Question: the answer to #5 is 80620.40. please answer 6 and 7. Thank You! Question 6 (1 point) Calculate the amount you need at age 65

the answer to #5 is 80620.40. please answer 6 and 7. Thank You!

Question 6 (1 point) Calculate the amount you need at age 65 to retire to receive 80% of Age 65 Salary (what we find for Question 5) at the end of each year for 20 years. You will invest this amount at 4% interest and leave no inheritance. (At Age 65, how much money do you need to receive 80% of your salary for the next 20 years starting at age 66?) Question 7 (1 point) How much do you need to save per year (at the end of each year) in an investment earning 7% per year now to reach the amount in Question 6 by age 65? Assume you have no money now in the investment

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

You wish to sell short 100 shares of XYZ Corporation stock. If the last two transactions were at $34.10 followed by $34. 15, you only can sell short on the next transaction at a price of a. 34.10 or...

Other resources: Due - Sun 1 Nov. 11.59pm Marina, a widow was born 1 Aug 1955 and is planning on retirement in early 2023 when she thinks she will be eligible for the Aged Pension. She has one...

Answer the questions below Contributions to a pension scheme by employees are made at a rate of 5% of salary when aged under 35, 6% between ages 35 and 45, and 75% when aged 45 or over. Calculate the...

PLEASE HELP ME WITH 2A, 4, 5, 6, AND 7. THANK YOU Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company's accounting intern was asked...

Please show work on how to calculate present value! You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $230,000 per year...

Remember: This exam is open book and open note. If you have any questions or concerns, please let me know via email or discussion board. All questions are worth 1 point Question 1: How can the...

You are a financial advisor, and you have several investment appointments today with different clients. Some of the appointments involve clients looking to invest for different goals, some have...

Please help! no handwritten answers & please show whatever work possible, thank you!! Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until...

The Answer Schedule shows the points per question / answer Points available for each answer are all or nothing - must be correct answer AND in correct format Rounding of your answers should take...

please help me with these. Thank you Question 5 (1 point) At pH 7, the side chain hydroxyl group of a free tyrosine amino acid has _____, allowing it to ________ a hydrogen bond _________ of the...

How do you fill this in? MULTUOLIUS 10 Following are selected accounting transactions for the month of December along with certain accounting adjustments necessary for ACME Distribution, Inc. as of...

2-3ctq Aid- 232931 B- 744033 ri 3. Hydrophilic molecules do not have to contain polar covalent bonds. What other bonds could generate a hydrophilic substance?

The Bakery is considering a new project it considers to be a little riskier than its current operations. Thus, management has decided to add an additional 1.5 percent to the company's overall cost of...

Small business lending by banks, in proportion of all loans is:

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...