Irene plans to retire on December 31st, 2019. She has been preparing to retire by making annual deposits, starting on December 31st, 1979, of $2100 into an account that pays an effective rate of interest of 8.2%. She has continued this practice every year through December 31st, 2000. Her goal is to have $1.5 million saved up at the time of her retirement. How large should her annual deposits be (from December 31st, 2001 until December 31st, 2019) so that she can reach her goal? Payment = $
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- Minnie owns a qualified annuity that cost 78,000. The annuity is to pay Minnie 650 per month for life after she reaches age 65. Minnie turns 65 on September 28, 2019, and receives her first payment on November 1, 2019. a. How much gross income does Minnie have from the annuity payments she receives in 2019? b. Shortly after receiving her payment on October 1, 2034, Minnie is killed in an automobile accident. How does the executor of Minnies estate account for the annuity on her return for the year 2034? c. Assume that the accident does not occur until November 1, 2043. How does the executor of Minnies estate account for the annuity on her 2043 return?Irene plans to retire on December 31st, 2019. She has been preparing to retire by making annual deposits, starting on December 31st, 1979, of $2450 into an account that pays an effective rate of interest of 9.1%. She has continued this practice every year through December 31st, 2000. Her goal is to have $1.5 million saved up at the time of her retirement. How large should her annual deposits be (from December 31st, 2001 until December 31st, 2019) so that she can reach her goal? Payment = $68573.5Irene plans to retire on January 1, 2020. She has been proparing to retire by making annual deposits, starting on January 1, 1980, of 2400 dollars into an account that pays an effective rate of interest of 9.8 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.4 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal? Answer = dollars.
- The answer above is NOT correct. Irene plans to retire on December 31st, 2019. She has been preparing to retire by making annual deposits, starting on December 31st, 1979, of $2100 into an account that pays an effective rate of interest of 9.8%. She has continued this practice every year through December 31st, 2000. Her goal is to have $1.5 million saved up at the time of her retirement. How large should her annual deposits be (from December 31st, 2001 until December 31st, 2019) so that she can reach her goal? Answer = $ 27291 %3DSix years ago, Gladys opened a retirement account with an initial deposit of $14,000. Each year since then, she has added $2,000 to the account at the end of each year. She plans on contributing for the next 25 years. How would you determine the future value of her account at retirement? O Future value of a lump sum and future value of an annuity. O Future value of an annuity and the present value of a lump sum. O Future value of a lump sum and present value of an annuity. O Future value of an annuity.As soon as she graduated from college, Kay began planning for her retirement. Her plans were to deposit $500 semiannually into an IRA (a retirement fund) beginning six months after graduation and continuing until the day she retired, which she expected to be 30 years later. Today is the day Kay retires. She just made the last $500 deposit into her retirement fund, and now she wants to know how much she has accumulated for her retirement. The fund earned 10 percent compounded semiannually since it was established. a. Compute the balance of the retirement fund assuming all the payments were made on time. b. Although Kay was able to make all of the $500 deposits she planned, 10 years ago she had to withdraw $10,000 from the fund to pay some medical bills incurred by her mother. Compute the balance in the retirement fund based on this information.
- Kate is 28 years old today and is beginning to plan for her retirement . She wants to set aside an equalamount at the end of each of the next 37 years so that she can retire at age 65 . She expects to live to the maximum ageof 90 and wants to be able to withdraw $250,000 per year for 25 years from the account on her 66th through 90th birthday. The account is expected to earn 5% annually. Determine the size of the annual deposit by kateAmy is now (year 0) 25 years old and planning for her retirement at age 65. She would like to have $2 million for her retirement by then. She will make her first deposit in her retirement savings account next year ( year 1) and continue until her last deposit at age 65 ( year 40). All deposits are made on the last day of the year. Amy expects her income to increase at an annual rate of 3.03% (nominal) and thus will increase her savings at the same rate. Her savings will earn an annual return of 6.06% (nominal). Use the above information to answer questions (A)-(C). What should be Amy's first deposit to achieve her goal for the retirement savings account?Sandra Jones intends to retire in 20 years at the age of 65. As yet, she has not provided for retirement income, and she wants to set up a periodic savings plan to do this. She has the opportunity to make equal annual payments into a savings account that pays 4 percent interest per year. How large must her payments be to ensure that after retirement, she will be able to draw $30,000 per year from this account until she is 80? \
- Leila is saving for her retirement by making deposits of $22,000 on each birthday into a savings account starting on her 51st birthday and ending on her 64th birthday (inclusive). Given an effective annual rate of interest of 3.3%, how much will she accumulate by her 65th birthday?Amy is now (year 0) 25 years old and planning for her retirement at age 65. She would like to have $2 million for her retirement by then. She will make her first deposit in her retirement savings account next year (year 1) and continue until her last deposit at age 65 (year 40). All deposits are made on the last day of the year. Amy expects her income to increase at an annual rate of 2.82% (nominal) and thus will increase her savings at the same rate. Her savings will earn an annual return of 5.45% (nominal). A)What should be Amy's first deposit to achieve her goal for the retirement savings account? Ans 9902.502787 B)Suppose that inflation is 1.71% per year. What would be the real value of Amy's retirement savings account balance when she retires (year 40)?Ans 1015041.55707 C)Suppose that inflation is 2.82% per year (rather than 1.71% as noted above), and there is no change in Amy's income growth and the return on her savings. What would Amy's first deposit (in nominal terms)…Amy is now (year 0) 25 years old and planning for her retirement at age 65. She would like to have $2 million for her retirement by then. She will make her first deposit in her retirement savings account next year (year 1) and continue until her last deposit at age 65 (year 40). All deposits are made on the last day of the year. Amy expects her income to increase at an annual rate of 3.13% (nominal) and thus will increase her savings at the same rate. Her savings will earn an annual return of 6.93% (nominal). Use the above information to answer questions (A) – (C). Amy's first deposit to achieve her goal for the retirement savings account? answer : 6812.038768 Suppose that inflation is 1.67% per year. a)What would be the real value of Amy's retirement savings account balance when she retires (year 40)?b)Suppose that inflation is 3.13% per year (rather than 1.67% as noted above), and there is no change in Amy's income growth and the return on her savings. What would Amy's first…