Mpumi Madonsela has recently qualified to be a Chartered Management Accountant and she is working at...
Mpumi Madonsela has recently qualified to be a Chartered Management Accountant and she is working at one of the big four accounting firms. Due to the limited salary of an article clerk, Mpumi did not contribute to any provident fund. Fortunately for her, the firm contributed to a pension fund on her behalf. She was not content with only a pension fund but was adamant that she wanted a provident fund to supplement her very extravagant life style. Mpumi decided...
Prof. Business realizes she is entering the last quarter of her career and is considering retirement in 8 years. She is in a self-managed defined contribution pension plan and through automatic payroll deduction and University matching both based on mandated percentages of her salary $1300/month is currently deposited into her pension plan. Due to the lack of recent raises at her public university, she doesn’t plan on these monthly contributions increasing much if any over the next 8 years. Prof....
18. 65-year old John Smith retired in January 2020. He received N$ 200 000 lump sum from his employer. Some of his receipts for the year also included N$ 8 000 withdrawal benefit from a pension fund, N$ 300 000 retirement benefit from a provident fund and N$ 2 000 war pension. After retirement, John continued running the business that he had started a few years ago. During the year, the business earned N$ 90 000 in profits. Which one...
This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals: Years until retirement 35 Amount to withdraw each year $85,000 Years to withdraw in retirement 25 Interest rate 7.5% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account...
Question 6: This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals: Years until retirement 35 Amount to withdraw each year $85,000 Years to withdraw in retirement 25 Interest rate 7.5% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into...
Josie has just become eligible to participate in her company’s retirement plan; she is excited as her company matches her contributions dollar for dollar in this plan. The plan averages an annual return of 7% interest compounded monthly. Josie is 35 years old and plans to retire at age 65. She receives her pay at the beginning of each month and contributes 10% of her gross monthly salary of $2,500 into her retirement plan. What is the total amount that...
1. You aunt has just retired and has $5,000,000 in her retirement account. She expects to live for another thirty years (exactly) and wishes to leave $600,000 each to the Chicago Symphony Orchestra, Lyric Opera of Chicago and Illinois Tech when she is gone. What is the most that she could withdraw from this account at the end of each quarter and still leave the money to her desired beneficiaries? The fund is expected to return six percent per annum,...
1. Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time. $552 per month invested at 5%, compounded monthly, for 3 years; then $753 per month invested at 7%, compounded monthly, for 3 years. What is the amount in the account after 6 years? 2. Find the final amount in the following retirement account, in which the rate of return on the account and the...
Sharon has just retired, and has 400000 dollars in her retirement account. The account will earn interest at an annual rate of 8 percent, compounded monthly. At the end of each month, Sharon will withdraw a fixed amount to cover her living expenses. Sharon wants her savings to last exactly 25 years. How much money can she withdraw each month? (Give your answer in dollars, correct to the nearest cent.) monthly withdrawal: What is the maximum amount that Sharon can...
Investment Plan for Ilkay's Child Education İlkay Yaşam at age of 32 has been working for a worldwide company as an engineer with current net salary 10,000 TL. She decided to make an investment for her child's education for a 10-year time frame. In the last 8 years, she has saved a small fortune as an amount of 50,000 TL. She is little confused about type of the investment that she will make. There are two ways to invest her...