Uncle Fred recently died and left $370,000 to his 45-year-old favorite niece. She immediately spent $120,000...
Uncle Fred recently died and left $370,000 to his 45-year-old favorite niece. She immediately spent $120,000 on a town home but decided to invest the balance for her retirement at age 65. What rate of return must she earn on her investment over the next 20 years to permit her to withdraw $85,000 at the end of each year through age 85 if her funds earn 9 percent annually during retirement? Use Appendix A and Appendix D to answer the question. Round your answer to the nearest whole number.
Homework Answers
The present value of withdrawals at age of 65 can be calculated as:
The amount invested at age of 45 is ($370,000 - $120,000) = $250,000.
Rate of return earned over 20 years is:
Rate of return is 5.8264% or 6% (rounded off to whole number).
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Uncle Fred recently died and left $370,000 to his 45-year-old
favorite niece. She immediately spent $120,000...
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Uncle Fred recently died and left $320,000 to his 45-year-old
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decided to invest the balance for her retirement at age 65. What
rate of return must she earn on her investment over the next 20
years to permit her to withdraw $75,000 at the end of each year
through age 80 if her funds earn 10 percent annually during
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Uncle Fred recently died and left $350,000 to his 55 year old niece she immediately spent...
Uncle Fred recently died and left $350,000 to his 55 year old niece she immediately spent $110,000 on a townhome but decided to invest balance for her retirement at age 65 what rate of return must you earn on her investment over the next 10 years to permit her to withdraw $65,000 at the end of each year through age 80 if her funds earn 9% annually during retirement use appendix a and appendix d to answer the question round...
2. [9 points] Uncle Fred recently passed away and left $325,000 to his 50-year-old favorite niece....
2. [9 points] Uncle Fred recently passed away and left $325,000 to his 50-year-old favorite niece. She immediately spent $100,000 on a town home but decided to invest the balance for her retirement at age 65. What rate of return must she earn on her investment over the next 15 years to permit her to withdraw $75,000 at the end of each year of her retirement through age 80 if her funds earn 10 percent annually during her retirement?
Hi, i just need the highlighted ones. Thank you! CHAPTER 1 Understanding Personal Finance 33 LET'S...
Hi, i just need the highlighted ones. Thank you!
CHAPTER 1 Understanding Personal Finance 33 LET'S TALK ABOUT IT 1. Economic Growth. What tpes of federal government Federal Reserve. Describe some economic circumstances that might persuade the Federal Reserve to lower short-term inter- ctfoets to help stimulate economic growth affect 2 The Business Cycle. Where is the United States in the economic cycle now, and where does it seem to be heading? List some indicators that suggest in which direction...
Your uncle is 70 years old. Over the years, he has accumulated savings of $400,000. He...
Your uncle is 70 years old. Over the years, he has accumulated
savings of $400,000. He estimates that he will live another 10
years at the most and he wants to spend his savings by then. He
places his $400,000 into an account earning 8% annually and sets it
up in such a way that he will be making 10 equal annual
withdrawals.
How much will he be able to withdraw
each year?
Your mother is planning to retire this...
2. [9 points] Uncle Fred recently passed away and left $325,000 to his 50-year-old favorite niece. She immediately spent $100,000 on a town home but decided to invest the balance for her retirement at age 65. What rate of return must she earn on her investment over the next 15 years to permit her to withdraw $75,000 at the end of each year of her retirement through age 80 if her funds earn 10 percent annually during her retirement?
Hi, i just need the highlighted ones. Thank you!
CHAPTER 1 Understanding Personal Finance 33 LET'S TALK ABOUT IT 1. Economic Growth. What tpes of federal government Federal Reserve. Describe some economic circumstances that might persuade the Federal Reserve to lower short-term inter- ctfoets to help stimulate economic growth affect 2 The Business Cycle. Where is the United States in the economic cycle now, and where does it seem to be heading? List some indicators that suggest in which direction...
Your uncle is 70 years old. Over the years, he has accumulated
savings of $400,000. He estimates that he will live another 10
years at the most and he wants to spend his savings by then. He
places his $400,000 into an account earning 8% annually and sets it
up in such a way that he will be making 10 equal annual
withdrawals.
How much will he be able to withdraw
each year?
Your mother is planning to retire this...
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