Your Perfect Assignment is Just a Click Away

Starting at $8.00 per Page

100% Original, Plagiarism Free, Customized to Your instructions!


FIN 310 Great Basin College Robin Retirement Worksheet

FIN 310 Great Basin College Robin Retirement Worksheet

Question Description

Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page.

Robin’s Retirement

[Note: This problem is an application of the principles learned in Chapter 3 that goes beyond the examples provided in the textbook. But please be assured that all of the principles that must be used for this problem are covered well in Chapter 3 of the textbook and the study guide for chapter 3. If you have any difficulties in understanding the details of the problem please ask the instructor or the tutor for clarifications.]

Robin is 25 years old today, and attends Small Peak College. She currently has a seasoned whole life insurance policy on her life which has a current cash value of $20,000. She is confident she can earn 4% annual interest for the foreseeable future in this policy, and all calculations should be based on this 4% annual rate of interest. She would like to know how much money she will need to set aside each month starting today until one month before her 75th birthday so that she can have a monthly income of $4,000 per month starting on her 75th birthday and continuing until the month before she dies on her 100th birthday. Said another way, she wants to start saving now, at the rate of 4% annual interest, by investing a monthly amount each month until one month before her 75th birthday. Then on her 75th birthday she will start withdrawing $4,000 per month until her money is all gone when she dies penniless on her 100th birthday.

Please work this problem in 5 steps as follows. Each part is worth 2 points:

1. How much cash value will she need to have in the policy so that she will be able to withdraw the $4,000 per month starting on her 75th birthday until the day she dies at age 100? __________________

2. How much will Robin need to add to her insurance policy each month starting on her 25th birthday so that she will have the amount you calculated in #1 above available on her 75th birthday? __________

3. What is the total of the dollar payments into the insurance policy during the 50 year period? _____________

4. What is the total of the dollar income that Robin will withdraw from the insurance policy in her 25 years of retirement? ___________

5. If you have done the above calculations correctly, your number for question #3 above is considerably less than your number for question #4 above. Provide a short explanation of how Robin can save such small amounts during her working years and then withdraw such relatively large amounts during her retirement years.

"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.