Mathematics College

Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be
retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into
a retirement savings account that will earn 12% compounded monthly. Then one year after
making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after
he passes away (assuming he lives 25 years after retirement) he wishes to leave in the fund a sum
worth $1,000,000 to his nephew who is under his charge. The fund will continue to earn 12%
compounded monthly. How much should the monthly deposits be for his retirement plan?

Answers

Answer 1

Answer:

Step-by-step explanation:

Today's Age = 30

Retirement Age = 64

Total Monthly Deposits = ( 64 - 30 ) * 12 = 408

In case of 12% Compounded Monthly , Interest Rate per month = ( 12% / 12 ) = 1%

Effective Interest Rate per year = ( 1 + 0.12/12 )12 - 1 = 1.1268 - 1 = 0.1268 = 12.68%

Present value of Annual 25 Years withdrawal of $100,000 at time of Retirement = $100,000 * PVAF ( 12.68% , 25 )

= $100,000 * 7.4864

= $748,642.20

Present Value of Money for nephew at time of Retirement = $1,000,000 * PVF ( 12.68% , 25 )

= $1,000,000 * 0.050535

= $50,534.52

Now the Present Value of total Amount Required at time of Retirement = $748,642.20 + $50,534.52

= $799,176.70

Now the monthly deposit be X

= X * FVAF ( 408 , 1% ) = $799,176.70

= X * 5752.85 = $799,176.70

X = $138.918

Therefore Monthly Deposit = $138.92

Related Questions

Andre hit 46 balls at practice. He hit no fewer than 20 less than double the number of hits Jason had. Which inequality represents the situation if j represents the number of hits Jason had?
46 minus 20 less-than 2 j
2 j minus 20 less-than-or-equal-to 46
46 minus 20 less-than-or-equal-to 2 j
2 j minus 20 greater-than-or-equal-to 46

Answers

Answer:

  2j -20 ≤ 46

Step-by-step explanation:

"20 less than double the number Jason [hit]" can be represented by 2j-20.

We are told that 46 is no fewer than this value, so it is greater than or equal to this value:

  46 ≥ 2j -20

  2j -20 ≤ 46 . . . . . swapping sides to match answer choices

Answer:

2j -20 ≤ 46

Step-by-step explanation:

Simplify (-2x^3)2•y•y^9

Answers

Answer: -4x^3 y^10
-2x^3 • 2 = 4 (because 2•2 is 4, they don’t share the same variable so you just multiply the base)
y^9 • y^1 (9+1=10)

-4x^3 y^10

Simplify (-2x^3)^2 •y•y^9       Answer 4x^6y^10

7.6 cm
3.7 cm
Find the area of the parallelogram.

Answers

Answer:

7cm²

Step-by-step explanation:

What function has zeros at x=10 and x=2

Answers

Answer:

  f(x) = x^2 -12x +20

Step-by-step explanation:

There are an infinite number of functions with zeros at those values of x. One simple polynomial function with those zeros is ...

  f(x) = (x -10)(x -2) . . . . . each zero contributes a factor

  f(x) = x^2 -12x +20

Find the area of the shape

Answers

I think the answer will be 78.5

568,924,126 each digit stands for what

Answers

Answer:

500,000,00060,000,0008,000,000900,00020,0004,000100206

Step-by-step explanation:

To find what a digit stands for, make all the other digits zero.

This is substantially what we do when we write the number in "expanded form."

  568,924,126

  = 500,000,000 +60,000,000 +8,000,000 +900,000 +20,000 +4,000 ...

     ... +100 +20 +6

The list of numbers in the sum is the list of numbers the digits stand for.

Tate is paid $17.35 per hour with time and a half overtime. What will his gross pay period in which he worked 35 hours one week and 44 hours next week for a total 79 hours?

Answers

Answer:

The new rule has a higher salary level for exemption from overtime, at $684 a week. This means that lower-pay exempt employees may qualify for overtime.

Step-by-step explanation: this is your answer plz rate e the most brainlest

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