Continue to accrue interest on the remaining balance

Assignment Help Financial Management
Reference no: EM131010939

Assume that you have 40 years until retirement and have just started your first job. Once you retire, you anticipate that you will live for 30 additional years. Assume that you will require $100,000 per year to support yourself in retirement. All investments that you make will go into and stay in an account that returns 8% per year (i.e. however much you have at retirement will sit in that account and continue to accrue interest on the remaining balance.) How much will you have to save each year over the next 40 years to meet your goal? Assume that your first investment occurs at the end of your first year of work (yr 1) and that the last of your 40 investments occurs on the last day that you are employed (yr 40). For simplicity, assume that your first withdrawal is at the end of your first retirement year (yr 41)

Reference no: EM131010939

What is the present value of this stream of cash flows

The state lottery's million-dollar pay-out provides for $1.2 million to be paid over 20 installments of $60,000 per payment. The first $60,000 payment is made immediately, and

Present value of the annuity

A 20-year annuity pays $2,100 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 p

What will be accounting and NPV break-even levels of sales

Modern Artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs are $1,100 per year and variable costs are $60 per unit. What will be the ac

How many children have to come to learning in lumberton

Let's Learn! Child Center operates from Monday through Friday. The center provides childcare and educational services for disadvantaged children between the ages of nine month

Market capitalization rate

Dolphin Killers Brand Tuna has a market capitalization rate of 10% and plans to make annual dividend payments for the next three years of $1.50, $1.60, and $1.70, with the fir

Assume a healthcare organization sold bonds

Assume a healthcare organization sold bonds that have a twelve-year maturity, a 14% coupon rate with annual payments, and a $1,000 par value. Suppose that three years after th

Loan calls for equal annual payments

Prepare an amortization schedule for a 5 year loan of 30,000. The interest rate is 10% per year and the loan calls for equal annual payments. Complete table for first 2 years

What is the implied interest rate for the first six months

Suppose the spot price of gold is $1200 per ounce. The futures price for delivery in six months is $1208, while the futures price for delivery in one year is $1214. The intere


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd