Reference no: EM133110591
4a. William North has just inherited $1,311,000 which he would like to use as part of his retirement nest egg. He invested the funds at a 7.51 percent annual rate compounded annually. William will reach age sixty-five in 19 years. Now he would like to know how much he could withdraw from the fund in equal installments at the end of each year from the year he reaches age 65 until he reaches age 70½, the year he must start withdrawing funds from his individual retirement account (IRA). William assumes the funds will continue to earn at a 7.51 percent annual rate. In other words, William would like to know the annual year-end payment from a six-year annuity (from age 65 to the year he will be 70½), earning 7.51 percent annually.
Round the answer to two decimal places.
4b. Bob Stevens has just inherited $692,860 which he would like to use as part of his retirement nest egg. He invested the funds at a 4.95 percent annual rate compounded annually. Bob will reach age sixty-five in 15 years. Now he would like to know how much he could withdraw from the fund in equal installments at the end of each year from the year he reaches age 65 until he reaches age 70½, the year he must start withdrawing funds from his individual retirement account (IRA). Bob assumes the funds will continue to earn at a 4.95 percent annual rate. In other words, Bob would like to know the annual year-end payment from a six-year annuity (from age 65 to the year he will be 70½), earning 4.95 percent annually.
Round the answer to two decimal places.
4c. William North has just inherited $751,000 which he would like to use as part of his retirement nest egg. He invested the funds at a 5.32 percent annual rate compounded annually. William will reach age sixty in 17 years and will retire early. Now he would like to know how much he could withdraw from the fund in equal installments at the end of each year from the year he reaches age 60 until he reaches age 70½, the year he must start withdrawing funds from his individual retirement account (IRA). William assumes the funds will continue to earn at a 5.32 percent annual rate. In other words, William would like to know the annual year-end payment from an eleven-year annuity (from age 60 to the year he will be 70½), earning 5.32 percent annually.
Round the answer to two decimal places.
4d. Scott accumulated $1,278,000 as his retirement assets. He has determined that he will need $224,000 per year from the retirement assets to handle his living needs until he reaches age 70½. Assuming his assets will continue to earn 8.7 percent annually, at what age can Scott afford to retire? (Scott has already decided not to touch his IRA funds until the latest possible date, believing he can cover his living costs with the retirement assets until that time. He is even willing to adjust his retirement date by a year or so if need be.)
Please calculate the answer to two decimal places. (Don't round the answer to the whole number).
Why does the question show that it is answered but it is not?
|
Illustrate the change in firm value
: -M&M Theorem argue that in a world with no taxes, capital structure does not matter. Why is this the case? How will their argument change in the real world? Dis
|
|
Calculate the operating breakeven
: Calculate the Operating Breakeven based on BDT sales in total units. Also calculate degree of operating leverage by considering the total 200 million sales unit
|
|
Generation skipping transfer tax
: 1. Fred and Adele have a sizable estate ($4.5 million). They desire a stream of income to supplement their retirement income while also qualifying them for a ch
|
|
Prepare journal entries to record the transactions
: Toy Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the transactions
|
|
Calculate the answer to two decimal places
: 4a. William North has just inherited $1,311,000 which he would like to use as part of his retirement nest egg. He invested the funds at a 7.51 percent annual ra
|
|
Number of foreign banks in the philippines
: Why do you think it is important to have a limited number of foreign banks in the Philippines? Please create a scenario to justify your answer and explain.
|
|
Limited number of foreign banks in the philippines
: Why do you think it is important to have a limited number of foreign banks in the Philippines? Please create a scenario to justify your answer and explain.
|
|
Issuing a qualified report
: A news story reports that your employer's auditor is issuing a qualified report because of the use of questionable accounting practices.
|
|
Prepare a RACM for a General IT Control
: Prepare a RACM for a General IT Control. Be sure the six elements are consistent, i.e. do not mix items from different business processes and objectives
|