Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $45 000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a superannuation fund. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the superannuation fund earns an annual rate of return of 7%.The future value (FV) at retirement (age 65) of your savings is closest to:

Your age is 30 years now and you plan to start saving for the retirement that will occur at the age of 60. To accomplish your retirement goals, you intend to save $2,000 at the end of every year until you retire. The first deposit will occur in one year from today and the last deposit will be made when you retire at age 60. Suppose that the retirement fund promises you a return of 8% per year: a) How much will you have saved for the retirement? b) Now assume that you don’t start funding towards your retirement savings instantly. Instead, you wait and start saving from the time you turn 35 years with your first deposit occurring at the end of that year. Calculate the amount saved for the retirement in this scenario. c) Redo part a) assuming that the retirement fund delivers 6% per annum compounded semi-annually.

John is 30 years old. He comes up with a plan to save for his retirement at 65 years. Currently, he has saved $20,000 in a balanced superannuation account earning 5.1% p.a. compounded annually. He has set himself a retirement target of $2,000,000. How much must be deposited every year into John's superannuation account, starting next year, to reach his target? (Round your answer in dollars to 2 decimal places, e.g. put 1204.42 if your answer is 1204.4243.)

You are saving for retirement. You plan to retire when you reach 65 yearsold. To live comfortably during retirement, you plan to withdraw moneyfrom your savings account $48,000 each year. Suppose today is your 25thbirthday, and you decide, starting today and continuing on every yearup to your 64th birthday, that you will put the same amount into a savingsaccount. If the interest rate is 2.4% per annum, compounded annually,how much must you set aside each year to make sure that you will haveenough money in the account on your 65th birthday in order to be ableto withdraw $48,000 per year when you retire and you expect to live untilyour are 90 years old (i.e., the first withdrawal is on your 65th birthday andthe last withdrawal occurs on your 89th birthday)?

Which of these savings periods will result in the largest future amount when you retire at age 67, assuming any positive rate of return?ANSWERSave $2,000 a year from age 47 to age 67.Save $2,000 a year from age 42 to age 62.Save $2,000 a year from age 22 to age 42.

Retirement Investment Advisors Incorporated, has just offered you an annual interest rate of 6 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 6.6 percent per year one year from today. If you plan to deposit $18,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?Multiple Choice$32,529.54$12,219.43$22,866.08$48,043.26$49,213.56