Please do not give solution in image format thanku At age 35, Ronald eams his MBA and accepts a position as a vice president of an asphalt company. Assume that he will retire at the age of 65, having received an annual salary of $95,000, and that the interest rate is 5%, compounded continuously. What is the accumulated present value of his position? What is the accumulated future value of his position?

Please do not give solution in image format thanku At age 35, Ronald eams his MBA and accepts a position as a vice president of an asphalt company. Assume that he will retire at the age of 65, having received an annual salary of $95,000, and that the interest rate is 5%, compounded continuously. What is the accumulated present value of his position? What is the accumulated future value of his position?

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

See similar textbooks

Similar questions

At age 35, Ronald earns his MBA and accepts a position as a vice president of an asphalt company. Assume that he will retire at the age of 65, having received an annual salary of $85,000, and that the interest rate is 8%, compounded continuously. a) What is the accumulated present value of his position? b) What is the accumulated future value of his position?
At age 35, Ronald earns his MBA and accepts a position as a vice president of an asphalt company. Assume that he will K retire at the age of 65, having received an annual salary of $105,000, and that the interest rate is 5%, compounded continuously. a) What is the accumulated present value of his position? b) What is the accumulated future value of his position?
Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 65 and puts $11,000 into an account earning 10% compounded annually. Person Age Initial Investment Accumulated Investmentby Retirement (age 65) Alec Daniel William Stephen 55 45 35 25 $11,000 11,000 11,000 11,000 $_________________ $_________________ $_________________ $_________________ Required:Calculate how much each person will have accumulated by the age of 65.
At age 25, you start work for a company and are offered two retirement options. Retirement option 1: When you retire, you will receive a lump sum of $30,000 for each year of service. At age 59, option 1 will provide a retirement benefit of what amount? esc $ At age 59, option 2 will provide a retirement benefit of what amount? Round your answer to the nearest whole dollar. $ Retirement option 2: When you start to work, the company deposits $15,000 into an account with an APR of 12% compounded monthly. When you retire, you get the balance of the account. Which option is better if you retire at age 59? O retirement option 1 retirement option 2 At age 69, option 1 will provide a retirement benefit of what amount? $ At age 69, option 2 will provide a retirement benefit of what amount? Round your answer to the nearest whole dollar. $ Which option is better if you retire at age 69? retirement option 1 O retirement option 2 D F1 F2 ㅁㅁ 13 F3 5 F4 JUL D DŹ BO F5 ♫ MacBook Air F6 8 F7 tv NA ▶11…
George Clausen (age 48) is employed by Kline Company and is paid an annual salary of $42,640. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: a. What is the maximum that he can contribute into this retirement fund? $ 12,500 ✓ b. What would be the company's contribution? $ X Note: For items c. & d. below, round interim amounts two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be his weekly take-home if he contributes the maximum allowed retirement contribution (married, allowances, wage-bracket method, and a 2.3 % state income tax on total wages)? Click here to access the Wage-Bracket Method Tables. $ X d. What would be his weekly take-home pay without the retirement contribution deduction? X
Assume that A contributes $2 000 every end of the year into a retirement account paying 8%. If A retires in 30 years, how much will she have? Select one: a. $226 566 b. $216 566 c. $206 566 d. $236 566
Jim Hunter has decided to retire to Florida in 10 years. What amount should Jim invest today so that he'll be able to withdraw $25,000 at the end of each year for 30 years after he retires? Assume he can invest money at 9% interest compounded annually. A. $18,790.27 B. $105,470.27 C. $10,480.27 D. $108,490.27
Q)A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $200,000 and she expects her salary to increase by 4% each year, what will be th future worth of her retirement fund after 14 years provided it earns 8% per year? Explain it correctly typed or handwriting. Not solve in excel works.
Note: Dont "t Post Image with answer Jim Fortunate received a large insurance settlement of $ 200,000. When Jim retires in 25 years, he would like to have at least $80,000 yearly income for 10 years. A local bank pays 6% interest compounded semiannually on a certificate of deposit. How much of the settlement Must Jim place in the bank to meet his retirement goal?
Find the future value of a continuous stream Question A 30-year-old places a continuous stream of $6, 000 per year into a retirement account which has a continuously compounding interest rate of 1.2%. What will be the value of this continuous stream when this person retires at age 65? Round your answer to the nearest integer. Do not include a dollar sign or commas in your answer. Provide your answer below: FEEDBACK MORE INSTRUCTION SUBMIT
EZ Leifer plans to retire at the age of 65 and believes he will live to be 90. EZ wants to receive an annual retirement payment of $50,000 at the beginning of each year. He seta a retirement account that is estimated to earn 6 percent annually. a. How much money will EZ have in the account when he reached 65 years old? b. EZ is currently 29 years of age. How much must he invest in this account at the end of each year for the next 36 years to have the required amount in his account at age 65?
a. Suppose that between the ages of 22 and 32, you contribute $7000 per year to a 401(k) and your employer contributes $3500 per year on your behalf The interest rate is 9 4% compounded annually What is the value of the 401(k) after 10 years? b. Suppose that after 10 years of working for this firm, you move on to a new job However, you keep your accumulated retirement funds in the 401(k) How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? a. The value of the 4010) after 10 years is S (Do not round until the final answer. Then round to the nearest dollar as needed )