How much can you withdraw each year in your retirement

Assignment Help Finance Basics
Reference no: EM13262214

You are planning your retirement in 10 years. You currently have $170,000 in a bond account and $610,000 in a stock account. You plan to add $7,000 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 11 percent and the bond account will earn a return of 7.5 percent. When you retire, you plan to withdraw an equal amount for each of the next 25 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.75 percent.

Required:

How much can you withdraw each year in your retirement?

 

Reference no: EM13262214

Questions Cloud

What is the current yield on pks bonds : PK Software has 9 percent coupon bonds on the market with 25 years to maturity. The bonds make semiannual payments and currently sell for 111.75 percent of par.
What is the longest visible wavelength : Consult Interactive Solution 27.18 to review a model for solving this problem. what is the longest visible wavelength (in vacuum) for which the film will appear bright due to constructive interference
Rhetorical analysis : The Boston Terror Will Benefit the NRA, Hurt Control," was an article that I found on the internet. It was published April 19th, 2013. I located it on the Businessweek website, under the politics and policy section.
Compute the correlation coefficient of two channels : Compute the correlation coefficient of two channels with frequency separation of 100 kHz and temporal separation 5 ms. Assume that the maximum Doppler shift of the channels is f_d=kv=100Hz and the rms delay spread is S_tao=1 µs.
How much can you withdraw each year in your retirement : When you retire, you plan to withdraw an equal amount for each of the next 25 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.75 percent.
Find the average force on the truck driver from the seatbelt : Most of us know intuitively that in a head-on collision between a large dump truck and a subcompact car, you are better off being in the truck than in the car. Why is this, find the average force on the truck driver from the seatbelt
Write the second scenario similarly : Create two brief written scenarios, one demonstrating your level of learning of compounding and one demonstrating your level of learning of discounting. Attach them as one attachment in the Assignment site for Week Two titled "Compounding & Discou..
What device width is needed to ensure the minimum resistance : A switch is made with an n-channel MOS device in a technology for which oxide thickness is 20 nm, minimum channel length is 1 um, unCox = 100 uA/V2, and VTH = 0.8 V. The devices operates in deep triode (i.e. small VDS)
Define the temperature after the reaction : The temperature after the reaction is 25.23 C. If the density of final solution is 1.02 g/mL, calculate q, if the specific heat of the solution can be assumed to be equivalent to that of water.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What is the npv of the project

How sensitive is the NPV to changes in the price of the new smart phone?

  Find rate of return on the investment

The stock of Michelle Travel company is selling for 43.00 a share. You put in a limit buy order at 44 for one month. During the month, stock price declines to a low of 38.00,

  What is the legal limit on current dividends

Carnegie Mellon and Produce Co. has $197,000,000 in stockholders' equity. Forty million dollars is listed as common stock and the balance is in retained earnings. The firm has $265,000,000 in total assets and 2 percent of this value is in cash.

  Compute the incremental net income of the investment

The Best Manufacturing Corporation is planning a new investment. Financial projections for the investment are tabulated below. Cash flows are in $ thousands, and corporate tax rate is 34%.

  Non guaranteed residual value

Finance Here Sales and Service provides lease-based financing for its full line of commercial creators. Sales of generators are properly accounted for as operating sales-type leases.

  Required reserves and capital levels

Discuss and explain the effect of required reserves and capital levels on a bank's profitability.

  Information for financial analysis

Do you think that the explanatory notes, supplementary schedule, Management's Discussion and Analysis, 10-K filing, Auditor's report and Proxy statements provide more data for financial analysis.

  Determine buy or sell recommendation for stock

A company reports book value of shareholders equity of $850 million with 25 million shares outstanding. Those shares trade at 45 dollar each in the stock market.

  Journal entries and calcutaions for asset sales

An asset that was purchased in Feb. 2008 for $25,000 has been depreciating through straight line value method for the past 4 years.

  Objective type questions on value of the bond

Objective type questions on value of the Bond and Which of the following statement is CORRECT

  Determine the forward price of contract

You enter into a forward contract to buy a 10 year, zero-coupon bond that will be issued in one year.The face value of the bond is $1,000 , and the 1 year and 11 year spot interest rates are 4% per annum and 9% per annum,

  Calculate selling price on the margins provided

As the Marketing Manager for the Zig brand of microwave ovens in a large customer products company you must answer questions found below with following financial data regarding product.

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