Q: You estimate you need to supplement your social security payments with monthly withdrawals of…

A: Given: Monthly withdrawal = $3,420 Interest rate = 6.9% So, monthly interest rate = 0.069/12 = 0.58%…

Q: You estimate you need to supplement your social security payments with monthly withdrawals of…

A: The question is based on the concept present value of annuity payment Formula as, Pv=pmt*1-(1+r)-nr

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: You’ve landed your first job after graduation. Although retirement may seem like a long way off, you…

A: contribution =$7000 per year  interest rate =6% Period =35 Future value FACTOR =(1+r)n-1/r…

Q: Your best friend Samis in discussion with you about saving for his retirement.You areto advise him…

A: Dear Student, in this question, first, we have to calculate the present value of withdrawal at t20…

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: Future value required (FV) = $ 200,000 Interest rate = 5% Monthly interest rate (r) = 5%/12 =…

Q: A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a…

A: Here, To Find: Future value of annual savings (FV) =? Annual withdrawals made for 20 years after…

Q: A young engineer wants to provide his newly born daughter a lump sum of P 2.0M when she graduates…

A: Future value required (FV) = P 2,000,000 Period = 21 Years Number of monthly payments (N) = 21*12 =…

Q: Suppose a newlywed couple is planning to buy a home two years from now. To save the down payment…

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

Q: How much should you save at the end of each year from year 36 through 65 such that you have the…

A: Caclulate the present value of future withdrawals at t=66. This amount becomes the future value for…

Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10…

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

Q: A self-employed person deposits $4,000 annually in a retirement account (called a Keogh or H.R. 10…

A: 1). Number of periods = 65 - 50 Number of periods = 15 Future value = Annuity * [(1 + rate)^periods…

Q: Nicola Martin also just started working with the NCB as a sales representative and is just trying to…

A: As withdrawals and deposits are in annual terms we need to calculate effective annual rate

Q: Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year…

A: in this we have to calculate amount of retirement needed and calculate the present value of that.

Q: (Refer to this word problem In order to plan for their retirement, a married couple decides to…

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

Q: A woman is planning for retirement in 30 years and decides she can deposit $6,000 each year on…

A: An Annuity Due is a stream of regular periodic payments made at a beginning of period for a…

Q: You want to be able to withdraw $35,000 from your account each year for 25 years after you retire.…

A: Given Information:- in the question, you want to withdrawal $35000 each year from you bank account…

Q: A self-employed person deposits $3,000 annually in a retirement account (called a Keogh or H.R. 10…

A: Amount deposited annually in a retirement account, A = $ 3,000Since this is deposited every year,…

Q: Suppose you are 40 years old and plan to retire in exactly 20 years. 21 years from now you will need…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Having just inherited a large sum of money, you are trying to determine how much you should save for…

A: Facts in the given question: Inheritance of a large sum of money. Interprete how much you should…

Q: Nicola Martin also just started working with the NCB as a sales representative and is just trying to…

A: The calculation is:

Q: A couple will retire in 40 years; they plan to spend about $27,000 a year in retirement, which…

A: values provided according to question, A=$27000R=7%N=20 YEARS TOTAL AMOUNT NEEDED FOR RETIREMENT…

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You want to be able to withdraw $25,000 from your account each year for 25 years after you retire.…

A: Here, Withdrawal Amount is $25,000 Time Period of Withdrawal (Withdrawal Period)  is 25 years Time…

Q: A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now…

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