Question

Ahmad Abu Al-Hawa plans to retire 40 years from now. He expects
that he will live 30 years after his retirement. He wants to have
enough money upon reaching retirement age to be able to withdraw
$180,000 from his account at the end of each year he expects to
live. Ahmad plans to accumulate the retirement fund by making an
equal deposit at the of each year for the next 40 years. The
interest rate is expected to be 12% in all future periods. if Ahmad
wants to withdraw the $180,000 from his account at the beginning of
each year, how much must Ahmad deposit today? Choose... Choose...
How much must Ahmad deposit Today accumulate the required amount?
How much must Ahmad deposit each year to accumulate the required
amount? Choose...

Answer #1

Michael plans to retire in 40 years. He is now trying to decide
how much to save for his retirement. He plans to deposit equal
amount at the beginning of each month in a retirement account for
40 years, with his first saving made today. Assume the retirement
account pays him an interest rate of 6.6% p.a., compounded monthly
and Michael would like to have $2,000,000 in his retirement account
40 years later
a) How much will he have to deposit...

Jason plans to retire in 35 years and live 30 years after his
retirement.
He will save $10,000 every year, starting from next year until
his retirement (i.e. 35 years from today).
After retirement, Jason wants to make 30 annual withdrawals.
The withdrawals are the same over years. The first
withdrawal will be made in the first year after his
retirement.
The annual interest rate is 5%, which applies the whole
time to his retirement account.
How much can Jason...

Your father is 50 years old and will retire in 10 years. He
expects to live for 25 years after he retires, until he is 85. He
wants a fixed retirement income that has the same purchasing power
at the time he retires as $45,000 has today. (The real value of his
retirement income will decline annually after he retires.) His
retirement income will begin the day he retires, 10 years
from today, at which time he will receive 24...

Your father is 50 years old and will retire in 10 years. He
expects to live for 25 years after he retires, until he is 85. He
wants a fixed retirement income that has the same purchasing power
at the time he retires as $55,000 has today. (The real value of his
retirement income will decline annually after he retires.) His
retirement income will begin the day he retires, 10 years
from today, at which time he will receive 24...

A woman plans to retire in 40 years, and she expects to live for
30 years after that. She wants to spend 10,000 a month after she
retires. To finance her retirement she is going to invest monthly
(with her investment one month from know) over 40 years at 12.6%.
After she retires she will move her investment to a more liquid
account earning 7.2% a year. Ignore taxes and transaction costs.
How much does she have to sabe a...

Your father is 50 years old and will retire in 10 years. He
expects to live for 25 years after he retires, until he is 85. He
wants a fixed retirement income that has the same purchasing power
at the time he retires as $40,000 has today. (The real value of his
retirement income will decline annually after he retires.) His
retirement income will begin the day he retires, 10 years
from today, at which time he will receive 24...

Assume that your brother is now 50 years old, that he plans to
retire in 10 years, and that he expects to live for 25 years after
he retires (i.e. until he is 85 years old). He wants a fixed
retirement income that has the same purchasing power at the time he
retires as $50,000 has today (he realizes that the real value of
his retirement income will decline year by year after he retires).
His retirement income will begin...

Your father is 50 years old and will retire in 10 years. He
expects to live for 25 years after he retires, until he is 85. He
wants a fixed retirement income that has the same purchasing power
at the time he retires as $40,000 has today. (The real value of his
retirement income will decline annually after he retires.) His
retirement income will begin the day he retires, 10 years from
today, at which time he will receive 24...

our father is 50 years old and will retire in 10 years. He
expects to live for 25 years after he retires, until he is 85. He
wants a fixed retirement income that has the same purchasing power
at the time he retires as $60,000 has today. (The real value of his
retirement income will decline annually after he retires.) His
retirement income will begin the day he retires, 10 years
from today, at which time he will receive 24...

Your father is 50 years old and will retire in 10 years. He
expects to live for 25 years after he retires, until he is 85. He
wants a fixed retirement income that has the same purchasing power
at the time he retires as $40,000 has today. (The real value of his
retirement income will decline annually after he retires.) His
retirement income will begin the day he retires, 10 years from
today, at which time he will receive 24...

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