Question

For this discussion forum, write a question relating to your personal finances or the finances of a past/previous employer. The question should be answerable using what you have learned in either of the past two modules. To preserve privacy, you can change the financial numbers, fictionalize the scenarios, and/or change the names of the people involved. Here are some examples of types of questions you could ask:

- Based on the annual amount you will want to withdraw during retirement, how much do you need to contribute to your retirement fund on an annual basis in order to retire in 20 years? Be sure to take into account the amount currently in your retirement fund, the interest rate on your savings, and the number of years you expect to make withdraws.
- You have a child entering first grade and want to have enough saved to pay for four years of college tuition at a typical in-state school. How much do you need to save on an annual basis in order to have enough to cover college tuition? Be sure to take into account the current tuition at in-state schools, the projected inflation rate for tuition, and the interest rate of your savings.

Answer #1

in
order to save for your retirement you want to save $3000 every year
for 14 years starting one year from now. the annual interest rate
on your savings account is 7%. jow much monry will uou have in your
account in 14 years?

You want to come up with a plan to save for retirement. You will
contribute to your retirement account monthly for 40 years. One
month after your last contribution you will begin monthly
withdrawals of $7,500 from that retirement account. You earn 6.6%
APR while you’re contributing to your retirement savings and 3.6%
APR while you are withdrawing. You want to have enough money to
finance 35 years in retirement. (Assume compounding frequencies
match the payment frequencies.)
What variable would...

You are starting your first professional job after graduation
and evaluating three alternatives for your retirement savings in
conjunction with your college loan repayment and car purchase
plans. Your company 401K retirement plan will match your retirement
savings contribution up to $6000/year (about 8% of your annual
salary). Your 401K retirement investment fund has a long-term
annual return of about 7%.
Alterative-1: You can repay your
college loan at $6000/yr in 5 years, but your budget with a new-car
purchase...

You are saving for your child’s college education. Tuition will
be $30,000 each year for four years, with the first tuition payment
due 18 years from today. • How much do you need to deposit today in
a bank account that earns 6% annual interest from now through the
end of your child’s college education so that you will have enough
money to meet all the tuition payments?

I am establishing a savings account paying 6% annual return to
fund a portion of my son’s college tuition. I want to make a
withdrawal of an equal amount from the savings at the end of each
of his first 4 years of college. I will have $24,256 in the savings
account when he begins college and will keep the account open for 4
years. Identify the details below that I need in order to determine
the dollar amount I...

This is a personal financial planning problem that includes both
retirement for your client and college tuition for one student,
your client's child.
Your client has the following characteristics:
Current age: 24 yrs
Retirement age: 67 yrs
Expected lifetime: 95 yrs
Desired pension: 60,000 usd/yr
Child's current age: 3 yrs
Will attend college starting at age: 19 yrs
Will complete college starting at age 23 yrs
Tuition: 15,000 usd/yr for 4 yrs
Rate of return: 5.00%
Calculate the annual payments...

Use the data below to calculate how much the family must
save each month from today (2020) until the child starts
college (assuming the child will begin college at age 18) in order
to have a college saving fund significant to pay for the child’s
college education. You need to take into consideration the college
tuition inflation rate (how much tuition cost increase each year),
how long the child will be in college, and the family’s savings
rate.
Must Include...

Creating a retirement fund Personal Finance Problem To
supplement your retirement, you estimate that you need to
accumulate
$230,000
exactly
40
years from today. You plan to make equal, end-of-year deposits
into an account paying
7%
annual interest.a. How large must the annual deposits be to
create the
$230,000
fund by the end of
40
years?b. If you can afford to deposit only
$960
per year into the account, how much will you have accumulated
in
40
years?
a. The...

Fred and Louise are 38 years old and plan on retiring at age 67
and expect to live until age 95.
Fred currently earns $150,000 and they expect to need $100,000 in
retirement. Louise is a stay at home
mom. They also expect that Social Security will provide $30,000 of
benefits in today’s dollars at age
67. He has been saving $17,000 annually in his 401(k) plan. Their
daughter, Ann, who was just
born, is expected to go to college...

MBA Finance Question: 1. A zero-coupon bond is a security that
pays no interest, and is therefore bought at a substantial discount
from its face value. If the interest rate is 9% with annual
compounding how much would you pay today for a zero-coupon bond
with a face value of $1,700 that matures in 4 years?
2. A financial institution offers a "double-your-money" savings
account in which you will have $2 in 6 years for every dollar you
invest today....

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