Determining the retirement annuity

Assignment Help Finance Basics
Reference no: EM1329823

You wish to retire after 30 years, at which time you want to have accumulated enough money to receive an annuity of $60,000 a year for 22 years of retirement. During the period before retirement, you can earn 8% annually, and after retirement you can earn 6% on your money.

a) What annual contributions to the retirement fund will allow you to receive the $60,000 annually?

b) What annual contributions are required if the contributions are made at the beginning of each year?

Note: There are solutions within the database for this type of question however, each OTA uses a different formula to calculate and the answers appear to be different. I would like to know the steps I would take using a financial calculator.

Reference no: EM1329823

What is the npv of an investment with an outlay today

What is the NPV of an investment with an outlay today of $300, followed by expected cash inflows of $200, $200 and $400, received at the end of years 1 through 3, respective

Determine the expected rate of return on joness stock

Debt: Jones Industries borrows $600,000 for 10 years with an annual payment of $100,000. What is the expected interest rate (cost of debt)? Determine the expected rate of ret

The m&m tax mode

According to the M&M tax model, the value of a levered firm is equal to the value of an unlevered firm plus the tax shield from debt. What does this model imply about the firm

What is the dividend yield

The next dividend payment by Blue Cheese, Inc., will be $1.56 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently se

Process of stating the basic dilemma

What do we call the process of stating the basic dilemma and then developing other questions by progressively breaking down the original question into more specific ones?

Binomial option pricing model-black-scholes option pricing

If the Exchange rate is $0.66/DM, the strike price of a call option expiring in 3 months is $0.70/DM and the option premium is $0.06/DM, What is the intrinsic value of the o

How much retained earnings will it need to fund

The company forecasts that it would require $10 million to fund all of its profitable (that is, positive NPV) projects for the upcoming year.If Buena Terra follows the residua

Calculate the cash conversion cycle

Dan Barnes, financial manager of Ski Equipment Inc., is excited, but apprehensive. The company's founder recently sold his 51 percent controlling block of stock to Kent Koren,

Reviews

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