![huangjianhe135](/avatars/44983.jpg)
huangjianhe135
28.05.2021 •
Business
This is a classic retirement problem. A time line will help in solving it. Your friend is celebrating her 40th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $132,000 from her savings account on each birthday for 20 years following her retirement; the first withdrawal will be on her 66th birthday. Your friend intends to invest her money in the local credit union, which offers 7.7 percent interest per year. She wants to make equal annual payments on each birthday into the account established at the credit union for her retirement fund.
a. If she starts making these deposits on her 41st birthday and continues to make deposits until she is 65 (the last deposit will be on her 65th birthday), what amount must she deposit annually to be able to make the desired withdrawals at retirement?
b. Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lump sum payment on her 40th birthday to cover her retirement needs. What amount does she have to deposit?
c. Suppose your friend’s employer will contribute $4,500 to the account every year as part of the company’s profit-sharing plan. In addition, your friend expects a $185,000 distribution from a family trust fund on her 55th birthday, which she will also put into the retirement account. What amount must she deposit annually now to be able to make the desired withdrawals at retirement?
Solved
Show answers
More tips
- L Leisure and Entertainment When will Maslenitsa start?...
- F Food and Cooking Discovering the Mysterious Fruit of Feijoa...
- B Business and Finance How to Open an Online Store? A Detailed Guide for Beginners...
- W Work and Career How to Write a Resume That Catches the Employer s Attention?...
- C Computers and Internet Е-head: How it Simplifies Life for Users?...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
- L Leisure and Entertainment How to Make a Paper Boat in Simple Steps...
- T Travel and tourism Maldives Adventures: What is the Best Season to Visit the Luxurious Beaches?...
Answers on questions: Business
- B Business Which of the following actions is a part of information management: a. creating technology b. observing competitors c. creating data d. disseminating information...
- B Business In general, the ex-ante risk-return tradeoff a. slopes upward. b. slopes downward c. is flat d. is impossible to determine....
- B Business Which is more independent, the federal reserve or the european central bank? why? a. the federal reserve systemlong dash—it must be more independent since the european...
- B Business A stock has a beta of 1.12, the expected return on the market is 10.6 percent, and the risk-free rate is 4.65 percent. What must the expected return on this stock...
- B Business Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply. Paying higher wages...
- B Business Reese Corp. s trial balance reflected the following account balances at December 31, 2015: Accounts receivable (net) $24,000 Trading securities 6,000 Accumulated...
- B Business Soft Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay. Soft tells Stuffy on April 15 that delivery...
- B Business Identify the type of marketing strategy based on the given scenario. A cruise ship company decides to increase its sales by offering specialty cruises for food,...
- B Business Under the terms of the agreement, Shauna will receive the $200,000 cash in exchange for her 50 percent interest in WFI. Shauna s tax basis in her WFI stock is $50,000....
- B Business Classify each of the tasks according to whether or not they are tasks of the Federal Reserve. Tasks of the Federal Reserve Not tasks of the Federal Reserve...
Ответ:
This is not the right place to post this
Explanation:
Someone could report u for this:):0