Mrs. A is 23 years old. She plans to retire at age 65. In her retirement,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mrs. A is 23 years old. She plans to retire at age 65. In her retirement, she plans to live off her pension income, at $72,303 a year. Assuming that her pension account can generate a 8% annual interest for her lifetime, and she plans to live to 96. She will withdraw the pension income at the beginning of each year. If she and her employer together make a contribution to her pension account at the end of each month between now (age 23) and the day she retires (age 65), what should be the minimum amount of this combined contribution? (Note that over-rounding may give you a significant rounding error. So round to at least 6 decimal places throughout your calculation to avoid getting the answer wrong.) . (Round to two decimal places. Don't use dollar sign or Answer: $ comma in your answer.) Mrs. A is 23 years old. She plans to retire at age 65. In her retirement, she plans to live off her pension income, at $72,303 a year. Assuming that her pension account can generate a 8% annual interest for her lifetime, and she plans to live to 96. She will withdraw the pension income at the beginning of each year. If she and her employer together make a contribution to her pension account at the end of each month between now (age 23) and the day she retires (age 65), what should be the minimum amount of this combined contribution? (Note that over-rounding may give you a significant rounding error. So round to at least 6 decimal places throughout your calculation to avoid getting the answer wrong.) . (Round to two decimal places. Don't use dollar sign or Answer: $ comma in your answer.)
Expert Answer:
Answer rating: 100% (QA)
To calculate the minimum combined monthly contribution that Mrs A and her employer need to make to h... View the full answer
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
Students also viewed these accounting questions
-
What is an Instructional Coach (IC)? What is the purpose of the Instructional Coach? What are some of the roles of the Instructional Coach? What are the responsibilities of the Instructional Coach?...
-
a. Assume that Carolyn places currently available funds in the savings account. Determine the amount of money Carolyn will have available at retirement once she sells her house if she retires at (1)...
-
Susan Bowen, who just turned 55, is employed as an administrative assistant for the Xcon Corporation, where she has worked for the past 20 years. She is in good health, lives alone, and has two grown...
-
Density is not routinely measured in the atmosphere. Why is this not a problem for atmospheric scientists?
-
Suppose that a population grows according to a logistic model with carrying capacity 6000 and k = 0.0015 per year. (a) Write the logistic differential equation for these data. (b) Draw a direction...
-
Task Description: Report Outline In your group, think of a course that you would love to see added to the curriculum here at Alpha. You will be creating an Outline of the proposal that includes the...
-
Visit the website of Alpha Analytics (www.alpha-analytics.com/home). Briefly describe their data cleaning and validation techniques and how they are applied.
-
BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and...
-
A . Prepare an income statement for the year ended dec . 3 1 2 0 2 3 B . Prepare a retianed earnings statement for the year ended dec. 3 1 2 0 2 3 C . Prepare the stock holders equity section of the...
-
Figure 2 shows the support structure for a suspended apparatus in a laboratory. The apparatus is hung from the 1/4" A36 plate that is welded to the 3/8" plate using E70XX electrodes. Assuming that...
-
Victor is more than a 2% owner of an S corporation and an employee. The S corporation pays for health insurance. How would this be treated by the S corporation and by the victor?
-
What is the failure rate of all new businesses? What is the failure rate of all new franchises? What inferences can you make from these numbers?
-
Why is it necessary to make the aggregate demand and aggregate supply model dynamic? What are the consequences of this modification?
-
Choose three major inventions that have led to successful products. Who were the inventors? How did they invent the technology? Why do you believe they were the first to invent this technology?
-
Which factor shifts both the AD curve and SRAS curve? Provide an explanation for why this factor has this effect.
-
In the late 1990s, the city of New York confronted growing concerns surrounding the mosquito-borne West Nile virus by implementing an aerial and ground spraying program. The program consisted of...
-
The given equation of the curve c(t)=(t.t-4t) Here, x(t)=t and y(t)=t* - 4t
-
Privitera and Freeman (2012) constructed a scale to measure or estimate the daily fat intake of participants; the scale was called the estimated daily intake scale for fat (EDIS-F). To validate the...
-
You just took out a variable-interest-rate consumer loan set at 3 percent over prime. After 1 year, your rate jumps to 4 percent over prime. Treasury bills are currently paying 2 percent. What is the...
-
The Gizmo, Inc has just announced year-end results as follows: Value of company assets.............................................$12,500,000 Value of company...
-
Explain whether the following consumer goods are classified as good or bad debt. Explain your rationale. a. Mortgage b. Home equity line of credit to build a new patio c. Student loan d. Gap credit...
-
A burst of compressed air pushes a pellet out of a blowpipe. The force exerted by the air on the pellet is given by \(F(t)=F_{0} e^{-t / \tau}\), where \(\tau\) is called a time constant because it...
-
Thrust is the force that pushes a rocket forward. It is a force exerted on the rocket as the engine expels hot gases from the rear of the rocket. For most rockets, thrust is variable rather than...
-
Assume you want to use random tests on an FIR filter program. How would you know when the program under test is executing correctly?
Study smarter with the SolutionInn App