Question

# 27. 5-52 Investing for Retirement (LG4, LG9) Ross has decided that he wants to build enough...

27. 5-52 Investing for Retirement (LG4, LG9)

Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with \$4,600 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.

How much money does he need to contribute per month to reach his goal? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Contribute per month   \$

28.Problem 5-38 Annuity Interest Rate (LG8)

To borrow \$1,000, you are offered an add-on interest loan at 5 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year.

Compute the three equal payments. (Round your answer to 2 decimal places.)

Three equal payments   \$

30.Problem 5-46 EAR of Add-On Interest Loan (LG7, LG8)

To borrow \$950, you are offered an add on interest loan at 9.5 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.)

Equal payments   \$

Compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.)

EAR     %

32.Problem 4 and 5-3 Future Value and Number of Annuity Payments

Your client has been given a trust fund valued at \$1.15 million. He cannot access the money until he turns 65 years old, which is in 30 years. At that time, he can withdraw \$22,500 per month.

If the trust fund is invested at a 4.0 percent rate, compounded monthly, how many months will it last your client once he starts to withdraw the money? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Number of months

27.

Monthly Withdrawal will be \$4,600 for 30 year. So total Amount require at time of retirement is calculated in excel and screen shot provided below:

Total amount required at time of retirement will be \$767,241.43..

Now,

Monthly saving she has to make for fullfill her retirement goal is calculated in excel and screen shot provided below:

Monthly Saving in retirement account is \$1,660.55.

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