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Question 5 options:
| True | |
| False |
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- 1. Complete the following table showing effects of changes in retirement "risk variables" on periodic work-life retirement investment contributions required to meet a retirement need (assuming all else equal). Factor: Effect if factor increases: Effect if factor decreases: Inflation Rate Investment Return Rate Work Life Expectancy Retirement Life Expectancy Retirement LifestyleExcursions in Modern Mathematics chapter 10 Explain what is the difference between retirement savings formula and amortization formula.Q1) It is highly likely that the projected retirement income based on the replacement ratio method may not be sufficient to pay for retirement expenses if inflation rates are _________ wage growth rates.
- What is compounding? Question 21 options: The process of calculating the present value from the future value. Earning interest on interest The difference between present value and future value Earning interest over one periodWhich one is better in order to reach saving goals for retirement: Is it better to focus on stocks, bonds or both? What are the issues for capital gains versus issues of interest?Which of these will increase the present value of an amount to be received sometime in the future? Group of answer choices Increase in the discount rate. Increase in the time until the amount is received. Decrease in the interest rate Decrease in the future value
- As the rate of inflation increases, Group of answer choices interest rates decrease. purchasing power of a dollar increases. retirement plans have more difficulty meeting their goals. the cost of living goes down.The process of reinvesting interest earned to generate additional earnings over time is ________. A. compounding B. discounting C. annuity D. lump-sumWhat is the primary difference between an ordinary annuity and an annuity due? Group of answer choices ordinary annuity only relates to future values the timing of the periodic payment annuity due only relates to future values the interest rate
- Which of the following cannot be calculated? Select one: a. the interest rate on perpetuity given the present value and payment amount b. the present value of an annuity due c. the present value of a perpetuity d. the future value of a perpetuityHow can you estimate how much you need to save for retirement?How buyouts are similar to early retirement?
