A time line might be helpful to you, each part of the problem is related to...

 

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A time line might be helpful to you, each part of the problem is related to each other; you could round up all number to two digits, for example: $345.88; you must show all steps. Jim just turned 25 years old and plans to retire at 65. His retirement plan at work guarantees him $3,000 per year at the end of each year for the rest of his life after he retired. However, Jim goals are to have $60,000 at the beginning of each year of retirement and at 75 to take trip around the world with his wife; the trip total cost $275,000 and the money has to be paid at the beginning of the year. Jim will be retired for 25 years. The only investment opportunity Jim has from age 25 to 65 is investment that pay annual rate of return of 6% compounded quarterly. However, the only investment opportunity Jim has from age 65 to 90 is investment that pay annual rate of return of 8% compounded annually. < a) What is the amount of money that Jim requires at age 65 so he can achieve his retirement goals? (Show all steps). < b) How much must Jim deposit at the end of each three months, to be able to achieve his retirement goals? (Show all steps). < c) Jim will inherit a large sum of money, $50,000, at 55; Jim is planning to use the $50,000 for his retirement. In addition, Jim plans to pay for his daughter college education. His daughter will start attending college at 45 and require $5,000 at the beginning of each three months for five years to finish her college education. How much must Jim deposit at the end of each three months to be able to achieve his retirement goals and pay for his daughter education? (Show all steps). A time line might be helpful to you, each part of the problem is related to each other; you could round up all number to two digits, for example: $345.88; you must show all steps. Jim just turned 25 years old and plans to retire at 65. His retirement plan at work guarantees him $3,000 per year at the end of each year for the rest of his life after he retired. However, Jim goals are to have $60,000 at the beginning of each year of retirement and at 75 to take trip around the world with his wife; the trip total cost $275,000 and the money has to be paid at the beginning of the year. Jim will be retired for 25 years. The only investment opportunity Jim has from age 25 to 65 is investment that pay annual rate of return of 6% compounded quarterly. However, the only investment opportunity Jim has from age 65 to 90 is investment that pay annual rate of return of 8% compounded annually. < a) What is the amount of money that Jim requires at age 65 so he can achieve his retirement goals? (Show all steps). < b) How much must Jim deposit at the end of each three months, to be able to achieve his retirement goals? (Show all steps). < c) Jim will inherit a large sum of money, $50,000, at 55; Jim is planning to use the $50,000 for his retirement. In addition, Jim plans to pay for his daughter college education. His daughter will start attending college at 45 and require $5,000 at the beginning of each three months for five years to finish her college education. How much must Jim deposit at the end of each three months to be able to achieve his retirement goals and pay for his daughter education? (Show all steps).

Answer rating: 100% (QA)

Lets break down each part of the problem a Amount required at age 65 Jim wants to have 60000 at the beginning of each year of retirement for 25 years plus the 275000 for the trip at age 75 We need to ... View the full answer