Question

Your friend is celebrating her 25th birthday today and wants to
start saving for her anticipated retirement at age 65( she will
retire on her 65th birthday). She woukd like to be able to withdraw
$60,000 from her savings account on each birthday for at least 25
years following her retirement (the first withdrawl will be on her
66th birthday).

Your friend wants to invest her money in the local savings
bank which offers 5.5% per year. She wants to make equal annual
deposits on each birthday in the new savings account she will
establish for her retirement fund. If she starts making these
deposits on her 26th birthday and continues to make deposits until
she is 65 (the last deposit will be on ber 65th birthday)

b.what amount must she deposit annually to be able to make the
desired withdrawls upon retirement ?

7,855.57

none of the above

5,546.04

11,111.07

5,891.68

Answer #1

Your friend is celebrating her 25th birthday today and wants to
start saving for her anticipated retirement at age 65(she will
retire on her 65th birthday). She would like to be able to withdraw
$60,000 from her saving account on each birthday for at least 25
years following her retirement (the first withdrawl will be on her
66th birthday).
Your friend intends to invest her money in the local savings
bank which offers 5.5% per year. She wants to make...

Your friend is celebrating her 35th birthday today wants to
start saving for her anticipated retirement at age 65. She wants to
be able to withdraw $105,000 from her savings account on each
birthday for 20 years following her retirement; the first
withdrawal will be on her 66th birthday. Your friend intends to
invest her money in the local credit union, which offer 7 percent
interest per year. She wants to make equal annual payments on each
birthday into the...

Your friend Ellen is celebrating her 25th birthday (i.e., she is
25 today) and wants to start saving for her anticipated retirement
at age 55. She wants to be able to withdraw $10,000 from her
savings account on each birthday for 10 years following her
retirement (the first withdrawal will be on her 56th birthday).
Ellen intends to invest her money in the local saving bank, which
offers 8% (EAR) interest per year.
Suppose Ellen wants to make 24 deposits...

Your friend is celebrating her 22nd birthday today
and wants to start saving for her anticipated retirement at age 60.
She estimates that the annual spending needs would be $210,000
based on the current price level, and inflation rate is expected to
be 4% per year. She wants to be able to make withdrawal for
spending needs on each year for 24 years following her retirement;
the first withdrawal will be on her 61st birthday. Your
friend intends to invest...

This is a classic retirement problem. A friend is celebrating
her birthday and wants to start saving for her anticipated
retirement. She has the following years to retirement and
retirement spending goals: - Years until retirement: 30 - Amount to
withdraw each year: $90,000 - Years to withdraw in retirement: 30 -
Interest rate: 8% Because your friend is planning ahead, the first
withdrawal will not take place until one year after she retires.
She wants to make equal annual...

Doreen is celebrating her 35th birthday and decides she needs to
start saving for retirement beginning at age 65. She wants to be
able to withdraw 90,000 annually for 15 years starting on her 66th
birthday. She intends to invest at 8% over the life of the account.
Her employer will contribute 1500 per year until she retires.
Additionally, she expects a 25,000 distribution from a family trust
on her 55th birthday which will be deposited into the retirement
account....

This is a classic retirement problem. Your friend, Mary Jones,
is celebrating her 30th birthday and wants to start
saving for her anticipated retirement. She has the following years
to retirement and retirement spending goals, which are as
follows:
Years until
retirement:
30
Amount to withdraw each year upon
retirement:
$90,000
Years to withdraw in
retirement:
20
Interest
rate:
5%
Mary is planning to make equal annual deposits into her
retirement account, while her first withdrawal will take place one...

Mary's 25th birthday is today, and she hopes to retire on her
65th birthday. She has determined that she will need to have
$5,000,000 in her retirement savings account in order to live
comfortably. Mary currently has no retirement savings, and her
investments will earn 7% annually. How much must she deposit into
her account at the end of each of the next 40 years to meet her
retirement savings goal?

Today is Derek’s 25th birthday. Derek has been advised that he
needs to have $3,491,566.00 in his retirement account the day he
turns 65. He estimates his retirement account will pay 5.00%
interest. Assume he chooses not to deposit anything today. Rather
he chooses to make annual deposits into the retirement account
starting on his 30.00th birthday and ending on his 65th birthday.
How much must those deposits be?

today is dereks 25th birthday derek has been advised that he needs
to have $2,407,780 in his retirement account the day he turns 65.
He estimates his retirement account will pay 7% interest .Assume he
chooses not to deposit anything today. Rather he chooses to make
annual deposits into the retirement account starting on his 29th
birthday and ending on his 65th birthday. How much must those
deposits be?

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