Question

(1 point)

**Problem 5 - Annuity Values on Any Date**

Boyan is saving for her retirement. How much money will she
accumulate by her 65th birthday based on the following saving
patterns:

a) Saving $25,000.00 on each birthday starting on her 57th57th
birthday and ending on her 64th birthday (inclusive), with
i=4.7%

AV =

b) Saving $1,000.00 per month starting one month after her 35th35th
birthday and ending on the day of her 52th birthday(included), with
i(12)=2.4%

AV =

Answer #1

a.

Number of deposit = 9 deposit (including 57 and begining and end of 64th year)

9th deposit is made on end of 64th year that is on 65th birthday.

Value at tim eof retirement is calculated in excel and screen shot provided below:

Total Saving at time of retirement on 65th birthday will be $272,281.80.

b.

Number of year of saving = 18 year (35th and 52nd year included)

monthly Saving = $1,000

value of saving at end of year 52 is calculated in excel and screen shot provided below:

value of saving at end of year 52 is $269,835.36.

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following month. Her company has agreed to match her contributions
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follows:
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30
Amount to withdraw each year upon
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through #6:
Kuipers, Inc.
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Less: Depreciation 1,890
Earnings before interest and taxes 2,510
Less: Interest paid 850
Taxable income 1,660
Less: Taxes 581
Net income 1,079
Addition to retained earnings 679
Dividends paid 400
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All of the followings are the rights and privileges of a
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a.
Voting/Proxy Rights
b.
Right to Dividends
c.
Residual Right
d.
Pre-emptive Right
e.
Right to Interest Payments
10 points
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