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Mrs. Bautista is a chief financial officer of TCB Catering Services. He proposed to thecompany that they offer a retirement plan for a company employee who is now 55years of age. The plan will provide an
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- OHaganBooks.com has just introduced a retirement package for its employees. Under the annuity plan operated by Sleepy Hollow, the monthly contribution by the company on behalf of each employee is $700. Each employee can then supplement that amount through payroll deductions. The current rate of return of Sleepy Hollow's retirement fund is 7.1%. Jane Callahan, the website developer at OHaganBooks.com, plans to retire in 10 years. She contributes $1,000 per month to the plan (in addition to the company contribution of $700). Currently, there is $40,000 in her retirement annuity. How much (to the nearest dollar) will it be worth when she retires? (Assume interest is compounded monthly.) $Many companies offer retirement plans wherein the company matches the contributions made by the employee up to 6% of the employee’s salary. An engineer planning for her retirement expects to invest the maximum of 6% each year. Her salary in year one is $60,000 and is expected to increase by 4% each year. Including the employer’s contributions, how much will she have in her account at the end of 20 years if interest accrues at 7% per year?Claire Fitch is planning to begin an individual retirement program in which she will invest $1,500 at the end of each year. Fitch plans to retire after making 30 annual investments in the program earning a return of 10%. What is the value of the program on the date of the last payment (30 years from the present)?
- Jim wants to deposit an amount anually to meet his retirement needs. Assume that he will deposit a fixed annual amount for the next 20 years into a retirement savings account, starting one year from now. Mark has a son who will be attending college and plans to make 5 withdrawals (starting one year after making his final deposit into the retirement account) of $35,000 each to pay for his annual tuition for the following 5 years. Commercial Banks will be paying 6 percent on such retirement accounts for the next 25 years. How much should Mark place in the account annually to cover his retirement needs.Your parents are planning to save for their retirement. A retirement plan is a financial arrangement made by an individual, employees/employers, insurance companies, and other institutions to replace employment income upon retirement. They target to accumulate P5000,000 in 10 years. To do this, they want to set aside a portion of their salaries and contribute monthly for their retirement funds. How much should they contribute per month if they have a chance to invest in an annuity that earns 5% compounded quarterly.Suppose your aunt has worked for 40 years and has accumulated a "nest-egg" of $1,000,000. She wishes to begin receiving an annual payment beginning next year, and continuing for another 20 years. If a pension plan will guarantee her an annual interest rate of at least 5% effective, what is her payment? Please show procedure and formulas used. Thanks
- Mr. A made a 20-year retirement plan and according to his plan, he aimed to withdraw 6000 TL at the end of the first year and planned to increase the amount withdrawn by 800 TL at the end of the following year. Since he has agreed with a bank that pays 9% compounded annual interest to implement this plan, how much money should Mr. A have to deposit in the bank at the start of the plan?Suppose your mother has worked for 40 years and has accumulated $1,000,000. She wishes to begin receiving an annual payment beginning next year, and continuing for another 20 years. If a pension plan will guarantee her an annual interest rate of at least 5% effective, what is her payment?A church wants to provide a retirement plan for the senior pastor who is aged 55 now. The plan will provide the pastor with an annuity immediate of GH¢7,000 every year for 15years upon his retirement at the age of 65 years. The Church is funding this plan with an annuity-due of 10years. If the rate of effective interest is 5℅ what is the amount of instalment the church should pay?
- Claire Fitch is planning to begin an individual retirement program in which she will Invest $2,800 at the end of each year. Fitch plans to retire after making 30 annual Investments in the program earning a return of 8%. What is the value of the program on the date of the last payment (30 years from the present)? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "FV of an Ordinary Annulty" to 4 decimal places and final answer to the nearest whole dollar.) Periodic Cash Flow x f (FV of an Ordinary Annuity) Future ValueA civil engineer planning for her retirement places 9% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $160,000 and she expects her salary to increase by 5% each year, what will be the future worth of her retirement fund after 16 years provided it earns 8% per year? The future worth of her retirement fund will be $ 481855.8Nicola Martin also just started working with the NCB as a sales representative and is just trying to catch up on having money for retirement. NCB offers her a pension plan with an annuity that is guaranteed to earn 11% interest compounded Semi-annually. She plans to work for the same 12 years before retiring and would then like to be able to draw an income of $110,000 per annum for 16 years. How much must be deposited per annum into her retirement fund to accomplish this? DO NOT USE EXCEL SHOW ALL WORKING