Hello there,
I am struggling with this problem, and I need someone to go over it and check if my answers are all correct please. I wasn't able to answer the last question for I couldn't figure it out. Thank you!
1) Commentary on the cartoon: The older worker (Boomer)
did not plan well for retirement, and has to work to supplement his
retirement check. The Social Security system spends money taken
from current workers to pay the benefits of today's retirees.
That explains the younger worker's (Generation X) response to the
older worker. Money is taken from his paycheck to fund the older
worker's social security check.
In the near future, there will not be enough people working to pay
all retirees at today's rate. The Social Security system will go
bankrupt. Social Security's options are to increase the money taken
from the workers paychecks or decrease the amount of money paid to
retirees. Neither option is popular. An alternative is to establish
your own retirement fund. We can use the formulas that we worked
with in this Module to analyze different retirement
plans.
Your Retirement: Plan 1 - Starting Early
a) Enter your desired amount of money you wish to receive
each month while retired = $ 2000 ( This is my
answer)
DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED
INCORRECT
b) Upon retirement (40 years from now) you want to receive
"x dollars" (amount of money you choose in Part a) each month for a
period of 28 years. This money resides in an account that pays 5.7%
interest. How much money must be in the account to fulfill your
goal?
Amount of money needed = $. 335379.75
DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT. Round
your answer to 2 decimal places as needed.
c) You plan to deposit money every month for 40 years into
an account that pays 6.1%. What monthly deposit must you make to
achieve the amount of money determined in the answer to Part b
above?
Payment amount = $. 163.89 ( This is my answer)
DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT. Round
your answer to 2 decimal places as needed.
d) How much money did you actually deposit into the
account?
Total amount deposited = $. 78667.20 ( This is
my answer)
DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT. Round
your answer to 2 decimal places as needed.
e) How much money will you actually receive in payments
during retirement?
Total amount received = $. 672000 ( This is my
answer)
DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT. Round
your answer to 2 decimal places as needed.
Your Retirement: Plan 2 - Waiting Until Middle
Agef) You wait until later to start saving for
retirement, and so are depositing money every month for only 20
years into an the same account that still pays 6.1%. What monthly
deposit must you make to achieve the amount of money determined in
the answer to Part b above?
Payment amount = $. 485.85 ( This is my
answer)
DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT. Round
your answer to 2 decimal places as needed.
g) How much money did you actually deposit in this
plan?
Total amount deposited = $. 116604 ( This is my
answer)
DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT. Round
your answer to 2 decimal places as needed.
h) How many times more costly is the monthly payment of
Plan 2 (saving for 20 years) compared to Plan 1 (saving for 40
years)?
(Hint: Divide Part f by Part c).
How many times more costly 20 year plan is compared to 40
year plan = .I do not know this part!
DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT. Round
your answer to 2 decimal places as needed
SUB pART | ||
Plan 1 | a | 2000 |
b | $335379.75 | |
c | $163.89 | |
d | $78667.49 | |
e | 672000 | |
Plan 2 | f | $717.31 |
g | $172153.43 | |
h | 4.38 |
Workings
Hello there, I am struggling with this problem, and I need someone to go over it...
Please show work thank you 1) Commentary on the cartoon: The older worker (Boomer) did not plan well for retirement, and has to work to supplement his retirement check. The Social Security system spends money taken from current workers to pay the benefits of today's retirees. That explains the younger worker's (Generation X) response to the older worker. Money older worker's social security check. taken from his paycheck to fund the In the near rure, there will or be enough...
1) Commentary on the cartoon: The older worker (Boomer) did not plan well for retirement, and has to work to supplement his retirement check. The Social Security system spends money taken from current workers to pay the benefits of today's retirees. That explains the younger worker's (Generation X) response to the older worker. Money is taken from his paycheck to fund the older worker's social security check. In the near future, there will not be enough people working to pay...
1) Commentary on the cartoon: The older worker (Boomer) did not plan well for retirement, and has to work to supplement his retirement check. The Social Security system spends money taken from current workers to pay the benefits of today's retirees. That explains the younger worker's (Generation X) response to the older worker. Money is taken from his paycheck to fund the older worker's social security check. In the near future, there will not be enough people working to pay...
Hello there, I need help with this question. I have answered all the question except the last 2. Can someone go over my problem and check my work and answer the last 2 please?! 2) Find a vehicle that you would like to own on the internet. a) Paste a picture or screen shot in the box below using the "mountain" button to add the picture. The picture should include the following: i) Picture of the vehicle. ii) Sale price...
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