Question

2. Gary Luff is trying to plan for retirement in 10 years, and currently he has $150,000 in a savings account and $250,000 in shares. In addition, he plans on adding to his savings by depositing $8,000 per year in his savings account at the end of each of the next five years and then $10,000 per year at the end of each year for the final five years until retirement. Required:

(a) Assuming Gary’s savings account returns 8% compounded annually while his investment in shares will return 12% compounded annually, how much will he have at the end of 10 years? (Ignore taxes). PLEASE SHOW FORMULA AND NOT FINANCIAL CAL

Answer #1

WITHOUT USING THR FINACIAL CALCULATOR OR EXCEL
2. Gary Luff is trying to plan for retirement in 10 years, and
currently he has $150,000 in a savings account and $250,000 in
shares. In addition, he plans on adding to his savings by
depositing $8,000 per year in his savings account at the end of
each of the next five years and then $10,000 per year at the end of
each year for the final five years until retirement. Required:
(a)...

Tom currently has $50,000 in savings intended for his retirement
in 10 years. He expects to live for 15 years post-retirement and he
would like to withdraw $110,000 at the end of each of his
retirement years. If he can invest his money in an account that
pays 10%, compounded annually, how much does he need to contribute
to his account every year to ensure he meets his retirement
goals?
Question 28 options:
$95,392.63
$65,884.09
$60,634.38
$49,609.55
$44,359.84

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month from now, he will begin depositing a fixed amount into a
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Then one year after making his final deposit, he will withdraw
$100,000 annually for 25 years. In addition, and after he passes
away (assuming he lives 25 years after retirement) he wishes to
leave...

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and Michael would like to have $2,000,000 in his retirement account
40 years later
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Beginning one year from now, Daryl will begin depositing the same
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Jones is planning for his retirement, which he understands will
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