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Assume you have the following assets at age 65: Pension Plan worth $400,000 today. You plan to take an annuity to withdraw all assets in
Assume you have the following assets at age 65:
- Pension Plan worth $400,000 today. You plan to take an annuity to withdraw all assets in 20 years. Assume 3% interest per year. You will get monthly payments for 20 years.
- Social Security - $18,000 per year for 20 years. Assume that this is the amount you will receive each year.
- Savings worth $150,000 today. You plan to take an annuity to withdraw all assets in 20 years. Assume 3% interest per year. You will get monthly payments for 20 years.
Answer the following questions:
- What will be your monthly amounts for the pension plan, social security, and savings? What will be the monthly total? Answers are rounded to the nearest penny.
- What will be the yearly amounts for the pension plan, social security, and savings? What will be the yearly total? Answers are rounded to the nearest dollar.
- What will be the 20-year amounts for the pension plan, social security, and savings? What will be the 20-year total amount? Round all answers to the nearest dollar.
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Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
978-0324663853
