PMT =5900
Number of Periods =20*12 =240
Rate per month =4.5%/12
PV of Lump sum amount =PMT*((1-(1+r)^-n)/r
=5900*((1-(1+4.5%/12)^-240)/(4.5%/12)) =932586.08
3) You are at retirement age and one of your benefit options is to accept a...
Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $127,000 immediately as her full retirement benefit. Under the second option, she would receive $14,000 each year for 10 years plus a lump-sum payment of $53,000 at the end of the 10-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables....
Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $130,000 immediately as her full retirement benefit. Under the second option, she would receive $19,000 each year for 5 years plus a lump-sum payment of $75,000 at the end of the 5-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables....
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $130,000 immediately as her full retirement benefit. Under the second option, she would receive $19,000 each year for 5 years plus a lump-sum payment of $75,000 at the end of the 5-year period. Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factors) using tables....
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $141,000 immediately as her full retirement benefit. Under the second option, she would receive $20,000 each year for 8 years plus a lump-sum payment of $60,000 at the end of the 8-year period. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables....
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $141,000 immediately as her full retirement benefit. Under the second option, she would receive $20,000 each year for 8 years plus a lump-sum payment of $60,000 at the end of the 8-year period. Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using tables....
Future Value of Multiple Annuities Assume that you contribute $220 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $320 per month for another 20 years. Given a 7.0 percent interest rate, what is the value of your retirement plan after 40 years? $178,636 $177,600 $629,552 $577,459 Present Value of an Annuity Due If the present value of an ordinary, 3-year annuity is $5,900 and interest rates are 12 percent, what's...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.7% x Service years Final year's salary Stanley Mills was hired by Clark at the beginning of 1999. Mills is expected to retire at the end of 2043 after 45 years of service. His retirement is expected to span 15 years. At the end of 2018, 20 years after being hired, his salary is $85,000. The company's actuary projects Mills's salary to be $320,000 at...
Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $139,000 immediately as her full retirement benefit. Under the second option, she would receive $26,000 each year for 7 years plus a lump-sum payment of $58,000 at the end of the 7-year period.Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.Required:1-a. Calculate the...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.7% x Service years Final year's salary Stanley Mills was hired by Clark at the beginning of 1999. Mills is expected to retire at the end of 2043 after 45 years of service. His retirement is expected to span 15 years. At the end of 2018, 20 years after being hired, his salary is $85,000. The company's actuary projects Mills's salary to be $320,000 at...
The retirement benefit program from your employer will send you 240 monthly checks of $5,000 after you retire. The first check will be a month from your retirement. The interest and discount rates are 0.2%/month, compounded monthly. If you retire today, then what is the present value of this benefit program?