Question

QUESTION 10 Takashi plans to save $25,000 per year until he retires. His first savings contribution to his retirement account is expected in 1 year from today. Takashi plans to retire in 6 years from today, immediately after making his last $25,000 contribution to his retirenlent account. He then plans to be retired for 6 years. Takashi expects to earn 7.0 percent per year in his retirement account, both before and during his retirement. If Takashi receives equal annual payments from his retirement account during his retirement with the first of these annual retirement payments received in 1 year after he retires and the last of these annual retirement payments received in 6 years after he retires, then how much can Takashi expect each of his annual retirement payments to be? $25,000.00 (plus or minus 510) $37,518.26 (plus or minus $10) $29,805.38 (plus or minus $10) $19,860.58 (plus or minus $10) None of the above is within $10 of the correct answer

Answer 1

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02:59 ' ® v a ax 2 ENG 25-03-2020 29 • 7 X A1283 1 X ✓ fx AE AE AF AG AH AH AL AK AL AM AN - 261 262 263 RETIREMENT BA II PLUS 264 SET C/Y=P/Y = 1 265 266 267 -25000 268 N = PMT FV= I/Y = CPT FV = 269 178832.27 270 271 272 273 step 2 finding annual withdrawal 274 275 276 277 N = PV = FV= 1/Y = CPT PMT = -178832 278 279 25000.00 280 281 282 ANSWER 25000 283 284 201 NPV BOND Sheet6 Sheet4 PV FV choice EAR nper WACC Sheet1 Sheet2 Sheet3 Sheet5 HERO WACC AFN ... • : 1