Question

QUESTION 9 Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $83,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 5.4% per year simple interest, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar.) Hint: This can be solved as a 30-year ordinary annuity plus one withdrawal at age 70, or as a 31-year annuity due.

Answer #1

Calculate the present value of the amount as follows:

Therefore, the present value is
**$1,302,740.01**.

Suppose you plan to retire at age 70, and you want to be able to
withdraw an amount of $83,000 per year on each birthday from age 70
to age 100 (a total of 31 withdrawals). If the account which
contains your savings earns 6% per year simple interest, how much
money needs to be in the account by the time you reach your 70th
birthday? (Answer to the nearest dollar.) Hint: This can be solved
as a 30-year ordinary...

Suppose you plan to retire at age 70, and you want to be able to
withdraw an amount of $87,000 per year on each birthday from age 70
to age 100 (a total of 31 withdrawals). If the account which
contains your savings earns 6.7% per year simple interest, how much
money needs to be in the account by the time you reach your 70th
birthday? (Answer to the nearest dollar.) Hint: This can be solved
as a 30-year ordinary...

QUESTION 9
Suppose you plan to retire at age 70, and you want to be able to
withdraw an amount of $83,000 per year on each birthday from age 70
to age 100 (a total of 31 withdrawals). If the account which
contains your savings earns 5.4% per year simple interest, how much
money needs to be in the account by the time you reach your 70th
birthday? (Answer to the nearest dollar.)
Hint: This can be solved as a...

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...

Suppose you are 30 years old and want to retire at the age of
age 70 and expect to live another 20 years. On the day you retire,
you want to have $1,000,000 in your retirement savings
account.
i. If you invest monthly starting one month from today and your
investment earns 6.0 percent per year, How much money do you need
to invest every month until you retire?
ii. Now you’re retired with $1,000,000 and you have 20 more...

Suppose you want to retire when you reach age 70, at that time
you want to have $1,000,000 accumulated in your retirement account.
Now your 25 years old, starting today, how much you have to save
equally, at the beginning of each year, in order to reach your
retirement goal if the account earns 5% annually compounded
interest?

Today is your 25th birthday, and you have calculated that you
need to accumulate $1.4 Million by your 70th birthday in order to
retire in a manner in which you are accustomed to living. If your
retirement account earns 8.4% per year simple interest, how much
must you deposit on each of your birthdays (from 26 to 70) in order
to reach your target retirement savings on your 70th birthday?
(Answer to the nearest dollar.)
The answer is = 3205....

You are 40 years old and want to retire at age 60. Each year,
starting one year from now, you will deposit an equal amount into
a savings account that pays 7% interest. The last deposit will be
on your 60th birthday. On your 60th birthday you will switch the
accumulated savings into a safer bank account that pays only 3.5%
interest. You will withdraw your annual income of $120,000 at the
end of that year (on your 61st birthday)...

You expect to retire in 20 years. After you retire, you want to
be able to withdraw $3,000 from your account each month for 15
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much will you need to deposit each month until retirement to
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You expect to retire in 25 years. After you retire, you want to
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years.
If your account earns 9% interest compounded monthly, how much will
you need to deposit each month until retirement to achieve your
retirement goals? (Round to the nearest cent.)

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