HW #3 - student (1)

School: Rider University - Course: FIN 315 - Subject: Accounting

HW #3 Chapter 2 Exercise #21 (pp 50-51): Part A and Part B Due on 2/16

Saving for Retirement Payout Upon 65th Birthday200,000 Annual Payout4,063 Interest rate7% Age4050,000 4,063 3,784 57,848 4157,848 4,063 4,334 66,244 4266,244 4,063 4,922 75,229 4375,229 4,063 5,550 84,843 4484,843 4,063 6,223 95,129 4595,129 4,063 6,943 106,136 46106,136 4,063 7,714 117,913 47117,913 4,063 8,538 130,514 48130,514 4,063 9,420 143,998 49143,998 4,063 10,364 158,425 50158,425 4,063 11,374 173,863 51173,863 4,063 12,455 190,381 52190,381 4,063 13,611 208,055 53208,055 4,063 14,848 226,966 54226,966 4,063 16,172 247,201 55247,201 4,063 17,589 268,853 56268,853 4,063 19,104 292,020 57292,020 4,063 20,726 316,809 58316,809 4,063 22,461 343,333 59343,333 4,063 24,318 371,714 60371,714 4,063 26,304 402,082 61402,082 4,063 28,430 434,575 62434,575 4,063 30,705 469,343 63469,343 4,063 33,138 506,545 Account balance at beginning of year Deposit or withdrawal at beginning of year Interest earned during yearTotal in account end of year a) On the day of retirement, $546,350 sh saved. b) Today, I would need to save $4,06

64506,545 4,063 35,743 546,350 65546,350 (225,000)22,495 343,845 66343,845 (25,000)22,319 341,164 67341,164 (25,000)22,131 338,295 68338,295 (25,000)21,931 335,226 69335,226 (25,000)21,716 331,942 70331,942 (25,000)21,486 328,428 71328,428 (25,000)21,240 324,668 72324,668 (25,000)20,977 320,644 73320,644 (25,000)20,695 316,340 74316,340 (25,000)20,394 311,733 75311,733 (25,000)20,071 306,805 76306,805 (25,000)19,726 301,531 77301,531 (25,000)19,357 295,888 78295,888 (25,000)18,962 289,850 79289,850 (25,000)18,540 283,390 80283,390 (25,000)18,087 276,477 81276,477 (25,000)17,603 269,081 82269,081 (25,000)17,086 261,166 83261,166 (25,000)16,532 252,698 84252,698 (25,000)15,939 243,637 85243,637 (25,000)15,305 233,941 86233,941 (25,000)14,626 223,567 87223,567 (25,000)13,900 212,467 88212,467 (25,000)13,123 200,590 89200,590 (25,000)12,291 187,881 90187,881 (25,000)11,402 174,282 91174,282 (25,000)10,450 159,732 92159,732 (25,000)9,431 144,163 93144,163 (25,000)8,341 127,505 94127,505 (25,000)7,175 109,680 95109,680 (25,000)5,928 90,608