Question

You are 21 and want to retire at the age of 65. Starting on your retirement date you’d like to have an annuity paying $50,000 per year until you are 85. Your uncle is giving you $10,000 this year to get you started on your savings. How much more would you need to save each year to finish funding your retirement? Interest rates are 6%.

Answer #1

You are 21 and want to retire at the age of
60. Starting on your retirement date you’d like to have
an annuity paying $25,000 per year for 25 years. Your
uncle is giving you $10,000 when you graduate. How much
would you need to save every year from next year to retirement to
finish funding this annuity? Interest rates are 6%.

1.You are 18 today want to retire at age 65.
Starting with the day of your retirement, you would like to have an
annuity initially in the amount of $35,000 per year (but growing at
a 3% annual rate) for 35 years. You
will inherit $30,000 from your long lost uncle when you turn 34 and
save that money as part of your financial plan. Assume an interest
rate of 7% for all periods? How much must you put into...

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....

You are 43 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 95 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $98,093 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You are 44 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 96 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $94,725 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

Today is your 40th birthday. You expect to retire at age 65, and
actuarial tables suggest that you will live to be 100. You want to
move to Hawaii when you retire. You estimate that it will cost you
$200,000 to make the move (on your 65th birthday). Starting on your
65th birthday and ending on your 99th birthday, your annual living
expenses will be $25,000 a year. You expect to earn an annual
return of 7% on your savings. ...

Assume your goal is to retire at age 65 and you estimate you
will live until age 90. Your income at age 30 is $50,000 and you
expect this to increase at a rate of 8% per year. The nominal rate
of return on your investment portfolio is 6% and you plan to save
15% of your income per year. The expected rate of inflation is
3%.
How much will your fund pay per year during your retirement?

You are 40 years old and want to retire at age 60. Each year,
starting one year from now, you will deposit an equal amount into
a savings account that pays 7% interest. The last deposit will be
on your 60th birthday. On your 60th birthday you will switch the
accumulated savings into a safer bank account that pays only 3.5%
interest. You will withdraw your annual income of $120,000 at the
end of that year (on your 61st birthday)...

You have a couple who are 31 years old, and want to retire at
the age of 67. Knowing that, the couple has a combined annual
income of $95,000 today.
1. If the couple want to procrastinate their retirement savings
until they reach 35, and if retirement savings will grow at a rate
of 8%, how much would they need to save per year, at the end of
every year, in order to achieve the $2 million target by the...

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...

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