Answer Happy

Suppose that Amy is 35 years old and has no retirement savings. She wants to begin saving for retirement, with the first payment coming one year from now. She can save $30,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 10.00% return. Assume that this rate will be constant for the rest of her's life. In short, this scenario fits all the criteria of an ordinary annuity. Amy would like to calculate how much money she will have at age 65. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Input Keystroke N Output I/Y PV Input Keystroke N Output Using a financial calculator yields a future value of this ordinary annuity to be approximately PMT Amy would now like to calculate how much money she will have at age 70. I/Y FV ? Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. 0 PV PMT FV ? at age 65. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 70. Amy expects to live for another 25 years if she retires at age 65, with the same expected percent return on investments in the stock market. She would like to calculate how much she can withdraw at the end of each year after retirement.
Input Keystroke Output N I/Y Input Keystroke N Output Using a financial calculator yields a future value of this ordinary annuity to be approximately Input Keystroke Output PV Amy expects to live for another 25 years if she retires at age 65, with the same expected percent return on investments in the stock market. She would like to calculate how much she can withdraw at the end of each year after retirement. PMT Use the following table to indicate which values you should enter on your financial calculator in order to solve for PMT in this scenario. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. X/Y N FV ? I/Y Amount saved for retirement by age 65 PV Using a financial calculator, you can calculate that Amy can withdraw retirement at age 65), assuming a fixed withdrawal each year and $0 remaining at the end of her life. Amy expects to live for another 20 years if she retires at age 70, with the same expected percent return on investments in the stock market. PV PMT ? Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Amount saved for retirement by age 70 at age 70. 0 FV Using a financial calculator, you can calculate that Amy can withdraw. assuming a fixed withdrawal each year and $0 remaining at the end of her life. at the end of each year after retirement (assuming 0 PMT FV ? at the end of each year after retirement at age 70,