Question

You wish to save money to provide for retirement. Beginning one year from now, you will...

You wish to save money to provide for retirement. Beginning one year from now, you will begin depositing a annual fixed amount into a retirement savings account that will earn 8% annually. You will make 30 such deposits. Then, one year after making the final deposit, you will withdraw $100,000 annually for 20 years (no more deposits). You wish to have $50,000 left in the account after the 20-year retirement period ends (note that this final cash flow has the same sign as the annual withdrawals).The fund will earn 6% annually during the 20-year retirement period. How much should you deposit annually over the 30-year savings period?

SHOW WORK IN EXCEL :)

Homework Answers

Answer #1

\

Formulae

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Daryl wishes to save money to provide for his retirement. Beginning one year from now, Daryl...
Daryl wishes to save money to provide for his retirement. Beginning one year from now, Daryl will begin depositing the same fixed amount each year for the next 30 years into a retirement savings account. Starting one year after making his final deposit, he will withdraw $100,000 annually for each of the following 25 years (i.e. he will make 25 withdrawals in all). Assume that the retirement fund earns 12% annually over both the period that he is depositing money...
Daryl wishes to save money to provide for his retirement. He is now 30 years old...
Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. 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...
Daryl wishes to save money to provide for his retirement. He is now 30 years old...
Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. 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...
Problem (5 marks) Daryl wishes to save money to provide for his retirement. He is now...
Problem Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. 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...
Deryl is saving money for his retirement. Beginning one month from now, he will begin depositing...
Deryl is saving money for his retirement. Beginning one month from now, he will begin depositing a fixed amount into a retirement account that will earn 12% compounded monthly. He will make 360 such deposits. Then, one month after making his final deposit, he will start withdrawing $8,000 monthly for 25 years. The fund will continue to earn 12% companded mon hly How large should Deryl's monthly deposits be to achieve his retirement goal? A. $190 B. $214 C. $200...
You wish to retire in 20 years. Currently, your pre-retirement fund has RM50,000 in a savings...
You wish to retire in 20 years. Currently, your pre-retirement fund has RM50,000 in a savings account yielding 3.0% annually and RM300,000 quality stocks yielding 11.0% annually. Furthermore, you expect to add RM8,000 to the savings account and RM15,000 to your stock portfolios at the end of each year in the next 20 year. You will keep this fund until the retirement date. 1.Calculate the overall rate of return per year that you must earn on your post-retirement fund if...
A year from now, you plan to begin saving for your retirement by making a deposit...
A year from now, you plan to begin saving for your retirement by making a deposit into a new savings account that has an expected return of 7.5% compounded monthly. You plan to continue depositing the same amount each year until you retire in 30 years. You expect to make withdrawals in the amount of $200 from your savings account every week for 45 years after you retire. Assume you were asked to find the amount you will need to...
You just turned 28 and are now seriously planning for your retirement. You wish to retire...
You just turned 28 and are now seriously planning for your retirement. You wish to retire two years earlier than the mandatory retirement age of 65. You hope to be able to make end-of-month withdrawals from your retirement account of P25,000 per month for a 30-year period after that. Your plan is to fund your retirement by making monthly deposits between now and when you retire. The initial monthly deposit will be made at the end of the coming month....
A year from now, you plan to begin saving for your retirement by depositing $20,000 into...
A year from now, you plan to begin saving for your retirement by depositing $20,000 into a new savings account that has an expected return of 5.75% compounded monthly. You plan to continue depositing the same amount each year until you retire in 35 years. You expect to make withdrawals from your savings account every month for 40 years after you retire. Assume you were asked to find the amount you will be able to withdraw each month from your...
A week from now, you plan to begin saving for your retirement by depositing $200 into...
A week from now, you plan to begin saving for your retirement by depositing $200 into a new savings account that has an expected return of 7.75% compounded monthly. You plan to continue depositing the same amount each week until you retire in 40 years. You expect to make withdrawals from your savings account every year for 35 years after you retire. Assume you were asked to find the amount you will be able to withdraw each year from your...