1-You have $162,000 in your retirement account that is earning 8% per year. How many dollars...
1-You have $162,000 in your retirement account that is earning 8% per year. How many dollars in withdrawals per year would reduce this nest egg to zero in 20 years?
2-Your employer provides a 401(k) plan with a matching contribution of 5% of your salary if you put in at least 5% of your salary. If your monthly salary is $4850, then how much must you contribute to your retirement account each month in order to receive the the matching contribution from your employer?
Homework Answers
1)
Present value of annuity= payment per period * [1-(1+i)^-n]/i
i = interest rate per period
n = number of periods
=>
withdrawal * [1-(1+8%)^-20]/8% = 162000
=>
withdrawals per year = 16500.06
2)
monthly contribution = 4850 * 5%
= 242.5
Add Answer to:
1-You have $162,000 in your retirement account that is earning
8% per year. How many dollars...
You have $182,000 in your retirement account that is earning 3% per year. How many dollars...
You have $182,000 in your retirement account that is earning 3% per year. How many dollars in withdrawals per year would reduce this nest egg to zero in 20 years?
You have $55,000 in your retirement account that is earning 4% per year. How many dollars...
You have $55,000 in your retirement account that is earning 4% per year. How many dollars in withdrawals per year would reduce this nest egg to zero in 20 years?
Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put...
Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of your salary. If your monthly salary is $2250 and you contribute just enough to get the match, then how much money will be added to your account in total over one year? Your Answer:
Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of...
Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if...
Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of your salary. If your monthly salary is $3550 and you contribute just enough to get the match, then how much money will be added to your account in total over one year?
You are 21-years-old and working in the marketing department of a medium-sized corporation. You are earning...
You are 21-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $40,000 paid every two weeks. Your employer provides a 401 (k) plan, and matches employee contributions by 50% up to a maximum 3% of your annual salary. You are in a 25% marginal tax rate. 1)Assume that you contribute 6% of your gross income to your 401 (k) account. How much will you contribute annually and per pay period to...
Background Information: One of the most common forms of protection programs in use today are retirement...
Background Information: One of the most common forms of protection programs in use today are retirement programs. While there are several different types of retirement programs available to employees in various industries, one of the most common and well-known retirement programs is the 401(k) plan. For this homework, you will be practicing calculations that help you explore both the 401(k) contribution and employer matching process. Instructions: You have just started a new job and are thrilled to learn that your...
6. You are trying to determine how much money you will need at retirement in your...
6. You are trying to determine how much money you will need at retirement in your retirement "nest egg." You plan to retire on your 60th birthday and immediately take your first withdrawal from your retirement account of $4,583.33. You plan to make 24 such withdrawals each year (i.e., two per month). You plan on doing his until you are 72 years old. Assume beginning of the period withdrawal with the first on your 60th birthday and your final birthday....
You are planning to invest $1,000 in an account earning 8% per year for retirement. a....
You are planning to invest $1,000 in an account earning 8% per year for retirement. a. If you put the $1,000 in an account at age 23, and withdraw it 44 years later, how much will you have? b. If you wait 10 years before making the deposit, so that it stays in the account for only 34 years, how much will you have at the end?
If an individual employee age 25 earning $45,000 per year has an opportunity to par 45,000...
If an individual employee age 25 earning $45,000 per year has an opportunity to par 45,000 per year has an opportunity to participate in an Proyer Sponsored 401(k) tax sheltered retirement account with the employer matching the first $2,400 of annual contributions made by the employee, compute the following: A. If the individual employee is in the 25% marginal income tax bracket and invests $2,400 per year into the employer provided 401(k) tax sheltered retirement account, how much will the...
Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are...
Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $45,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 3% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account Statement An Advantage...
You have $55,000 in your retirement account that is earning 4% per year. How many dollars in withdrawals per year would reduce this nest egg to zero in 20 years?
Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of your salary. If your monthly salary is $2250 and you contribute just enough to get the match, then how much money will be added to your account in total over one year? Your Answer:
Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of...
6. You are trying to determine how much money you will need at retirement in your retirement "nest egg." You plan to retire on your 60th birthday and immediately take your first withdrawal from your retirement account of $4,583.33. You plan to make 24 such withdrawals each year (i.e., two per month). You plan on doing his until you are 72 years old. Assume beginning of the period withdrawal with the first on your 60th birthday and your final birthday....
If an individual employee age 25 earning $45,000 per year has an opportunity to par 45,000 per year has an opportunity to participate in an Proyer Sponsored 401(k) tax sheltered retirement account with the employer matching the first $2,400 of annual contributions made by the employee, compute the following: A. If the individual employee is in the 25% marginal income tax bracket and invests $2,400 per year into the employer provided 401(k) tax sheltered retirement account, how much will the...
Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $45,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 3% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account Statement An Advantage...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago