FIN 402 Week 1 Assignment Case Problem 1.2 , 2.1 , 2.2 , 3.1 , 12.1
will have $ 1.50 by age 62 ; if she leaves the money invested until age 65 , she will have $ 1.79 for each dollar invested today .
Questions a . Assume that Carolyn places currently available funds in the savings account . Determine the amount of money Carolyn will have available at retirement once she sells her house if she retires at ( 1 ) age 62 and ( 2 ) age 65 . b . Using the results from item a , determine the level of annual income that will be provided to Carolyn through purchase of an annuity at ( 1 ) age 62 and ( 2 ) age 65 . c . With the results found in the preceding questions , determine the total annual retirement income Carolyn will have if she retires at ( 1 ) age 62 and ( 2 ) age 65 . d . From your findings , do you think Carolyn will be able to achieve her long-run financial goal by retiring at ( 1 ) age 62 or ( 2 ) age 65 ? Explain . e . Evaluate Carolyn ’ s investment plan in terms of her use of a savings account and an annuity rather than other investments . Comment on the risk and return characteristics of her plan . What recommendations might you offer Carolyn ? Be specific . ============================================
FIN 402 Week 1 Assignment Case Problem 1.2 , 2.1 , 2.2 , 3.1 , 12.1
For more course tutorials visit www . uophelp . com