Finance

posted by .

Your client is 40 years old and she wants to begin saving for retirement, with the first payment to come one year from now. She can save 5000 per year; and you advise her to invest it in the stock market, Which you expect to provide and average 9% in the future.

A) If she follows your advice, how much money will she have at 65?

B) How much will she have at 70?

C) She expect to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age?

  • Finance -

    Suppose that you save for retirement by contributing the same amount each month from your 23rd birthday until your 65th birthday, in an account that pays a steady 4% annual interest compounded monthly.

    (a) How much will be in your fund at age 65 if you save $100 a month?

  • Finance -

    kijij

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    You are now 30 years old. You plan to retire in 30 years, and expect to live for 30 years after retirement, that is, until you are 90. You want a fixed retirement income that has the same purchasing power at the time you retire as …
  2. Finance

    Your client is 40 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $7,500 per year, and you advise her to invest it in securities which you expect to provide an …
  3. finance

    Suppose that you are 25 years old and you have two options to save money for retirement. Plan A allows you to save $3000 per year for the next 20 years, then sit for 20 years and finally draw on it for the following 30 years. Plan …
  4. finance

    Mrs. Kay who is 24 years old plans to retire at the age of 60. Mrs. Kay would like to be able to withdraw $120,000 per year from her retirement account for 40 years after retirement beginning a year after her retirement. She already …
  5. math - interest rates/annuity

    Plan to save $5000 per year for retirement with first investment made 1 year from now. Plan to earn 10% per year on investments. Plan to retire in 43 years, immediately after making last $5000 investment. a) if, instead, decide to …
  6. programming logic and design

    I need help writing pseudocode for this problem: Design a retirement planning calculator for skulling financial services • Allow a user enter a number of working years remaining in the user career and the annual amount of money the …
  7. Math: Finance

    Need help solving these finance questions?
  8. business finance

    Your client is 40 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save RM5,000 per year, and you advise her to invest it in the stock market, which you expect to provide …
  9. Finance

    You just turned 50 years old and are planning to retire in 15 years. You have decided you would like to receive an annuity rather than managing a lump sum. If you invest $12,500 at the end of each of the next 10 years, what will your …
  10. finance

    Starting a year from now and making 10 yearly payments, Pierre would like to put into a retirement account enough money so that, starting 11 years from now, he can withdraw $30000 per year until he dies. Pierre is confident that he …

More Similar Questions