1. Question 3"Jillian has just started her first job with a $58,000 salary at a company with a 401(k) plan that has a 25% match upto 9% of her gross salary. She figures she can afford to save $2,000/yr for her retirement. Based on our ""plan ofaction for investing"" for retirement, how many dollars of her annual savings should Jillian contribute to her 401(k)each year, assuming there are no contribution limits for IRAS?"Question 4"Gabriella has just started a new job with a $41,000 salary at a company with a 401(k) plan that has a 75% matchup to 6% of her gross salary. She figures she can afford to save $3,000/yr for her retirement. Based on our ""planof action for investing"" for retirement, how many dollars of her annual savings should Gabriella contribute to herRoth IRA each year?"

Annual savings means the highest demand or energy savings that occur in a given year. Annual…

Answered: "Jillian has just started her first job…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter17: Retirement And Estate Planning

Section: Chapter Questions

Problem 4FPC

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3. A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 6 percent on this savings. a. How much will she have accumulated if she retires at age 65?
Sara wants to have $530,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 9%, to ensure that she has $530,000 in 18 years time? OA. $112,357 OB. $202,243 OC. $119,492 O D. $157,300
a. Suppose that between the ages of 22 and 32, you contribute $7000 per year to a 401(k) and your employer contributes $3500 per year on your behalf The interest rate is 9 4% compounded annually What is the value of the 401(k) after 10 years? b. Suppose that after 10 years of working for this firm, you move on to a new job However, you keep your accumulated retirement funds in the 401(k) How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? a. The value of the 4010) after 10 years is S (Do not round until the final answer. Then round to the nearest dollar as needed )
Using the Time Value of Money for Retirement Planning. Carla Lopez deposits $3,400 a year into her retirement account. If these funds have an average earning of 9 percent over the 40 years until her retirement, what will be the value of her retirement account?
1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year beginning at age 35, and receives a “net” 7.00% annualized return, how much money would she accumulate by age 65?
Jeni has decided that she needs to start saving for her retirement. She can afford $100 a month deducted automatically from her paycheck. She deposits it into an account that earns 4.5% interest compounded monthly. How much will she have in her account when she retires 42 years later? A. $ 14,922.70 B.$ 50,400.00 C. $132,213.00 D. $149,226.96
Emily is trying to decide between investing $1,000 or $1,500 at the beginning of each year for the next 40 years into a retirement account yielding 10.78%. After 40 years, how much extra money will Emily have in her IRA if she invests $1,500 annually instead of $1,000 annually? $4,016,726.94 B) $4,052,810.53 $273,849.26 $30,020.95
What does Shelley need to save monthly to make sure she is on track to reach her retirement goal of having $440,000 saved by the time she reaches age 65? She is 48 years old, has been contributing $400 per month and has $180, 000 in her RRSP. Assume she will make an annual return of seven percent. Select one: a. $1275 b. $336 c. $681 d. $1133
b. Jamie wants to have $2,000,000 for her retirement in 25 years. How much should she save annually if she thinks she can earn 8% on her investments?
PART 1 Today Tyrone and Alesha had their first child. All of the grandparents gave them money to help out, which added up to $27,000, and they are going to put this money into an education fund for their child's future. They are nervous about the stock market so they've decided to put their money in a GIC which earns an interest rate of 3.2%, compounded monthly. How much money will they have in the account by their child's 18th birthday? How much interest will be earned PART 2 Alesha convinces Tyrone that because school is both very expensive and very important, they should consider an investment account with a higher rate of return. They explored their options and have selected a relatively conservative index mutual fund that has a performed with a return of 6.5%, compounded monthly. How much will they have saved by their child's 18th birthday with this higher rate of return? How much interest will be earned?
Part A: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years. How much will the face value of the bond that you will be investing? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive? Now let’s extend the problem so that you protect yourself against inflation. Part B: Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement…
Part A: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years. How much will the face value of the bond that you will be investing? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive? Now let’s extend the problem so that you protect yourself against inflation. Part B: Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement…

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