unapter 14 Homework Problems education Seve 5 Hey Some Check my work nest egg. Sne Deneves ner TKA W grow at an annual rate or y percent, and snepans to leave moned unti nereres at age 1 Ruby estimates that she will need $875.000 in her total retirement est egg by the time she is 65 in order to have retirement income of $20,000 a year she expects that Social Security will pay her an additional $15.000 a year). Using Ex Ext 1-3. Exibid Exhibit I-D, answer the following questions a. How much will Ruby's IRA be worth when she needs to start withdrawing money from it when she retres? found discount factor te 3 decimal places and final answer to the nearest whole dollar) 5.76 noints ooo Worth of RA 251.810 References b. How much money will she have to accumulate in her company's 401) plan over the next 40 years in order to reach her retirement income goal? (Round discount factor to 3 decimal places and final answer to the nearest whole dollar) Money to accumulate Return on Calculate approximately how much money an older (age 65-74) household with an annual income of $50,000 spends on health care each year. Use Exhibit 14-3. Answer is complete but not entirely correct. Money spent on health care 610,000 You have $80,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly a. How many dollars in withdrawals per month would reduce this nest egg to zero in 15 years? Use Exhibit 14-2 Chy Withdrawal b. How many dollars per month can you withdraw for as long as you live and still leave this nest egg intact? Use Exhibit 14.7. Withdrawal unapter 14 Homework Problems education Seve 5 Hey Some Check my work nest egg. Sne Deneves ner TKA W grow at an annual rate or y percent, and snepans to leave moned unti nereres at age 1 Ruby estimates that she will need $875.000 in her total retirement est egg by the time she is 65 in order to have retirement income of $20,000 a year she expects that Social Security will pay her an additional $15.000 a year). Using Ex Ext 1-3. Exibid Exhibit I-D, answer the following questions a. How much will Ruby's IRA be worth when she needs to start withdrawing money from it when she retres? found discount factor te 3 decimal places and final answer to the nearest whole dollar) 5.76 noints ooo Worth of RA 251.810 References b. How much money will she have to accumulate in her company's 401) plan over the next 40 years in order to reach her retirement income goal? (Round discount factor to 3 decimal places and final answer to the nearest whole dollar) Money to accumulate Return on Calculate approximately how much money an older (age 65-74) household with an annual income of $50,000 spends on health care each year. Use Exhibit 14-3. Answer is complete but not entirely correct. Money spent on health care 610,000 You have $80,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly a. How many dollars in withdrawals per month would reduce this nest egg to zero in 15 years? Use Exhibit 14-2 Chy Withdrawal b. How many dollars per month can you withdraw for as long as you live and still leave this nest egg intact? Use Exhibit 14.7. Withdrawal
