Cancelled

Finance (TVM & bonds)

Hi this is finance assignment based on some calculation on total value of money (TVM) and bond... I am adding one question of TVM... There are total 7 question.

Dayna and Sam have come to the office of Pestano Personal Planning to discuss their long-range retirement goals. They want to retire in 20 years. They have $10,000 in savings now and they are still paying off their mortgage. They also want to save money to help their son and daughter with post-secondary education. For the next five years while they finish paying off the mortgage, they can save $5,000 per year for daughter Alpha’s education. She will start post-secondary at the start of year eight. In years 6 – 20 they can save $20,000 per annum because the mortgage will be paid off. They will allocate $5,000 of it in years 6 – 10 inclusive to savings for son Beta’s post-secondary education. He is expected to start at the beginning of year 11. The rest of the savings go towards their retirement. They both will have good pensions, but they expect they will want to draw an additional $15,000 per year from savings for 30 years in retirement. They also want to take a world tour in their first year of retirement that will require an additional $100,000 on top of their pensions and the $15,000 annual draw from savings.

Required

To solve this problem, planner Pestano assumes all annual savings and all retirement expenses occur at year-end. The world trip has to be paid for at the start of the year. He will invest their money for an expected return of 4% until they retire and an expected return of 3% after they retire. Pestano has converted all the numbers to real after-tax values, and hence you can ignore taxes and inflation. Pestano rounds all his answers to the nearest dollar.

a) Organize all the information on a time line. (2 marks)

b) How much do they give Alpha at the start of her post-secondary education? (3 marks)

c) How much do they give Beta at the start of his post-secondary education? (2 marks)

d) Do they save enough with this plan to meet their retirement goal? (13 marks)

Skills: Finance

See more: total finance, sam am, planning problem, long range goals, five dollar, bonds question tvm, alpha five, personal finance planning, finance planning, retirement, pestano, personal finance, finance plan, finance d, finance c, dayna, bond, question finance, end year tax return, paid time planner, paying dollar, top dollar 100, inflation, total mortgage, plan draw

About the Employer:
( 14 reviews ) Mississauga, Canada

Project ID: #2566668

6 freelancers are bidding on average $91 for this job

waqar21081974

I have the desired skills and expertise to complete the task. Looking forward to work with you on this task.

$100 CAD in 4 days
(18 Reviews)
4.8
rohitpithisaria

Hi... I would like to apply for the job.

$100 CAD in 3 days
(8 Reviews)
3.1
radhasekhar

Dear Sir I can complete all 7 questions as required by you

$60 CAD in 3 days
(3 Reviews)
2.6
bernieloitegui

Choose me for this project and you will have it done today.

$100 CAD in 0 days
(2 Reviews)
1.8
keyed

Hi there, I'm an Aussie living in Thailand, but more importantly for this project, I used to be a Financial Planner. I've recently completed another Fin. Planning related project for someone else for which I had to More

$125 CAD in 3 days
(0 Reviews)
0.0
vbexcel

Finance pro. MBA

$59 CAD in 1 day
(0 Reviews)
1.4