Jack just turned 55. Jack is planning to retire in 10 years, and he currently ha
ID: 3302563 • Letter: J
Question
Jack just turned 55. Jack is planning to retire in 10 years, and he currently has $500,000 in his pension fund. Based on the longevity pattern of her family, she assumes that she will live 20 years past her retirement rate; during each of these years she desires to withdraw $100,000 from his pension fund. If the interest rate is 5% annually, how much will Jack have to save annually for the next 10 years? Assume that the first deposit to his pension fund will be today, followed by nine more annual deposits, and that the annual withdrawals from age 65 will occur at the beggining of each year.
A. How much is annual withdrawn(deposit) at age 57?
B.How much is account balance at the beginning of age 84?
C. How much is the account balance at end of age 84?
Use the Photo below to aid you
SAVING FOR THE FUTURE 100,000 yout Annual desired pension pa Deposit or withdrawal Interest rate Account balance, Interest earned account beginning of beginning of 10,000 10,000 10,000 during year end of year Your age 535,500 Dho 500,000 535,500 25,500 27,275 572,775 10,00031,096 10,00033,150 35,308 37,573 39,952 42,450 45,072 42,326 39,442 653,009 696,160 741,468 789,041 838,993 891 443 946,515 888,841 828,283 764,697 697,932 627,829 554 220 476,931 395,778 310,566 221,095 61 62 63 64 653,009 696,160 741,468 789,041 838,993 891,443 10,000 10,000 10,000 10,000 10,000 888,841 828,283 764,697 697,932 627,829 554,220 946,515 (100,000) (100,000) (100,000) (100,000) (100,000 100,000 (100,000) (100,000) (100,000 67 33 235 29,897 73 74 75 395,778 310,566 (100,000) (100,000) (100,000) 28,507 (100,000) (100,000) 10,528 221095 127,150 75,068 (183,821) 298,012 79 80 81 82 83 84 (183,821)100,000 (14,191 2980121 (417,9131(100,000) (25,896) (543.8081 (100,000! (32.1901 (675,999)(100,000)(38,3 (814799)(100,000)(45,740) )- ( (543,808) (100,000) 100,000) (38800)(814,799) 1610- 675,999 960,539Explanation / Answer
A. Annual deposit at the age of 57 = 10,000
B. Account balance at the beginning of age 84 = 814,799
C. Account balance at end of age 84 = 960,539
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.