A 35-year-old businessman, his current salary is $100,000 and is increasing at 5% annually, and he has a fortune of $1 million. His plan is to retire at the age of 55. This man is considering allocating $500.000 of his wealth for a project that takes him 5
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- Your father's employer was just acquired, and he was given a severance payment of $375,000, which he invested at a 7.5% annual rate. He now plans to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero?Mr. Grayson is considering giving up his paid employment and going into business on his ownaccount. He is considering buying a quarry pit with a “life” of about 35 years. To purchase thisbusiness, he would have to pay sh 4,750,000 now. Mr. Grayson wishes to retire in 20 years’time. He predicts that the net cash operating receipts from this business will be sh 1,250,000 perannum for the first 15 years and sh 1,000,000 per annum for the last 5 years. He thinks that thebusiness could be sold at the end of the 20 year period for sh 1,500,000. Additionally, heestimates that certain capital replacements and improvements would be necessary and this shouldamount to sh 100,000 per annum for the first 5 years; sh 150,000 per annum for the next 5 years,sh 200,000 per annum for the next 7 years and nothing for the last three years. This expenditurewould be incurred at the start.Mr. Grayson has excluded any compensation to himself from the above data. If he shouldpurchase the business, however, he…Suppose Mr. Ali wish to retire thirty years from today. He has just recieved a lump-sum amount of $30000 from inheritance, he expect that he may need $50000 on the marriage of his daughter 20 years from today. He determines that he needs $15000 per year once he retires, with the first retirement funds withdrawn one year from the day he retires. He estimates that he will earn 10% per year on the retirement funds and that he will need funds up to and including in his 20th birthday after retirement. a) how much he needs to deposit an account today so that he has enough funds to meet all his future expenditures? b) how much he needs to deposit each year in an account, starting one year from today, so that he may have enough funds to meet all his future requirements? c) suppose that an investment promises to pay a nominal 11.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounding (a) annually? (b) semi…
- r. Grayson is considering giving up his paid employment and going into business on his own account. He is considering buying a quarry pit with a “life” of about 35 years. To purchase this business, he would have to pay sh 4,750,000 now. Mr. Grayson wishes to retire in 20 years’ time. He predicts that the net cash operating receipts from this business will be sh 1,250,000 per annum for the first 15 years and sh 1,000,000 per annum for the last 5 years. He thinks that the business could be sold at the end of the 20 year period for sh 1,500,000. Additionally, he estimates that certain capital replacements and improvements would be necessary and this should amount to sh 1000,000 per annum for the first 5 years; sh 150,000 per annum for the next 5 years, sh 200,000 per annum for the next 7 years and nothing for the last three years. This expenditure would be incurred at the start. Mr. Grayson has excluded any compensation to himself from the above data. If he should purchase the business,…Your uncle has $375,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?bed What's the interest rate of a 5-year, annual $5,400 annuity with present value of $22,000? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.) Annuity interest rate %
- Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per year, will provide him with $3,500 of monthly income for 25 years. To date, he has saved nothing, but he still has 15 years until he retires. How much money does he need to contribute per month to reach his goal? First compute how much money he will need at retirement, then compute the monthly contribution to reach that goal. (Do not round intermediate calculations and round your final answer to 2 decimal places.)Mr. Agunton is planning for her retirement. He is 30 years old today and would like to have N500,000 when he turns 55, he estimates that he will be able to earn 8 percent rate of return on her retirements over time; he wants to set aside a constant amount of money every year (at the end of the year to help achieve his objective. How much money did Agunfon invest at the end of each of the next 25 years to realize his goal of N500,000 at the endYour uncle has $375,000 and wants to retire. He expects to live for another 25 years and to earn 7.5% on his invested funds. How much could he withdraw at the end of each of the next 25 years and end up with zero in the account?
- Jay Johnson graduated from Another University 10 years ago and has not yet started to investfor his retirement. He plans to work for 30 years and can invest $10,000 at the end of each yearat 7% in his 401(k) plan at work. Once he retires, he will change his asset allocation and earn6% on his investments. If he plans to take out money at the beginning of each year for the next25 years of his retirement, how much can he withdraw each year?Fred is an employee of a company that specializes in repossessing aircrafts owned by private individuals. He is nearing 44 years old and wishes to retire by age 55. How much money must he invest today, to the nearest dollar, if he wants to see his money grow to $540,000 in 11 years at an interest rate of 4.3% compounded daily? Round your answer to the nearest dollar.David is 40 years old and plan to retire in exactly 20 years. After retiring, he expects to withdraw RM5,000 per month from a retirement fund to support his living. He expects to live until the age of 85. How much does he need in the fund the moment he retires assuming that he can earn 8% rate of return per year from the fund?