Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please ignore the last image I sent you, this is the correct ones. /wait/26187285/ Jamie Lee and Ross, now 57 and still very active, have
please ignore the last image I sent you, this is the correct ones.
/wait/26187285/ Jamie Lee and Ross, now 57 and still very active, have plenty of time on their hands now that the triplets are away at college. They both realized that time has just flown by: over twenty-four years have passed since they married! Looking back over the past years, they realized that they have worked hard in their careers, Jamie Lee as the proprietor of a cupcake caf and Ross, self-employed as a web-page designer. They have enjoyed raising their family and strived to be financially sound as they are looking to retirement that is just around the corner. They saved regularly and invested wisely over the years. They rebounded nicely from the economic crisis over the past few years, as they watched their investments closely and adjusted their strategies when they felt it necessary. They purchase vehicles with cash and do not carry credit card balances, choosing instead to use them for convenience only. The triplets are pursuing their master's degrees and have tuition covered through work/study programs at the university. Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 65 and purchasing a home at the beach! They are reviewing their financial situation to ensure they will be ready for retirement. They anticipate being able to live comfortably with 80% of their current expenses. The rate of return on their investments until they retire is 5%. They expect this percentage to drop to 4% after retirement. Use this information, along with Exhibit 1-A, Exhibit 1-B, and the information provided below to determine the annual deposit amount Jamie Lee and Ross will need to make until they retire in order to make up the shortfall between their estimated expenses and income needed during retirement. Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories. Current Expense Amounts (Jamie Lee and Ross Combined) Fixed expenses: $3,900/month Variable expenses: $2,900/month Estimated Income Amounts (Jamie Lee and Ross Combined) Social Security: $3,000/month Current IRA balance: $98,000 Estimated IRA withdrawal: $400/month Other investments: $30,900/year Estimated Annual Retirement Living Expenses 3. $27,985 4. $1,015 5. $30,015 6. $10.15 After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $10,000 price, but financing through the dealer is no bargain. He has $2,000 cash for a down payment, so he needs an $8,000 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,000 for a period of four years at an add-on interest rate of 11 percent (a) What is the total interest on Richard's loan? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Total interest (b) What is the total cost of the car? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Total cost (c) What is the monthly payment? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Monthly payment (d) What is the annual percentage rate (APR)? (Do not round your intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annual percentage rate % Estimated Annual Retirement Living Expenses Estimated annual living expenses if retiring today Number of years until retirement Expected annual rate of return before retirement Future value (use Exhibit 1-A) Projected annual retirement living expenses, adjusted for inflation (Round your final answer to nearest whole number.) X (A) $ 0 Estimated Annual Income at Retirement Social Security income Company pension, personal retirement account income Investment and other income Total retirement income (Round your final answer to nearest whole number.) (B) $ 0 (C) Needed investment fund after retirement (A-B) (Round your final answer to nearest whole number.) Number of years until retirement Expected annual rate of return before retirement Future value for a series of deposits (use Exhibit 1-B) Annual deposit to achieve needed investment fund (C/D) (Round your final answer to two decimal places.) (D) Jamie Lee and Ross, now 57 and still very active, have plenty of time on their hands now that the triplets are away at college. They both realized that time has just flown by: over twenty-four years have passed since they married! Looking back over the past years, they realized that they have worked hard in their careers, Jamie Lee as the proprietor of a cupcake caf and Ross, self-employed as a web page designer. They have enjoyed raising their family and strived to be financially sound as they are looking to retirement that is just around the corner. They saved regularly and invested wisely over the years. They rebounded nicely from the economic crisis over the past few years, as they watched their investments closely and adjusted their strategies when they felt it necessary. They purchase vehicles with cash and do not carry credit card balances, choosing instead to use them for convenience only. The triplets are pursuing their master's degrees and have tuition covered through work/study programs at the university Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 65 and purchasing a home at the beach! They are reviewing their financial situation to ensure they will be ready for retirement. They anticipate being able to live comfortably with 80% of their current expenses. The rate of return on their investments until they retire is 5%. They expect this percentage to drop to 4% after retirement. Use this information, along with Exhibit 1-A, Exhibit 1-B, and the information provided below to determine the annual deposit amount Jamie Lee and Ross will need to make until they retire in order to make up the shortfall between their estimated expenses and income needed during retirement. Each answer must have a value for the assignment to be complete. Enter "O" for any unused categories. Current Expense Amounts (Jamie Lee and Ross Combined) Fixed expenses: $3,900/month Variable expenses: $2,900/month Estimated Income Amounts (Jamie Lee and Ross Combined) Social Security: $3,000/month Current IRA balance: $98,000 Estimated IRA withdrawal: $400/month Other investments: $30.900/year /wait/26187285/ Jamie Lee and Ross, now 57 and still very active, have plenty of time on their hands now that the triplets are away at college. They both realized that time has just flown by: over twenty-four years have passed since they married! Looking back over the past years, they realized that they have worked hard in their careers, Jamie Lee as the proprietor of a cupcake caf and Ross, self-employed as a web-page designer. They have enjoyed raising their family and strived to be financially sound as they are looking to retirement that is just around the corner. They saved regularly and invested wisely over the years. They rebounded nicely from the economic crisis over the past few years, as they watched their investments closely and adjusted their strategies when they felt it necessary. They purchase vehicles with cash and do not carry credit card balances, choosing instead to use them for convenience only. The triplets are pursuing their master's degrees and have tuition covered through work/study programs at the university. Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 65 and purchasing a home at the beach! They are reviewing their financial situation to ensure they will be ready for retirement. They anticipate being able to live comfortably with 80% of their current expenses. The rate of return on their investments until they retire is 5%. They expect this percentage to drop to 4% after retirement. Use this information, along with Exhibit 1-A, Exhibit 1-B, and the information provided below to determine the annual deposit amount Jamie Lee and Ross will need to make until they retire in order to make up the shortfall between their estimated expenses and income needed during retirement. Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories. Current Expense Amounts (Jamie Lee and Ross Combined) Fixed expenses: $3,900/month Variable expenses: $2,900/month Estimated Income Amounts (Jamie Lee and Ross Combined) Social Security: $3,000/month Current IRA balance: $98,000 Estimated IRA withdrawal: $400/month Other investments: $30,900/year Estimated Annual Retirement Living Expenses 3. $27,985 4. $1,015 5. $30,015 6. $10.15 After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $10,000 price, but financing through the dealer is no bargain. He has $2,000 cash for a down payment, so he needs an $8,000 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,000 for a period of four years at an add-on interest rate of 11 percent (a) What is the total interest on Richard's loan? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Total interest (b) What is the total cost of the car? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Total cost (c) What is the monthly payment? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Monthly payment (d) What is the annual percentage rate (APR)? (Do not round your intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annual percentage rate % Estimated Annual Retirement Living Expenses Estimated annual living expenses if retiring today Number of years until retirement Expected annual rate of return before retirement Future value (use Exhibit 1-A) Projected annual retirement living expenses, adjusted for inflation (Round your final answer to nearest whole number.) X (A) $ 0 Estimated Annual Income at Retirement Social Security income Company pension, personal retirement account income Investment and other income Total retirement income (Round your final answer to nearest whole number.) (B) $ 0 (C) Needed investment fund after retirement (A-B) (Round your final answer to nearest whole number.) Number of years until retirement Expected annual rate of return before retirement Future value for a series of deposits (use Exhibit 1-B) Annual deposit to achieve needed investment fund (C/D) (Round your final answer to two decimal places.) (D) Jamie Lee and Ross, now 57 and still very active, have plenty of time on their hands now that the triplets are away at college. They both realized that time has just flown by: over twenty-four years have passed since they married! Looking back over the past years, they realized that they have worked hard in their careers, Jamie Lee as the proprietor of a cupcake caf and Ross, self-employed as a web page designer. They have enjoyed raising their family and strived to be financially sound as they are looking to retirement that is just around the corner. They saved regularly and invested wisely over the years. They rebounded nicely from the economic crisis over the past few years, as they watched their investments closely and adjusted their strategies when they felt it necessary. They purchase vehicles with cash and do not carry credit card balances, choosing instead to use them for convenience only. The triplets are pursuing their master's degrees and have tuition covered through work/study programs at the university Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 65 and purchasing a home at the beach! They are reviewing their financial situation to ensure they will be ready for retirement. They anticipate being able to live comfortably with 80% of their current expenses. The rate of return on their investments until they retire is 5%. They expect this percentage to drop to 4% after retirement. Use this information, along with Exhibit 1-A, Exhibit 1-B, and the information provided below to determine the annual deposit amount Jamie Lee and Ross will need to make until they retire in order to make up the shortfall between their estimated expenses and income needed during retirement. Each answer must have a value for the assignment to be complete. Enter "O" for any unused categories. Current Expense Amounts (Jamie Lee and Ross Combined) Fixed expenses: $3,900/month Variable expenses: $2,900/month Estimated Income Amounts (Jamie Lee and Ross Combined) Social Security: $3,000/month Current IRA balance: $98,000 Estimated IRA withdrawal: $400/month Other investments: $30.900/year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started