Question

You plan to retire 34 years from now. You expect that you will live 22 years after retiring. You want to have enough money upon reaching retirement age to withdraw $140,000 from the account at the beginning of each year you expect to live, and yet still have $2,500,000 left in the account at the time of your expected death (56 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 34 years. You expect that you will be able to earn 12% per year on your deposits. However, you only expect to earn 7% per year on your investment after you retire since you will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal?

Answer #1

You plan to retire 37 years from now. You expect that you will
live 25 years after retiring. You want to have enough money upon
reaching retirement age to withdraw $110,000 from the account at
the beginning of each year you expect to live, and yet still have
$2,500,000 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 at the end of...

Ahmad Abu Al-Hawa plans to retire 40 years from now. He expects
that he will live 30 years after his retirement. He wants to have
enough money upon reaching retirement age to be able to withdraw
$180,000 from his account at the end of each year he expects to
live. Ahmad plans to accumulate the retirement fund by making an
equal deposit at the of each year for the next 40 years. The
interest rate is expected to be 12%...

You retire at age 60 and expect to live another 23 years. On the
day you retire, you have $568,900 in your retirement savings
account. You are conservative and expect to earn 5.2% on your money
during your retirement. How much can you withdraw from your
retirement savings each month if you plan to die on the day you
spend your last penny?
i. Write down the discounted cash flow equation.
ii. Solve the equation to find the monthly withdrawal...

you plan to retire 35 years from today. You want to invest the
same amount each year starting one year from now so you can
withdraw $50000 each year during your retirement. You expect to
live independently for 25 years following your retirement. You also
need a lump sum of 350000 in 60 years to pay for permanent nursing
care until you die. You earn 10% per year. You intend to make your
first withdrawal one year after retiring. How...

you
just turned 25 years and want to retire when you turn 65. you plan
to put $3,500 every year into retirement account from which youncan
withdraw money after retirement without having to pay any taxes.
you expect to earn a return of 7% on your investments every year.
how much money you can expect to have at age 65 if you make your
annual deposit now and your last one on the day you turn64?

You want to retire in 40 years and plan to invest $1,800 per
month until you retire. If you would like to be able to withdraw
$600,000 per year for 25 years during retirement, what annual rate
will you have to earn until retiring if you expect to earn 5% after
you retire?
A.)9.01%
B.)7.50%
C.)13.96%
D.)10.13%
E.)11.64%

1. You plan to retire in 33 years and
can invest to earn 18%. You estimate that you will need Rs
1,000,000 at the end of each year for an estimated 18 years after
retirement, and you expect to earn 5% during those retirement
years. How much do you need to set aside at the end of each year to
accumulate the money needed for your retirement?

You just turned 20 years old and want to retire when you turn
65. You plan to put $3,500 every year into a ROTH IRA, a retirement
account from which you can withdraw money after retirement without
having to pay any taxes. You expect to earn a return of 4% on your
investments every year.
1. How much money can you expect to have at age 65 if you make
your first annual deposit now and your last one on...

Suppose you are 30 years old and want to retire at the age of
age 70 and expect to live another 20 years. On the day you retire,
you want to have $1,000,000 in your retirement savings
account.
i. If you invest monthly starting one month from today and your
investment earns 6.0 percent per year, How much money do you need
to invest every month until you retire?
ii. Now you’re retired with $1,000,000 and you have 20 more...

You are 35 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 85 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $83,697 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

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