Silvia is 20 years old and has just started working. She will work until age 67 and live to age 87. Her current annual salary is £50,000. This salary will stay constant until her retirement (age 67). During retirement she will receive a constant pension income of £30,000. She has £350,000 in financial wealth. She can borrow and lend at an annual risk free rate of 2%. a. If she wishes to hold consumption constant over her lifetime, how much can she afford every year?
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- Maria, a 25-year-old teacher, wants to start saving for her retirement. Maria wants a comfortable retirement, so she needs to have one million dollars in her saving account, which pays 4.8% annual interest rate, when she reaches 65 years of age. ) How much should Maria deposit into her saving account monthly now? Round your answer to the nearest cent. a. ) If Maria wants the one million dollars in her saving account to last 20 years into her retirement, how much could she withdraw from the saving account monthly for retirement? You can assume the saving account will pay the same 4.8% annual interest rate. Round your answver b. to the nearest cent. If Maria increases her monthly deposit in part (a) by $200, how much will be in her savıng account if she wants to retire at 60 years of age? Round your answer to the nearest cent. C.Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?John, a 25-year-old teacher, wants to start saving for his retirement. John wants a comfortableretirement, so he needs to have one million dollars in his saving account, which pays 2.4% annualinterest rate, when he reaches 67 years of age.a. How much should John deposit into his saving account monthly now? Round your answer to thenearest cent.b. If John wants the one million dollars in his saving account to last him 20 years into hisretirement, how much could he withdraw from the saving account monthly? You can assume thesaving account will pay the same 2.4% annual interest rate. Round your answer to the nearestcent.c. If John increases his monthly deposit in part (a) by $200, how much will be in his saving accountif he wants to retire at 60 years of age? Round your answer to the nearest cent.
- Carla Lopez deposits $2,500 a year into her retirement account. If these funds have an average earnings of 5 percent over the 40 hears until her retirement, what will be the value of her retirement account?Sara Sharp, a 30-year-old insurance broker, decided to start a retirement plan. She figures that her income for the next 20 years will be sufficient to deposit $300 at the end of each month into her retirement plan. She will then let the money sit for another 10 years until she is 60 years old. If Sarah’s retirement plan earns 5.75% compounded monthly, what amount will she have when she turns 60?Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?
- Amy Johnson wants to retire on $75,000 per year for her life expectancy of 20 years after she retires. She estimates that she will be able to earn an interest rate of 10.1%, compounded annually, throughout her lifetime. To reach her retirement goal, Amy will make annual contributions to her account for the next 30 years. One year after making her last deposit, she will receive her first retirement check. How large must her yearly contribution be? (Solve with Presents Values with Annuities or Loans and Amortization)Andrea, a self-employed individual, wishes to accumulate a retirement fund of $250,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 4.5%/year compounded monthly, to reach her goal upon retirement 20 years from now? (Round your answer to the nearest cent.Maria Anguiano's current salary is $58,000 per year, and she is planning to retire 20 years from now. She anticipates that her annual salary will increase by $3,200 each year. (That is, in the first year she will earn $58,000, in the second year $61,200, in the third year $64,400, and so forth.) She plans to deposit 7% of her yearly salary into a retirement fund that earns 9% interest compounded daily. What will be the amount accumulated at the time of her retirement? Assume 365 days in a year. The effective annual interest rate is %. (Round to four decimal places.)
- Andrea, a self-employed individual, wishes to accumulate a retirement fund of $250,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 2.5% / year compounded monthly, to reach her goal upon retirement 25 years from now? (Round your answer to the nearest cent.) $702.26 xLin Shan is about to retire and is exploring the possibility of investing a lump sum in an annuity so that she gets 50% of her last drawn salary at the end of every month for 15 years. She estimates her last-drawn salary to be ¥60,000. The quotation she obtained from Ping Tan insurance requires her to invest a lump sum of ¥1 million. Calculate the return that Lin Shan is earning on her annuity.Danny is saving towards his vacation. He has determined that the total cost including airfare and accommodation will amount to $5,000. a. If he sets aside $400 per month from his salary, starting from the end of this month, in an account that pays interest of 9% per annum, will he have enough to make the trip at the end of the year? b. How much more will he have in the account if he made his first deposit of $400 today? What kind of annuity is this?