using BA II financial calculator
Your father is celebra for his anticipated retiren $15,000 from his savings After extensive research, yo money in an account that offers Is celebrating his 50 birthday today and wants to start saving ated retirement at age 65. He wants to be able to withdraw his retirement; the first withdrawal will be on his his savings account on each birthday for 20 years following first withdrawal will be on his 66 birthday. ve research, your father determines that he can invest his an account that offers 5% interest per year (compounded quarterly). He wants to make equal annual payments on each on e equal annual payments on each birthday into the account - the first payment on his 51 birthday, and the last on his day. In addition your father's emplover will contribute $100 to the the end of every month as part of the company's profit-sharing tal of 180 contributions). What amount must your father deposit lally each year on his birthday to make the desired withdrawals at birthday. In addition your father's er account at the end of every month as part of the retirement? You will need to convert an EAR based on a quarterly compounded nominal rate to an effective monthly rate. This can be done with the formula: EP 4/12 EMR = EMR = (1+ Kinomaines 1 + nominal - A) $7,305 B) $9,411 C) $15,667 D) $18,549 E) $26,682 so bdas BS b EMR = 1 1 -0.050945 x100=5. 15000 PM 8.0945 Ily annual, no need to find monthly ! .4149 1ly COT EV (P1 PV = 185 444,35 ] Fr company contribution) = 100KVA EMR = 1 Solutions: 1. D; 2. B; 3. C; 4. A. -] = 0.004149 x100=4149 Your father is celebra for his anticipated retiren $15,000 from his savings After extensive research, yo money in an account that offers Is celebrating his 50 birthday today and wants to start saving ated retirement at age 65. He wants to be able to withdraw his retirement; the first withdrawal will be on his his savings account on each birthday for 20 years following first withdrawal will be on his 66 birthday. ve research, your father determines that he can invest his an account that offers 5% interest per year (compounded quarterly). He wants to make equal annual payments on each on e equal annual payments on each birthday into the account - the first payment on his 51 birthday, and the last on his day. In addition your father's emplover will contribute $100 to the the end of every month as part of the company's profit-sharing tal of 180 contributions). What amount must your father deposit lally each year on his birthday to make the desired withdrawals at birthday. In addition your father's er account at the end of every month as part of the retirement? You will need to convert an EAR based on a quarterly compounded nominal rate to an effective monthly rate. This can be done with the formula: EP 4/12 EMR = EMR = (1+ Kinomaines 1 + nominal - A) $7,305 B) $9,411 C) $15,667 D) $18,549 E) $26,682 so bdas BS b EMR = 1 1 -0.050945 x100=5. 15000 PM 8.0945 Ily annual, no need to find monthly ! .4149 1ly COT EV (P1 PV = 185 444,35 ] Fr company contribution) = 100KVA EMR = 1 Solutions: 1. D; 2. B; 3. C; 4. A. -] = 0.004149 x100=4149
