Homework Answers
Annual income in today's dollars = $72000
rate of inflation = 3%
Number of years (n)= 15
Future value of annual income needed = Present value*(1+inflation rate_^n
72000*(1+3%)^15
=112174
Social security benefits = 18000
(it is in nominal future value terms)
so annual income needed to fund = Annual requirement - social benefit
112174-18000
=94174
So answer is A, 94174
Add Answer to:
29. George and Julia anticipate that they will require an annual income of $72,000 (in today's...
30. George and Julia anticipate that they will require an annual income of $72,000 (in today's...
30. George and Julia anticipate that they will require an annual income of $72,000 (in today's dollars) when they retire 15 years from now. They expect to receive Social Security benefits of $18,000 per year at that time. In calculating their retirement savings need, they are assuming a 3% annual rate of inflation, an 8% after-tax return on investments, and a 25-year retirement period. What is the total amount of retirement fund or capital that George and Julia will require...
1. Most of you will be graduating from college in the near future. Starting early in...
1. Most of you will be graduating from college in the near future. Starting early in life with your own personal financial decision making is very important for long term financial success and in reaching many of your individual personal goals. A) What is your estimated annual income in your employment area after you graduate from Radford University? 1) If you are unsure, use your best guess. $$ 2) What will be your age when you graduate? jate? 29 23...
A married couple desire an annual retirement income of $40,000. They expect to live for 30 years past retirement. Assumi...
A married couple desire an annual retirement income of $40,000. They expect to live for 30 years past retirement. Assuming that the couple could earn a 3% after-tax and after-inflation rate of return on their investments, what amount of accumulated savings and investments would they need?
please with steps 2.) Brent and Sharon are getting close to retirement and want to make...
please with steps
2.) Brent and Sharon are getting close to retirement and want to make sure they are on track for a comfortable lifestyle. They currently make $120,000 per year in gross income. They pay FICA taxes of $9.180; have commuting expenses of S2,000 per year, Uniform expenses (inc, dry cleaning) of $1,200 per year, a monthly mortgage payment of S950 per month and will be paid off in 10 more years. They eat lunch out at work often...
Steve and Tanya (both currently 56) have determined that they will require retirement income equal to...
Steve and Tanya (both currently 56) have determined that they will require retirement income equal to $93,000 in today’s dollars, based on their current income. They plan to retire in 8 years and wish to assume an after-tax return on their investments, prior to retirement, of 8%. They plan to readjust their assets after retirement and believe that their net return will drop to 6%. Steve’s parents are both in their late eighties, and Tanya’s parents are in their seventies....
I need assistance with this question. 1. Jordan wants to retire in 15 years when he...
I need assistance with this question.
1. Jordan wants to retire in 15 years when he turns 65. Jordan wants to have enough money to replace 75% of his current pre-tax (before income tax and FICA) income in annual installments at the beginning of each year less what he expects to receive from Social Security. He expects to receive $20,000 per year from Social Security in today's dollars. Jordan is conservative and wants to assume a 6% annual investment rate...
Jerry and Jenny are 25 years old and plan on retiring at age 67 and expect...
Jerry and Jenny are 25 years old and plan on retiring at age 67 and expect to live until age 100. Jenny currently earns $150,000 and they expect to need $150,000 per year in today’s dollars in retirement. Jerry is a stay at home dad. They also expect that Social Security will provide $40,000 of benefits in today’s dollars at age 67. Jenny has been saving $5,000 annually in her 401(k) plan. Their son, Jazz, was just born and is...
Suppose that you are just about to retire, and you just turned 65. Your personal and...
Suppose that you are just about to retire, and you just turned 65. Your personal and family health history is such that you forecast that you will live to age 88. In retirement, you would like to have purchasing power of $60,000 (i.e., real dollars) before taxes. Suppose, for our example, that you anticipate receiving $20,000 in inflation-adjusted Social Security payments each year. Hence, your portfolio will need to provide $40,000 in real dollars each year. Assume that each payment...
Part 1: Tom and Debbie Flynn - Retirement Savings (15 points) Tom and Debbie are starting...
Part 1: Tom and Debbie Flynn - Retirement Savings (15 points) Tom and Debbie are starting to take their retirement planning seriously. They are both 46 and plan to retire in 20 years at the age of 66. They expect to live 15 years in retirement (a life expectancy of 81). Between their 401k and IRA accounts they currently have $67,966 in retirement savings They currently have a combined income of $88,000 per year and expect to be able to...
please answer 3-5. Use the following information to answer questions 3-5. Tim and Meg are trying...
please answer 3-5.
Use the following information to answer questions 3-5. Tim and Meg are trying to make sure they are saving enough for retirement. Together they earn $90,000 and they believe that when they retire in 20 years they should only need $80,000 in today's dollars to pay all their expenses in retirement. They are currently saving $1.000 at the end of month and they have accumulated $75,000 in their retirement accounts. Assuming inflation averages 3% per year (compounds...
30. George and Julia anticipate that they will require an annual income of $72,000 (in today's dollars) when they retire 15 years from now. They expect to receive Social Security benefits of $18,000 per year at that time. In calculating their retirement savings need, they are assuming a 3% annual rate of inflation, an 8% after-tax return on investments, and a 25-year retirement period. What is the total amount of retirement fund or capital that George and Julia will require...
1. Most of you will be graduating from college in the near future. Starting early in life with your own personal financial decision making is very important for long term financial success and in reaching many of your individual personal goals. A) What is your estimated annual income in your employment area after you graduate from Radford University? 1) If you are unsure, use your best guess. $$ 2) What will be your age when you graduate? jate? 29 23...
please with steps
2.) Brent and Sharon are getting close to retirement and want to make sure they are on track for a comfortable lifestyle. They currently make $120,000 per year in gross income. They pay FICA taxes of $9.180; have commuting expenses of S2,000 per year, Uniform expenses (inc, dry cleaning) of $1,200 per year, a monthly mortgage payment of S950 per month and will be paid off in 10 more years. They eat lunch out at work often...
I need assistance with this question.
1. Jordan wants to retire in 15 years when he turns 65. Jordan wants to have enough money to replace 75% of his current pre-tax (before income tax and FICA) income in annual installments at the beginning of each year less what he expects to receive from Social Security. He expects to receive $20,000 per year from Social Security in today's dollars. Jordan is conservative and wants to assume a 6% annual investment rate...
Part 1: Tom and Debbie Flynn - Retirement Savings (15 points) Tom and Debbie are starting to take their retirement planning seriously. They are both 46 and plan to retire in 20 years at the age of 66. They expect to live 15 years in retirement (a life expectancy of 81). Between their 401k and IRA accounts they currently have $67,966 in retirement savings They currently have a combined income of $88,000 per year and expect to be able to...
please answer 3-5.
Use the following information to answer questions 3-5. Tim and Meg are trying to make sure they are saving enough for retirement. Together they earn $90,000 and they believe that when they retire in 20 years they should only need $80,000 in today's dollars to pay all their expenses in retirement. They are currently saving $1.000 at the end of month and they have accumulated $75,000 in their retirement accounts. Assuming inflation averages 3% per year (compounds...
Most questions answered within 3 hours.
-
Random characters You decide to create a program characters.py
that fills a two-dimensional list with random...
asked 17 seconds from now -
What are the major sources of error in your determination of the
molar mass? Select all...
asked 3 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 24 minutes ago -
During the month of August, the average temperature of a lake
next to a local college...
asked 6 minutes ago -
Which of these four researchers is most likely to have made Type
1 error
Kim who...
asked 20 minutes ago -
In a performance test, each of two cars takes 8.9 s to
accelerate from rest to...
asked 20 minutes ago -
Sapphire Aerospace operates 52 weeks per year, and its cost of
goods sold last year was...
asked 24 minutes ago -
Create ER Model
Assets are resources that are used in CMS to display content.
Each asset...
asked 19 minutes ago -
For each the following molecules draw the best possible
structure based on formal charges for each...
asked 25 minutes ago -
A proton moves in the plane of this paper toward the top of the
page. A...
asked 34 minutes ago -
different divisions differing lines of business use
different costs of capital because their cost of equity...
asked 30 minutes ago -
Give an algorithm to determine whether or not the elements
of
an array of integers are...
asked 37 minutes ago