Question

A woman worked for 30 years before retiring. At the end of the first year of employment she deposited 5000 into an account for her retirement. At the end of each subsequent year of employment, she deposited 3% more than the prior year. The woman made a total of 30 deposits. She will withdraw 50,000 at the beginning of the first year of retirement and will make annual withdrawals at the beginning of each subsequent year for a total of 30 withdrawals. Each of these subsequent withdrawals will be 3% more than the prior year. The final withdrawal depletes the account. The account earns a constant annual effective interest rate. Calculate the account balance after the final deposit and before the first withdrawal.

Please do it by actuary way

Answer #1

Jason plans to retire in 35 years and live 30 years after his
retirement.
He will save $10,000 every year, starting from next year until
his retirement (i.e. 35 years from today).
After retirement, Jason wants to make 30 annual withdrawals.
The withdrawals are the same over years. The first
withdrawal will be made in the first year after his
retirement.
The annual interest rate is 5%, which applies the whole
time to his retirement account.
How much can Jason...

You deposit $2,500 per year at the beginning of each of the next
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period. The first withdrawal is made at the begining of the first
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Assume that you are 30 years old today, and that you are
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contribution will be made on your 31st birthday and will be 8% of
this year’s salary. Likewise, you expect the...

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the 20 years of retirement. Assuming that his first withdrawal
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Happy birthday! You are 30 years old today. You want to retire
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Assume that you are 24 years old today, and that you are
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PROBLEM 7 – Time-Value-of-Money and Retirement Planning
Ellen is 30 years old and plans to start saving $10,000
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her retirement, she will move her savings, (i.e. her “nest egg”)
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first withdrawal will be made...

BACKGROUND:
Jason wants to know how much money he needs to have in his
retirement account on the day he retires. Jason makes the following
ASSUMPTIONS:
--He will withdraw a DIFFERENT amount from his retirement
account each year he is retired. He will adjust the withdrawals for
inflation each year, following his first annual withdrawal.
--Jason wants to withdraw the equivalent of $75,000 (in terms of
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each withdrawal will...

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Starting on his 65th birthday, he makes 120 equal
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A man aged 30 deposits $500 at the end of each month for 35
years into a registered retirement savings account fund paying
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Starting on his 65th birthday, he makes 120 equal
monthly withdrawals from the fund at the beginning
of each month. During this period, the fund pays interest at 7%
compounded annually. Calculate the amount of each
withdrawal (annuity payment). A timeline may assist you in solving
this calculation. (10 points)

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