Question

1-Suppose your client is also very generous, and wishes to leave the entire $4,000,000 in savings...

1-Suppose your client is also very generous, and wishes to leave the entire $4,000,000 in savings to charity and her children upon her death. Also, to help assure its value, at retirement she plans to move all her savings into a less risky fund expected to earn an effective annual rate of 3%. Given her goal and the change in expected return, how much can she plan to withdraw from her account each month until her death?

2-The present value of a $1,000 per year perpetuity at an annual rate of 10% is $10,000. What is the present value of a $1,000 per year 100-year annuity at an annual rate of 10%?

please answer both questions for full rate

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

JUST WRITTEN IN EXCEL. NO EXCEL FUNCTION IS USED.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a. Suppose your client is 35 years old and has already saved $150,000 for retirement. How...
a. Suppose your client is 35 years old and has already saved $150,000 for retirement. How much does your client need to contribute to a fund each month for the next 25 years (first payment at the end of this month), to reach a retirement goal of 4,000,000, if the fund is expected to earn an effective annual rate of 12%? b. Suppose your client is also very generous, and wishes to leave the entire $4,000,000 in savings to charity...
Example 1: Future Value (FV) of a Present Single Sum Your client has $500,000 in an...
Example 1: Future Value (FV) of a Present Single Sum Your client has $500,000 in an IRA and has asked you to estimate its value when the client reaches retirement age in 8 years, assuming a 6% return each year. Example 2: Future Value (FV) of a present single Sum with Multiple Interest Rates Same facts as Example 1 except the client would like to adjust the asset allocation of the investments over time, evolving from a more aggressive strategy...
Suppose Rachel wishes to retire fifty years from today. She needs $8,000 per month once she...
Suppose Rachel wishes to retire fifty years from today. She needs $8,000 per month once she retires, with the first retirement funds withdrawn one month from the day Rachel retires. Rachel estimates that she will earn effective annual rate of 3.66% on her retirement funds. Rachel also believes she will need funds up and including her 40th birthday after retirement. How much must she deposit each year in her retirement funds, so that she has enough funds for retirement?
Your friend is celebrating her 22nd birthday today and wants to start saving for her anticipated...
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...
Your client is 21 years old. She wants to begin saving for retirement, with the first...
Your client is 21 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 11% in the future. a. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $   b. How much will she...
Your client is 23 years old. She wants to begin saving for retirement, with the first...
Your client is 23 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $15,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. A. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. B. How much will she have...
Your client is 21 years old. She wants to begin saving for retirement, with the first...
Your client is 21 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $10,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 6% in the future. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $   How much will she have at...
Your client is 34 years old. She wants to begin saving for retirement, with the first...
Your client is 34 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $2,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $   How much will she have at...
Your client is 29 years old. She wants to begin saving for retirement, with the first...
Your client is 29 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 12% in the future. A.If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. B. How much will she have at...
Your client is 21 years old. She wants to begin saving for retirement, with the first...
Your client is 21 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $7,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 12% in the future. *PLEASE DO NOT ROUND YOUR TOTALS!! A. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT