Question

1.Since Tanya Martin retired, she has used income from her investment in the Alger Mid Cap growth fund to supplement her other retirement income. During one three-month period, the fund grew by $13,000. If she withdraws 65 percent of the growth, how much will she receive?

Withdrawal Amount:

Dave bought a rental property for $570,000 cash. One year later, he sold it for $550,000. What was the return on his $570,000 investment? (Negative amount should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places.)

Return Investment: %

2. Assume your home is assessed at $200,000. You have a $165,000 loan for 15 years at 8 percent. Your property tax rate is 1.3 percent of the assessed value. In year one, you would pay $13,200 in mortgage interest and $2,600 in property tax (1.3 percent on $200,000 assessed value).

What is the total deduction you can take on your federal income tax return?

Federal income tax deduction amount:

3.Jamie Lee and Ross, now 57 and still very active, have plenty of time on their hands now that the triplets are away at college. They both realized that time has just flown by; over twenty-four years have passed since they married!

Looking back over the past years, they realized that they have worked hard in their careers, Jamie Lee as the proprietor of a cupcake café and Ross, self-employed as a web-page designer. They have enjoyed raising their family and strived to be financially sound as they are looking to retirement that is just around the corner. They saved regularly and invested wisely over the years. They rebounded nicely from the economic crisis over the past few years, as they watched their investments closely and adjusted their strategies when they felt it necessary. They purchase vehicles with cash and do not carry credit card balances, choosing instead to use them for convenience only. The triplets are pursuing their master’s degrees and have tuition covered through work/study programs at the university.

Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 65 and purchasing a home at the beach!

They are reviewing their financial situation to ensure they will be ready for retirement. They anticipate being able to live comfortably with 80% of their current expenses. The rate of return on their investments until they retire is 3%. They expect this percentage to drop to 2% after retirement. Use this information, along with Exhibit 1-A, Exhibit 1-B, and the information provided below to determine the annual deposit amount Jamie Lee and Ross will need to make until they retire in order to make up the shortfall between their estimated expenses and income needed during retirement. Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories.

Current Expense Amounts (Jamie Lee and Ross Combined)

Fixed expenses: $4,600/month

Variable expenses: $2,500/month

Estimated Income Amounts (Jamie Lee and Ross Combined)

Social Security: $2,650/month

Current IRA balance: $84,000

Estimated IRA withdrawal: $300/month

Other investments: $34,400/year

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Question 3 of 3 Total 3 of 3

Estimated Annual Retirement Living Expenses
Estimated annual living expenses if retiring today
Number of years until retirement
Expected annual rate of return before retirement
Future value (use Exhibit 1-A)			x
Projected annual retirement living expenses, adjusted for inflation			(A)
(Round your final answer to nearest whole number.)
Estimated Annual Income at Retirement
Social Security income
Company pension, personal retirement account income
Investment and other income
Total retirement income			(B)
(Round your final answer to nearest whole number.)
Needed investment fund after retirement (A - B)			(C)
(Round your final answer to nearest whole number.)
Number of years until retirement
Expected annual rate of return before retirement
Future value for a series of deposits (use Exhibit 1-B)			(D)
Annual deposit to achieve needed investment fund (C/D)
(Round your final answer to two decimal places.)

Answer 1

You have asked multiple unrelated questions in a single post. I have addressed the first three of them. Please post the balance questions separately.

1.Since Tanya Martin retired, she has used income from her investment in the Alger Mid Cap growth fund to supplement her other retirement income. During one three-month period, the fund grew by $13,000. If she withdraws 65 percent of the growth, how much will she receive?

Withdrawal Amount: = 65% x Growth = 65% x 13,000 = $ 8,450.00

Dave bought a rental property for $570,000 cash. One year later, he sold it for $550,000. What was the return on his $570,000 investment? (Negative amount should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places.)

Return Investment: = S/C - 1 = 550,000 / 570,000 - 1 = - 3.51%

2. Assume your home is assessed at $200,000. You have a $165,000 loan for 15 years at 8 percent. Your property tax rate is 1.3 percent of the assessed value. In year one, you would pay $13,200 in mortgage interest and $2,600 in property tax (1.3 percent on $200,000 assessed value).
What is the total deduction you can take on your federal income tax return?

Federal income tax return deduction amount = (Mortgage interest + Real estate taxes) = ($13,200 + 2,600) = $ 15,800