FIN 502 Study Guide - Final Guide: Defined Benefit Pension Plan, Tax Rate, Current Yield

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marooncockroach488

7 Sep 2017

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Matt"s i(cid:374)(cid:272)o(cid:373)e for (cid:1006)(cid:1004)(cid:1005)(cid:1008) was (cid:1009)(cid:1004),(cid:1004)(cid:1004)(cid:1004) a(cid:374)d he pla(cid:374)s to retire o(cid:374) ju(cid:374)e (cid:1007)(cid:1004)th 2015. Fin502 fin ended june 30th 2016 is based on his 2014 income. Assume oas is ,500 and the clawback threshold is. How (cid:373)u(cid:272)h of matt"s oas will (cid:271)e (cid:272)lawed (cid:271)a(cid:272)k for the (cid:455)ear e(cid:374)ded. June 30, 2016 if he takes the oas when he retires: in retirement, cindy estimates that her average tax rate will be 20% and her marginal rate will be 26%. If she anticipates a nominal rate of return of 7%, what is her real after tax rate of return if she expects inflation to be. 2. 5%: mark has worked for we-love-our-company for 37 years. His defined benefit pension plan (dbpp) provides a benefit of 2% of the average of the last 3 years for every year of service to a maximum of 35 years. In his last year he earned and his three-year average when he retired was .

Related Questions

Required: For each of the following questions please use the Future/Present Value tables in the text showing your calculations. Do not use excel, please show formulas and full calculations.

-The Andrew Company has decided to issue a 10 year, 7%, $3,000,000 term bond on June 1, 2017, paying annual interest with the first interest payment due June 1, 2018. At the time the market rate for similar bonds is 7%. You have been asked to establish the selling price of the bond.

-Jake is saving for his college education. He decides to deposit $18,000 at the end of each year for a 7 year period earning an annual interest rate of 9% per year. He will need $155,000 for his tuition when he begins school in 7 years. Will he have enough? What will be the shortfall or excess amount?

-Sam would like to retire. He wants to withdraw $23,000 at the end of each year for the next 20 years, after which he assumes that he will have left this earth. How much must Sam have in his retirement account at the time he retires if he is able to earn 6% on his retirement fund?

-Sam as question # 4 above, but Sam now wishes to withdraw the initial payment of the 1^st day of the year instead of the last day.

-Morgan decides to deposit a $21,000 gift from her grandmother into the bank. She will earn 8% annual interest compounded semi-annually. How much money will Morgan have 15 years from now?

jadecockroach272

An individual is currently 30 years old and she is planning her financial needs upon retirement. She will retire at age 65 (exactly 35 years from now) and she plans on funding 20 years of retirement with her investments. Ignore any social security payments and ignore any taxes. She made $108,000 last year and she estimates she will need 75% of her current income in today's dollars to live on when she retires. She believes that inflation will average 4 percent per year during her working years. (For simplicity we will ignore inflation during her retirement years). She will retire at age 65 and will begin drawing down her retirement annuity at age 65. She plans on making a total of 20 annual withdrawals after she retires. After she retires she believes she will be able to earn 6.5 percent per year. If she puts her money in a blended stock and bond portfolio now, she figures she can earn 11.5 percent per year until she retires.

byzantiumelk777

Patty Stacey deposits $2200 at the end of each of 5 years in an IRA. If she leaves the money that has accumulated in the IRA account for 25 additional years, how much is in her account at the end of the 30-year period? Assume an interest rate of 11%, compounded annually. (Round your answer to the nearest cent.)
$

(b) Suppose that Patty's husband delays starting an IRA for the first 10 years he works but then makes $2200 deposits at the end of each of the next 15 years. If the interest rate is 11%, compounded annually, and if he leaves the money in his account for 5 additional years, how much will be in his account at the end of the 30-year period? (Round your answer to the nearest cent.)
$

(c) Does Patty or her husband have more IRA money?

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FIN 502 Study Guide - Final Guide: Defined Benefit Pension Plan, Tax Rate, Current Yield

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