Question

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1) Commentary on the cartoon: The older worker (Boomer) did not plan well for retirement, and has to work to supplement his retirement check. The Social Security system spends money taken from current workers to pay the benefits of today's retirees. That explains the younger worker's (Generation X) response to the older worker. Money older worker's social security check. taken from his paycheck to fund the In the near rure, there will or be enough people working to pay all retirees at today's rate. The Social Securit lternative is to establish your own retirement fund. We can use t Social Security's options are to increase th will go ba money Neither option is popular. An altern formulas that we worked with in this Module to analyze different retirement plans Your Retirement: Plan 1 - Starting Early a) Enter your desired amount of money you wish to receive each month while retired S DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT b) Upon retirement (40 years from now) you pays 6.3% interest. How much money must be in the account to fulfill your goal? Amount of money needed S ant to receive "x dollars" (amount of money you choose in Part a) each month for a period of 28 years. This money resides in an account that DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT Round your answer to 2 decimal places as needed. c) You plan to deposit money every month for 40 years into an account that pays 5.1%. What monthly deposit must you make to achieve the amount of money determined in the answer to Part b above? Payment amount S DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT Round your answer to 2 decimal places as needed. d) How much money did you actually deposit into the account? Total amount deposited = S DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT Roundyour answer to 2 decimal places as needed. e) How much money will you actually receive in payments during retirement? Total amount received S DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT. Roundyour answer to 2 decimal places as needed. Your Retirement: Plan 2 - Waiting Until Middle Age are depositing money every month for only 20 years into an the same account that still pays 5.1%. What monthly deposit must you the answer to Part f) You wait until later to start saving for retirement, and make to achieve the amount of money determined above? Payment amount S DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT Round your answer o 2 decimal places as needed. g) How much money did you actually deposit in this plan? Total amount deposited S DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT Round your answer 2 decimal places as needed. e costly is the monthly payment of Plan 2 (saving for 20 years) compared to Plan 1 (saving for 40 years)? h) How Hint: Divide Part fhy Part c How many times more costly 20 year plan is compared to 40 year plan = | DO NOT TYPE COMMAS OR ANSWERS WILL BE MARKED INCORRECT Round your answer to 2 decimal places as needed.

Answer 1

Sdufron GRven cala cansder the cld oote(eone d'd not plan uell r retr ement and haš to ucosk to UPpemert hig etřment cheek- As per YLules i am the frt 4ujitds of te quostion anng (A) Amaunt reuired each month A300 1 B) Amaut af moncy needed 4363444 66 - usng inanial caludalor Inaut PMT 43000 N 28X2 =33 55/12 Solve foo Pv aß 7363444ę.66 ghib is the Amoul at rebrrement c) payment ing firaucid daleulata amourt - 4578 88 Input FV 7363444.66 40*R N: 50l ve fo PMT as 57888

(D) TOtal amant depoated a7860 457E 8X480