Business > EXAM > BUSI 352 Quiz 5 with Answers Liberty University GradeAplus (All)

BUSI 352 Quiz 5 with Answers Liberty University GradeAplus

Document Content and Description Below

Question 1 Why is inflation important to consider in retirement planning? Question 2 David, age 52, has come to you for help in planning his retirement. He works for a bank, where he earns ... $60,000. David would like to retire at age 62. He has consistently earned 8% on his investments and inflation has averaged 3%. Assuming he is expected to live until age 95 and he has a wage replacement ratio of 80%, how much more will David need at retirement to have the same amount at his death as he will have at his retirement? Question 3 Shannon is planning for her retirement. She is currently 35 years old and plans to retire at age 60 and live until age 95. Shannon currently earns $100,000 per year and anticipates needing 80% of her income during retirement. She anticipates Social Security will provide her with $15,000 per year leaving her with required savings to provide $65,000 ($100,000 x 0.80 - $15,000) annually during retirement. She believes she can earn 11% on her investments and inflation will be 2% per year. Assume Shannon would like to have the same purchasing power in retirement savings at age 95, as she does at age 60, when she retires. How much must Shannon save at the end of each year, if she wants to make her last savings payment at age 60 to meet her retirement goal, assuming she wants to maintain the original purchasing power of her capital balance? Question 4 Rick would like to retire in 11 years at the age of 66. He would like to have sufficient retirement assets to allow him to withdraw 90% of his current income, less Social Security, at the beginning of each year. He expects to receive $24,000 per year from Social Security in today’s dollars. Rick is conservative and assumes that he will only earn 9% on his investments, that inflation will be 4% per year and that he will live to be 106 years old. If Rick currently earns $150,000, how much does he need at retirement? Question 5 Jane has the following expenditures during the current year. 1- Health Care $950 2- Travel $800 3- Savings $3,800 4- Gifts to Grandchildren $1,400 Which of these expenditures would you expect to decrease during Jane’s retirement? Question 6 Wilber, age 25, is hoping to retire at age 60. He expects to live until age 90. He anticipates needing $45,000 per year in today’s dollars during retirement. Tyrone can earn a 12% rate of return and he expects inflation to be 4%. How much must Wilber save, at the beginning of each year, to meet his retirement goal? Question 7 David, age 52, has come to you for help in planning his retirement. He works for an insurance company, where he earns $60,000. David would like to retire at age 62. He has consistently earned 8% on his investments and inflation has averaged 3%. Assuming he is expected to live until age 95 and he has a wage replacement ratio of 80%, how much will David need to have accumulated as of the day he retires to adequately provide for his retirement lifestyle? Question 8 Phil and Sherry, both age 40, have $80,000 of combined retirement assets. They both expect to retire at the age of 65 with a life expectancy of 100 years old. They expect to earn 10% on the assets within their retirement accounts before retirement and 8% during their retirement. If they did not make any additional contributions to their account and they receive a fixed monthly annuity benefit for life, what is the monthly benefit (annuity due) amount they will receive during retirement? Question 9 David, age 52, has come to you for help in planning his retirement. He works for a bank, where he earns $60,000. David would like to retire at age 62. He has consistently earned 8% on his investments and inflation has averaged 3%. Assuming he is expected to live until age 95 and he has a wage replacement ratio of 80%, approximately how much must David save at the end of each year, from now until retirement, to provide him with the necessary capital balance assuming he has a zero balance today? Question 10 Work life expectancy (WLE) is the period of time a person in in the work force. This is typically: Question 11 Sarah, a self-employed mechanical engineer, currently earns $100,000 per year. Sarah has always been a self-proclaimed saver, and saves 25% per year of her Schedule C net income. Assume Sarah paid $13,000 in Social Security taxes. Tiffany plans to pay off her home mortgage at retirement and live debt free. She currently spends $25,000 per year on her mortgage. What do you expect Sarah’s wage replacement ratio to be at retirement based on the above information? Question 12 Which of the following expenses typically decrease during retirement? Question 13 Charlie would like to determine his financial needs during retirement. All of the following are expenditures he might eliminate in his retirement needs calculation except: Question 14 Ted and his twin sister Emma, both age 25, each believe they have the superior savings plan. Ted saved $5,000 at the end of each year for ten years then let his money grow for 30 years. Emma on the other hand waited 10 years then began saving $5,000 at the end of each year for 30 years. They both earned 9% on their investment and are 65 years old today and ready to retire. Which of the following statements is correct? Question 15 The capital preservation model assumes that at life expectancy the client has exactly the same spending power as he did at the beginning of retirement. [Show More]

Last updated: 1 year ago

Preview 1 out of 4 pages

Reviews( 0 )

Recommended For You

 Biology> EXAM > Biol 101 Quiz 5 with answers (88%) | TOP RATED PAPER. (All)

preview
Biol 101 Quiz 5 with answers (88%) | TOP RATED PAPER.

Incorrect answers are mark with red DNA REPLICATION Question 1 (5 points) If a strand of DNA of sequence 5’- AATAGCGCGGTATTC-3’ is replicated, which of the following accurately represents the n...

By A+ Solutions , Uploaded: May 11, 2022

$15

 SCIENCE 101> EXAM > SCIN131 Science Quiz 5 WITH CORRECT SOLUTIONS (All)

preview
SCIN131 Science Quiz 5 WITH CORRECT SOLUTIONS

SCIN131 Science Quiz 5 WITH CORRECT SOLUTIONS

By Grade A Plus , Uploaded: Dec 15, 2021

$13.5

 Education> EXAM > AVIA 245 Quiz 5 With Correct Answers. Latest 2021 (All)

preview
AVIA 245 Quiz 5 With Correct Answers. Latest 2021

AVIA 245 Quiz 5 With Correct Answers. Latest 2021.● Question 1 5 out of 5 points How does Dr. Morrison define Just Culture? Selected Answer: He deals with people fairly when errors...

By Quality Suppliers , Uploaded: Aug 25, 2021

$10

 *NURSING> EXAM > GLST 220 Quiz 2 Answers Liberty University (All)

preview
GLST 220 Quiz 2 Answers Liberty University

GLST 220 Quiz 2 Answers Liberty University

By ExpertAnswer , Uploaded: May 13, 2021

$6.5

 *NURSING> EXAM > CSIS 340 Final Exam.Review Test Submission Questions and Answers Liberty University (All)

preview
CSIS 340 Final Exam.Review Test Submission Questions and Answers Liberty University

CSIS 340 Final Exam.Review Test Submission Questions and Answers Liberty University

By ExpertAnswer , Uploaded: Apr 22, 2021

$11

 *NURSING> EXAM > CSIS 340 Final Exam Questions and Answers Liberty University GRADED A+ (All)

preview
CSIS 340 Final Exam Questions and Answers Liberty University GRADED A+

CSIS 340 Final Exam Questions and Answers Liberty UniversityCSIS 340 Final Exam Questions and Answers Liberty University 1. The _____ domain connects an organizations private network to the Internet?...

By ExpertAnswer , Uploaded: Apr 22, 2021

$11

 *NURSING> EXAM > CHEM 120 Quiz 5 With Correct Answers (All)

preview
CHEM 120 Quiz 5 With Correct Answers

CHEM 120 Quiz 5 elaboration tips

By TipsMaster01 , Uploaded: Mar 15, 2021

$10.5

 Philosophy> EXAM > Phil 201 Week 1 Quiz test questions and answers Liberty University (All)

preview
Phil 201 Week 1 Quiz test questions and answers Liberty University

Phil 201 Week 1 Quiz test questions and answers Liberty University Question 1 3 out of 3 points It is possible to be completely rational and justified and still be wrong. Question...

By YongSam , Uploaded: Feb 11, 2021

$12

 Mathematics> EXAM > MATH 115__Week 3 __TEST_1_Copy Questions and Answers Liberty University (All)

preview
MATH 115__Week 3 __TEST_1_Copy Questions and Answers Liberty University

MATH 115__Week 3 __TEST_1_Copy Questions and Answers Liberty University Week 3 __TEST_1_Copy

By alvin , Uploaded: Dec 26, 2020

$9

 *NURSING> EXAM > NURS 6501 Quiz 5 with Answers Walden University (Grade A+plus) | NURS6501 Quiz 5 with Answers (Grade A+plus) (All)

preview
NURS 6501 Quiz 5 with Answers Walden University (Grade A+plus) | NURS6501 Quiz 5 with Answers (Grade A+plus)

NURS 6501 Quiz 5 with Answers Walden University (Grade A+plus) • Question 1 1 out of 1 points A newborn child has a murmur and cyanosis. An echocardiogram reveals that the tricuspid valve f...

By Martin Freeman , Uploaded: Jul 20, 2020

$8.5

$10.00

Add to cart

Instant download

Can't find what you want? Try our AI powered Search

OR

GET ASSIGNMENT HELP
35
0

Document information


Connected school, study & course



About the document


Uploaded On

Feb 26, 2020

Number of pages

4

Written in

Seller


seller-icon
GradeAplus

Member since 4 years

9 Documents Sold


Additional information

This document has been written for:

Uploaded

Feb 26, 2020

Downloads

 0

Views

 35

Document Keyword Tags

THE BEST STUDY GUIDES

Avoid resits and achieve higher grades with the best study guides, textbook notes, and class notes written by your fellow students

custom preview

Avoid examination resits

Your fellow students know the appropriate material to use to deliver high quality content. With this great service and assistance from fellow students, you can become well prepared and avoid having to resits exams.

custom preview

Get the best grades

Your fellow student knows the best materials to research on and use. This guarantee you the best grades in your examination. Your fellow students use high quality materials, textbooks and notes to ensure high quality

custom preview

Earn from your notes

Get paid by selling your notes and study materials to other students. Earn alot of cash and help other students in study by providing them with appropriate and high quality study materials.


$10.00

WHAT STUDENTS SAY ABOUT US


What is Browsegrades

In Browsegrades, a student can earn by offering help to other student. Students can help other students with materials by upploading their notes and earn money.

We are here to help

We're available through e-mail, Twitter, Facebook, and live chat.
 FAQ
 Questions? Leave a message!

Follow us on
 Twitter

Copyright © Browsegrades · High quality services·