Question

You just celebrated your 30th birthday and plan to retire when you turn 64. You have...

  1. You just celebrated your 30th birthday and plan to retire when you turn 64. You have $15,568 accumulated in your RRSP and plan to deposit additional money each month to your RRSP for 34 years, starting today. On your 64th birthday you plan to withdraw $45,000 to pay off your mortgage and the remaining funds will be used to buy an annuity that will pay you $4,000/month for 26 years, with the first withdrawal starting one month after your 64th birthday. You anticipate earning 6.5%, compounded monthly, the entire time.
  1. How much must you deposit each month into your retirement plan?

ANSWER: __________________________

  1. How much interest did you earn over the entire 60 years?

ANSWER: __________________________

  1. Suppose instead of withdrawing $45,000 when you turn 64, you deposit $41,000 from a retirement bonus you will get when you retire. How much must you deposit each month?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you...
You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you have $105,736.62 accumulated in your retirement plan and plan to continue adding money each month to your retirement plan for exactly 25 years, starting one month from now. When you retire you will receive a $40,000 retirement bonus from your employer and will immediately deposit the money into your retirement plan. You will then use the accumulated funds to purchase an annuity that will...
You just turned 20 years old and want to retire when you turn 65. You plan...
You just turned 20 years old and want to retire when you turn 65. You plan to put $3,500 every year into a ROTH IRA, a retirement account from which you can withdraw money after retirement without having to pay any taxes. You expect to earn a return of 4% on your investments every year.   1. How much money can you expect to have at age 65 if you make your first annual deposit now and your last one on...
You just turned 20 years old and want to retire when you turn 65. You expect...
You just turned 20 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $100,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 6% on your investments every year. What is the present value (as of your 65th birthday) of the withdrawals you expect to make? How much money should you save each year if you make the first...
you just turned 25 years and want to retire when you turn 65. you plan to...
you just turned 25 years and want to retire when you turn 65. you plan to put $3,500 every year into retirement account from which youncan withdraw money after retirement without having to pay any taxes. you expect to earn a return of 7% on your investments every year. how much money you can expect to have at age 65 if you make your annual deposit now and your last one on the day you turn64?
You just turned 25 years old and want to retire when you turn 65. You expect...
You just turned 25 years old and want to retire when you turn 65. You expect to withdraw $90,000 per year for 25 years during retirement, starting first withdrawal one year after your 65th birthday. You expect to earn a return of 8% on your investments every year. part 1 How much retirement saving do you need to have by 65th birthday to support the withdrawals in the next 25 years? Or the same question can be asked differently, what...
Joe Smith just celebrated his 30th birthday and has decided that he needs to start saving...
Joe Smith just celebrated his 30th birthday and has decided that he needs to start saving towards retirement. He plans on retiring on his 60th birthday. Through his 30s he plans on saving $500 per month starting one month from his birthday. Through his 40s he plans on saving $1000 per month. Through his 50s he plans on saving $2000 per month. If he can invest these savings in an investment that pays 6% (annually rate) how much money will...
Intro You just turned 23 years old and want to retire when you turn 65. You...
Intro You just turned 23 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $80,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 5% on your investments every year. Pt 1. What is the present value (as of your 65th birthday) of the withdrawals you expect to make in retirement? Attempted answer: 1127515.56 (WRONG) 80000* [ 1 -...
Happy​ birthday! You are 30 years old today. You want to retire at age 60. You...
Happy​ birthday! You are 30 years old today. You want to retire at age 60. You want to have ​$1,800,000 at retirement. ​ Realistically, you know that the most that you can save from your 31st birthday until your 50th is ​$5,500 per year​ (you only save on your​ birthdays!). How much do you have to save each year from your 51st to your 60th birthday in order to achieve your retirement goal if you can earn 6​% on your​...
You just turned 22 years old and want to retire when you turn 65. You plan...
You just turned 22 years old and want to retire when you turn 65. You plan to put $3,500 every year into a ROTH IRA, a retirement account from which you can withdraw money after retirement without having to pay any taxes. You expect to earn a return of 6% on your investments every year. Attempt 1/5 for 12 pts. Part 1 How much money can you expect to have at age 65 if you make your first annual deposit...
You turn 35 today, and you plan to save $2,000 each month for retirement, with the...
You turn 35 today, and you plan to save $2,000 each month for retirement, with the first deposit made at the end of this month. You plan to retire 30 years from today, when you turn 65, but you're not sure how long you can expect to live after retirement, so you want the payments to go on forever. Under these assumptions, how much can you spend each month after you retire? Your first withdrawal will be made at the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT