1. I am 30 years old. I plan to retire in 50 years. I am self-employed. I save v
ID: 2659091 • Letter: 1
Question
1. I am 30 years old. I plan to retire in 50 years. I am self-employed. I save via an IRA. I save $200 per month. The funds in the IRA are invested in the S&P 500 ETF. The stock symbol for the ETF is SPY. If the ETF appreciates at an average rate of 4% what will be the nominal value of the SPY at your retirement age?
a)381,871 b)871,243 c)324,000 d)324,751
2. How much will I have to save beginning today if interest is paid at the end of each year and is compounded annually? I plan to save for for 45 years at which time I will retire. My target is to have $2 million dollars by the time I retire. Assume an investment rate of 4% .
a)17,524.91 b)18,232.22 c)22,344.10 d)16,524.91
3.You are 25 years old. You plan to work for another 45 years. You are in the 25% tax bracket. Your current salary is $45,000 and you expect it to increase by 5% per year until you retire. You are going to deposit 5% of your salary each year in a 401-K plan that invests in the Standard and Poor
Explanation / Answer
1 -A
2- B
4 - False Because A variable annuity is higher risky than a fixed annuity to the annuitant
5 - True
6 - B
7 -True
8 - C
9 - False
10 -B
11- true
12 B
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.