Questions from Personal Finance

Q: Profit Sharing. Cedrick works for an employer that has a profit

Profit Sharing. Cedrick works for an employer that has a profit sharing retirement system. Assuming Cedrick made $133,000 in 2018, what is the maximum amount his employer can contribute to his retirem...

Q: Retirement Planning. Tilly would like to invest $2,500

Retirement Planning. Tilly would like to invest $2,500 in before-tax income each year in a retirement account or in stock investments outside the retirement account. Tilly likes the stock investments...

Q: Retirement Account Withdrawal. In need of extra cash, Troy and

Retirement Account Withdrawal. In need of extra cash, Troy and Lilly decide to withdraw $8,000 from their traditional IRAs. They are both 40 years old. They are in a 24% marginal tax bracket. What wil...

Q: Employer Match. Refer to problem 3. How much money will

Employer Match. Refer to problem 3. How much money will Judy have at retirement if her employer matches her contributions? Data from Problem 3: Investment Value. Judy pays off her car loan and now mu...

Q: Estimating the Annuity Amount. Amy and Vince want to save $

Estimating the Annuity Amount. Amy and Vince want to save $7,000 so that they can take a trip to Europe in four years. How much must they save each month to have the money they need if they can get 3%...

Q: Investment Value. Judy believes that another benefit of investing the extra

Investment Value. Judy believes that another benefit of investing the extra $3,648 in her employer sponsored retirement plan is the tax savings. Judy is in a 24% marginal tax bracket (when considering...

Q: Retirement Savings. Miguel, a recent 22-year-old

Retirement Savings. Miguel, a recent 22-year-old college graduate, wants to retire a millionaire. How much will he need to set aside annually to achieve his goal, assuming he plans to retire at age 67...

Q: Estimating Debt after Graduation. Mason selected a private university to attend

Estimating Debt after Graduation. Mason selected a private university to attend. His tuition, room and board, and other costs were $47,000 per year for four years. His brother Kage attended a public i...

Q: Estimating Savings. Julia brings home $1,800 per month

Estimating Savings. Julia brings home $1,800 per month after taxes. Julia’s rent is $650 per month, her utilities are $100 per month, and her car payment is $210 per month. Julia is currently paying $...

Q: Future Value. Sandra wants to deposit $100 each year for

Future Value. Sandra wants to deposit $100 each year for her son. If she places it in an investment account that averages a 5% annual return, what amount will be in the account in twenty years? How mu...