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. To the nearest cedi, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to meet his retirement goal? (Note: Neither the amount he saves nor the amount he withdraws upon retirement is a growing annuity.)

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Mr. Moore is 35 years old today and is beginning to plan for his retirement. He wants to set aside an equal amount at the end of each of the next 25 years so that he can retire at age 60. 

He expects to live  to the maximum age of 80  and wants to be able to withdraw $25,000 

per year from the account on his 61st through 80th birthdays. The account is expected to earn 10 percent per annum for the entire period of time. 

Determine the size of the annual deposits that must be made by Mr. Moore.

________1. Randy Hill wants to retire in 10 years with $500,000.He can earn 6% per year on his investments. Compute how much heneeds to deposit each year to reach his goal. ________2. Joe Morriswants to start a savings fund from which his grandson couldwithdraw $3,000 a year for 10 years. The fund would earn 5%interest. Compute the amount Joe would have to deposit now to reachhis goal. ________3. Your rich aunt has offered to finance fiveyears of college for you. The annual cost will be $30,000 and theinterest rate is 5%. Compute how much money your aunt must give younow to finance the five years of college. ________4. Assume yourfather is 55 and wants to retire at age 65 with $300,000 in aretirement fund. The interest rate is 8%. Compute how much he mustdeposit at age 55 to accumulate the $300,000. ________ 5. Assumeyou want to have $25,000 for a down payment for a house in fiveyears. Compute the amount you would need to deposit today. Yourmoney will earn 5 percent. ________ 6. Jeff Renfro is planning togo to graduate school (Ph.D) in a program of study that will takesix years. Jeff wants to have $35,000 available each year forvarious school and living expenses. He can earn 5 percent on hismoney. Compute how much he must deposit at the start of his studiesto be able to withdraw $35,000 a year for six years. ________7.Angie Baden deposits $10,000 a year into her retirement account.These funds will earn 8 percent over the 10 years until herretirement. Compute what the value of her retirement account willbe when she retires. ________8. Assume you borrow $80,000 with a 7percent interest rate, to be repaid in seven equal yearly payments.Compute the amount of each payment.

SHOW ALL STEPS. NEED TO DOUBLE CHECK WORK

Complete the following two retirement scenarios as instructed.(Hint: draw a time line and see what you know for each time periodand for which time period you know enough to calculate the presentvalue or the future value of the cash flows.)

1) Tom is planning for a very early retirement. Tom would liketo retire at age 40 and have enough money saved to be able to draw$250,000 per year for the next 40 years. Based on family history,he thinks it is likely that he will live to age 80. He plans tosave by making 15 equal annual installments (from age 25 to age 40)into a fairly risky investment fund that he expects will earn 12%per year. He will leave the money in this fund until it iscompleted depleted when he is 80 years old. To make his planwork

a. How much money must Tom accumulate byretirement?

b. How much money will Tom draw out during hisretirement?

c. How much must Tom pay into the investment each year for thefirst 15 years?

d. Compare the out-of-pocket savings to the investment value atthe end of the 15 years to the withdrawals made during Tom’sretirement. Comment below on how these numbers could beso different, if they are. Use full sentences,please.

2) Tom’s sister, Janet, is also planning for retirement;however, she started saving for her retirement earlier than Tomsince she expects that she will need more money for retirementbased on the fact that women in their family usually live longerthan men. She also is planning for a very early retirement. Janetwould like to retire at age 40 and have enough money saved to beable to draw $250,000 per year for the next 50 years. Based onfamily history, she thinks it is likely that she will live to age90. She plans to save by making 20 equal annual installments (fromage 20 to age 40) into a fairly risky investment fund that sheexpects will earn 12% per year. She will leave the money in thisfund until it is completed depleted when she is 90 years old. Tomake her plan work

a. How much money must Janet accumulate byretirement?

b. How much money will Janet draw out during herretirement?

c. How much must Janet pay into the investment each year for thefirst 20 years?

d. Compare the out-of-pocket savings to the investment value atthe end of the 20 years to the withdrawals made during Janet’sretirement. Comment below on how these numbers could beso different, if they are. Use full sentences,please.

Comment also on how different Janet’s numbers are fromTom’s, if they are. Again, please use full sentences. Makesure to clearly give all reasons thatthey are different if they are.

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