Suppose you are doing some investment planning. Your goal is to have enough money when you retire...
Suppose you are doing some investment planning. Your goal is to have enough money when you retire so that you can take out $50,000 per year for 30 years. You are planning on building up this money by making monthly deposits to an investment account over the next 40 years. To achieve the retirement income you want, you will need to have accumulated an investment account whose value is sufficient to generate the desired payments. If you expect that while you are retired your account will earn 5%, how big does that investment account need to be when you retire for it to generate the payments that you want? Show your work.
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Suppose you are doing some investment planning. Your goal is to have enough money when you retire...
You are planning for your retirement and have decided the following: you will retire in 35...
You are planning for your retirement and have decided the following: you will retire in 35 years and would like to have $8,000 per month as retirement income for 30 years of retirement. You have access to an account that earns a 7% rate of return. a. How much will you need to have when you retire to be able to withdraw the desired $8,000 per month during your years of retirement? (Round your answer to the nearest cent) b....
You want to retire exactly 40 years from today. Your assumptions for valuation are as follows:...
You want to retire exactly 40 years from today. Your assumptions for valuation are as follows: -you choose 10% as your average annual return for investments made prior to retirement -you choose 6% for all investments held through retirement -you want your annual income through retirement to be $150,000-inflation is not a consideration -you want your retirement income payments to last for 20 years after which the account balance will be $0.00. a. How much do you need saved at...
You fell that you can retire, if you have the equivalent of $2 million of today’s...
You fell that you can retire, if you have the equivalent of $2 million of today’s purchasing power in your retirement account when you retire. Currently, you have $50,000 in this account and you anticipate that your investments will earn an average return of 6% per year (APR with monthly compounding). You expect to inflation to average 2% per year (also APR with monthly compounding). You want to retire exactly 30 years from today. You plan to start putting the...
You want to be able to withdraw $40,000 from your account each year for 30 years...
You want to be able to withdraw $40,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 5.6% interest while saving for retirement and 4.1% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? b) How much will you need to deposit each month until retirement to achieve your retirement goals? c)...
You are planning for your pension plan that you will start to invest money, deposit first...
You are planning for your pension plan that you will start to
invest money, deposit first saving a year from today, deposit last
at 20, and get retired after 20 years. You desire to take an
immediate trip, costing approximately 15000 TL.(t=20) when you
retire, and expect to live 25 more years, for which you need
12000TL each year, starting from one year from retirement. Your
savings will be equal and on annual basis. Savings will earn 10%
annually. a)...
Question 18 (3.5 points) You plan to retire 33 years from now. You expect that you...
Question 18 (3.5 points) You plan to retire 33 years from now. You expect that you will live 29 years after retiring. You want to have enough money upon reaching retirement age to withdraw $150,000 from the account at the beginning of each year you expect to live, and yet still have $2,300,000 left in the account at the time of your expected death (62 years from now). You plan to accumulate the retirement fund by making equal annual deposits...
Suppose you are exactly 25 years old and you are planning to save for your retirement...
Suppose you are exactly 25 years old and you are planning to save for your retirement which will happen in 40 years. You plan to deposit equal amount at the beginning of each month in your retirement account with the first saving made today. Assume the retirement account pays you 6% p.a. compounded monthly. (a) If you would like to have $1,000,000 in your retirement account 40 years later when you are retired, how much will you have to deposit...
You want to have $2.45 million when you retire in 37 years. You feel that you...
You
want to have $2.45 million when you retire in 37 years. You feel
that you can save $420 per month until you retire. What APR do you
have to earn in order to achieve your goal ?
You want to have $2.45 million when you retire in 37 years. You feel that you can save $420 per month until you retire. What APR do you have to earn in order to achieve your goal? Multiple Choice
When you start your first full-time job, you plan to open a retirement savings account. Your...
When you start your first full-time job, you plan to open a retirement savings account. Your goal is to retire 25 years from the day you start working. You will use a retirement investment account that pays 5.5% nominal interest, compounded annually, and you want to have exactly $400,000 in that account when you retire. You will make end of year deposits every year for the 25 years working, and you expect your income will increase 4% per year throughout...
How many months do you need to work to have enough money to retire? Assume you...
How many months do you need to work to have enough money to retire? Assume you want $1,000,000 to retire, you currently do not have any savings, but starting next month, you will be able to make monthly deposits of $500 into your retirement account that returns on average 5.5% per year compounded monthly. Question 18 options: 507 months 88 months 1056 months 782 months
You want to be able to withdraw $40,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 5.6% interest while saving for retirement and 4.1% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? b) How much will you need to deposit each month until retirement to achieve your retirement goals? c)...
You are planning for your pension plan that you will start to
invest money, deposit first saving a year from today, deposit last
at 20, and get retired after 20 years. You desire to take an
immediate trip, costing approximately 15000 TL.(t=20) when you
retire, and expect to live 25 more years, for which you need
12000TL each year, starting from one year from retirement. Your
savings will be equal and on annual basis. Savings will earn 10%
annually. a)...
Question 18 (3.5 points) You plan to retire 33 years from now. You expect that you will live 29 years after retiring. You want to have enough money upon reaching retirement age to withdraw $150,000 from the account at the beginning of each year you expect to live, and yet still have $2,300,000 left in the account at the time of your expected death (62 years from now). You plan to accumulate the retirement fund by making equal annual deposits...
You
want to have $2.45 million when you retire in 37 years. You feel
that you can save $420 per month until you retire. What APR do you
have to earn in order to achieve your goal ?
You want to have $2.45 million when you retire in 37 years. You feel that you can save $420 per month until you retire. What APR do you have to earn in order to achieve your goal? Multiple Choice
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