Question

Mary and Peter are birthday buddy and just turned 42. Today, Mary told Peter that she started her retirement saving exactly twenty years ago, $200 a month. Peter did not prepare his retirement at all and decided to start his first saving today. Both plan to retire their 67th birthday. Since Mary started 20 years earlier than Peter and both have 25 years to save in the future before their retirement, Peter decided to deposit three times more than Mary per month to catch up. Assume both accounts earn 9.5% per year. Please find who will have how much more when they retire? Mary will not change her retirement saving amount. To have equal amount as Mary’s retirement account at age 67, how much Peter should deposit monthly?

Answer #1

Mary turned 20 today. She has decided to begin an
annuity account to prepare for her future. She can
afford to put $50/month in the investment. The account
returns 7% annual interest. She hopes she will be able
to keep the account until she retires at 65. If she
retires on her birthday, how much money will she have from the
annuity for her retirement?
Ashley, Mary’s twin sister, thinks she is nuts. She
has 45 years to worry about that. Then, when Ashley
turned 45, she...

Mary's 25th birthday is today, and she hopes to retire on her
65th birthday. She has determined that she will need to have
$5,000,000 in her retirement savings account in order to live
comfortably. Mary currently has no retirement savings, and her
investments will earn 7% annually. How much must she deposit into
her account at the end of each of the next 40 years to meet her
retirement savings goal?

This is a classic retirement problem. Your friend, Mary Jones,
is celebrating her 30th birthday and wants to start
saving for her anticipated retirement. She has the following years
to retirement and retirement spending goals, which are as
follows:
Years until
retirement:
30
Amount to withdraw each year upon
retirement:
$90,000
Years to withdraw in
retirement:
20
Interest
rate:
5%
Mary is planning to make equal annual deposits into her
retirement account, while her first withdrawal will take place one...

You just turned 18 years old today and decided you want to
accumulate $6,000,000 for retirement. You figure you can start
making weekly deposits into a mutual fund that promises to pay an
average yield of 12% per year. You intend to make the first deposit
at the end of this week and retire exactly on the day of your
67th birthday. How much money should you deposit weekly
in the mutual fund to meet your goal?

Your friend Ellen is celebrating her 25th birthday (i.e., she is
25 today) and wants to start saving for her anticipated retirement
at age 55. She wants to be able to withdraw $10,000 from her
savings account on each birthday for 10 years following her
retirement (the first withdrawal will be on her 56th birthday).
Ellen intends to invest her money in the local saving bank, which
offers 8% (EAR) interest per year.
Suppose Ellen wants to make 24 deposits...

You turned 35 today and have begun to think about saving for
retirement. You anticipate that you will retire at age 67 (on your
birthday), and will need $120,000 a year for 20 years, with the
first withdrawal occurring from the retirement account occurring on
your 67th birthday, and the last withdrawal occurring on your 86th
birthday.
a) If you begin to make monthly payments into your retirement
account today (on your 35th birthday), with the last payment into
the...

Question 3 Unsaved Today is Janet’s 23rd birthday. Starting
today, Janet plans to begin saving for her retirement. Her plan is
to contribute $ 4 ,000 to a brokerage account each year on her
birthday. Her first contribution will take place today. Her 42nd
and final contribution will take place on her 64th birthday. Her
aunt has decided to help Janet with her savings, which is why she
gave Janet $ 2 0,000 today as a birthday present to help...

Your friend is celebrating her 25th birthday today and wants to
start saving for her anticipated retirement at age 65( she will
retire on her 65th birthday). She woukd like to be able to withdraw
$60,000 from her savings account on each birthday for at least 25
years following her retirement (the first withdrawl will be on her
66th birthday).
Your friend wants to invest her money in the local savings
bank which offers 5.5% per year. She wants to...

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...

Your friend is celebrating her 25th birthday today and wants to
start saving for her anticipated retirement at age 65(she will
retire on her 65th birthday). She would like to be able to withdraw
$60,000 from her saving account on each birthday for at least 25
years following her retirement (the first withdrawl will be on her
66th birthday).
Your friend intends to invest her money in the local savings
bank which offers 5.5% per year. She wants to make...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 4 minutes ago

asked 5 minutes ago

asked 6 minutes ago

asked 9 minutes ago

asked 25 minutes ago

asked 27 minutes ago

asked 38 minutes ago

asked 39 minutes ago

asked 40 minutes ago

asked 42 minutes ago

asked 42 minutes ago