Question
Sam retires today at the age of 65 and invests his life savings into an account...
Sam retires today at the age of 65 and invests his life savings
into an account that is guaranteed to earn 4.12% per year. Sam
expects to live to the age of 87, withdraw $0.112mln from the
account at the end of each year, and leave his heirs $1.818mln
(this amount will be the account balance at the time of his death).
How much is Sam putting in the account today, in $ million? Round
to the nearest $0.001 million. E.g., if your answer is $1,234,758,
record it as 1.235.
Homework Answers
Answer #1
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
SOLVED WITH BA II PLUS CALCULATOR, NEED HELP WITH FORMULA, LET ME KNOW, WILL DO THAT AS WELL
Not the answer you're looking for?
Similar Questions
Case narrative: A young couple, both 25 years old, are planning to retire in 40 years...
Case narrative:
A young couple, both 25 years old, are planning to retire in 40
years at the age of 65. After they retire, they expect to live for
an additional 20 years, until age 85. They plan to begin saving for
retirement today and based on information from their financial
planner, they think they will earn 8% on their investment
compounded annually. They think they will earn 5% on their
retirement savings after they retire.
Question #1 answer: $1,295,283...
Your aunt is 65 years old and has just retired with $750,000 in her IRA account...
Your aunt is 65 years old and has just retired with $750,000 in
her IRA account She expects the investments in this account to earn
a return of 8.5% each year. She also expects to live for 30 years
in retirement. She plans to withdraw an equal amount from this
account each year starting now and also plans to leave $50,000 to
you in 30 years. How much can she withdraw per year from the
account?
1) You plan to live for 30 years after your retirement at age 65 and to...
1) You plan to live for 30 years after your retirement at age 65
and to have saved $1 million in your retirement account by then.
How much can you afford (i.e., maximum) to withdraw per month, at
the beginning of each month, assuming your savings generate a rate
of return of 6% per year? 2) For Q1 above, what would be the answer
if you also plan to leave $1.5 million for your kids when you die
at the...
You are 35 years old today and want to plan for retirement at age 65. You...
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...
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...
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....
James Smith is 30 years and wants to retire when he is 65. So far he...
James Smith is 30 years and wants to retire when he is 65. So
far he has saved (1) $5,000 in an IRA account in which his money is
earning 8.3 percent annually and (2) $4,000 in a money market
account in which he is earning 5.25 percent annually. James wants
to have $1 million when he retires. Starting next year, he plans to
invest the same amount of money every year until he retires in a
mutual fund in...
Brian Lee is 30 years and wants to retire when he is 65. So far he...
Brian Lee is 30 years and wants to retire when he is 65. So far
he has saved (1) $5,850 in an IRA account in which his money is
earning 8.3 percent annually and (2) $4,320 in a money market
account in which he is earning 5.25 percent annually. Brian wants
to have $1 million when he retires. Starting next year, he plans to
invest the same amount of money every year until he retires in a
mutual fund in...
When Jim retires at age 67, he wishes to withdraw all his superannuation as a lump...
When Jim retires at age 67, he wishes to withdraw all his
superannuation as a lump sum and use that to invest in an annuity
that pays him $80,000 each year for 15 years. This $80,000 income
comprises of part principal draw down on the lump sum he invested
and part interest he earns from the return on his lump sum. Jim can
earn a 4% p.a. return on his lump sum investment. By the final
year, he will have...
Today is your 40th birthday. You expect to retire at age 65, and actuarial tables suggest...
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. ...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 6 minutes ago
asked 19 minutes ago
asked 21 minutes ago
asked 25 minutes ago
asked 30 minutes ago
asked 39 minutes ago
asked 45 minutes ago
asked 50 minutes ago
asked 51 minutes ago
asked 57 minutes ago
asked 1 hour ago
asked 1 hour ago