ZuoTi.Pro
Question

You plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive S$20,000 at the end of each year for the 30 years you will live after retirement. You know that you will be able to earn 1 1% per year during the 30-year retirement period. How large a fund will you need when you retire in 20 years to provide the 30- year, S20,000 retirement annuity? a. How much will you need today as a single amount to provide the fund in part a ifyou earn only 9% per year during the 20 years preceding retirement? b. calculated

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS NOTHING WAS MENTIONED, EXCEL IS USED. IF YOU NEED TO SOLVE USING FORMULA, WILL DO THAT ALSO. THANK YOU

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Alignment Number Cells Edting LK LM LN LO LP LQ LR LS LT LU LV LW LX 64 65 PMT YEARS RATE 20000 30 11% 67 69 70 71 72 73 74 75 76 AMOUNT OF FUND NEEDED $ 1,73,875.85 EXCEL-PV(11%,30,-20000) RATE 9% 20 SINGLE AMOUNT NEEDED TODAY $ 31,024.82 EXCEL-PV(9%,20,,-173875.85) 78 79 80 81 82 11 1 トーCALCULATOR ( LOAN OPTIONS | pv, fv, annuity 1 CAP STRU VALUE BOX DILUTION DOLLAR COST AVG MORTGAGE EXPO Sheet1Sheet2 Shel 福 130% rences: x261 06-01-2019

0 0
Add a comment
Know the answer?
Add Answer to:
You plan to retire in exactly 20 years. Your goal is to create a fund that...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • practical Problems

    You plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive $20,000 at the end of each year for the 30 years between retirement and death (a psychic told you would die exactly 30 years after you retire). You know that you will be able to earn 11% per year during the 30-year retirement period.  a.          How large a fund will you need when you retire in 20 years to...

  • You deposit $11,000 annually into a life insurance fund for the next 10 years, after which time you plan to retire...

    You deposit $11,000 annually into a life insurance fund for the next 10 years, after which time you plan to retire. a. If the deposits are made at the beginning of the year and earn an interest rate of 7 percent, what will be the amount in the retirement fund at the end of year 10? b. Instead of a lump sum, you wish to receive annuities for the next 20 years (years 11 through 30). What is the constant...

  • 2. Mr. And Mrs. James would like to need $30,000 per year during their retirement periods...

    2. Mr. And Mrs. James would like to need $30,000 per year during their retirement periods to have a comfortable life. They assume that they will retire in 20 years and expect a 15-year retirement period. They will be able to earn 10% per year during the 15 years retirement period. a) How large a fund will they need when they retire in 20 years to provide the 15-year, $30,000 retirement annuity? b) How much will they need today as...

  • You want to retire exactly 40 years from today. Your assumptions for valuation are as follows:...

    You want to retire exactly 40 years from today. Your assumptions for valuation are as follows: -you choose 10% as your average annual return for investments made prior to retirement -you choose 6% for all investments held through retirement -you want your annual income through retirement to be $150,000-inflation is not a consideration -you want your retirement income payments to last for 20 years after which the account balance will be $0.00. a. How much do you need saved at...

  • 1. You and your spouse have found your dream home. The selling price is $220,000; you...

    1. You and your spouse have found your dream home. The selling price is $220,000; you will put $50,000 down and obtain a 30-year fixed-rate mortgage at 12% compounded monthly for the balance a) Assume that monthly payments begin in one month. What will each payment be? b) How much interest will you pay (in dollars) over the lifetime of the loan? (Assume you make each of the required 360 payments on time.) c) Although you will get a 30-year...

  • You wish to retire in 40 years, at which time you want to have accumulated enough...

    You wish to retire in 40 years, at which time you want to have accumulated enough money to receive a monthly annuity of $12,000 for 25 years after retirement. During the period before retirement you can earn 9% compounded annually, while after retirement you can earn 10% on your money. What annual contributions to this retirement fund will allow you to receive the $12,000 monthly annuity?

  • You want to retire exactly 30 years from today with $1,980,000 in your retirement account. If you think you can earn an...

    You want to retire exactly 30 years from today with $1,980,000 in your retirement account. If you think you can earn an interest rate of 10.19 percent compounded monthly, how much must you deposit each month to fund your retirement?

  • 20. Assume that your father is now so years old, that he plans to retire in...

    20. Assume that your father is now so years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retires (that is, until he is 85). If he retired today, he could live comfortably on $50,000 per year. However, because of inflation, his target retirement income must increase by 5% per year until his retirement date (.e. inflation is 5% annually). In other words, he must receive more than $50,000...

  • It is your 25th birthday (end of 25 years) and you decide that you want to...

    It is your 25th birthday (end of 25 years) and you decide that you want to retire on your 65th birthday (end of 65 years - 40 years later). Your salary is $55,000 per year and you expect your salary to increase by 3% each year for the next 40 years. When you retire, you want your retirement fund to provide an annual payment equal to 80% of your salary at age 65 and to increase by 2% a year...

  • You fell that you can retire, if you have the equivalent of $2 million of today’s...

    You fell that you can retire, if you have the equivalent of $2 million of today’s purchasing power in your retirement account when you retire. Currently, you have $50,000 in this account and you anticipate that your investments will earn an average return of 6% per year (APR with monthly compounding). You expect to inflation to average 2% per year (also APR with monthly compounding). You want to retire exactly 30 years from today. You plan to start putting the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT