Making equal monthly deposits into your account

Assignment Help Financial Management

Reference no: EM131027020

You are planning to retire and have decided: you will retire in 33 years and would like to have $7,000 per month as retirement income for 30 years of retirement. You have access to an account that earns a 6% rate of return. How much will you need to have when you retire to be able to withdraw the desired $7,000 per month during your years of retirement? If you plan to save by making equal monthly deposits into your account from now until you retire, how much does that deposit have to be?

Reference no: EM131027020

Questions Cloud

What is the required rate of return : Janlea Co. had total net earnings of $127,000 this past year and paid out 30 percent of those earnings in dividends. There are 100,000 shares of stock outstanding at a current market price of $11.62 a share. If the dividend growth rate is 5.6 percent..

Statements related to preferred stock : Which of the following statements related to preferred stock is correct? Preferred shareholders normally receive one vote per share of stock owned. Preferred shareholders determine the outcome of any election that involves a proxy fight. Preferred sh..

Dividends are expected-what is current value of one share : Nu-Tech stock's last annual dividend was $1.10 a share. Dividends are expected to increase by 25 percent for the next two years and then increase at a constant 4 percent annually. The required return on this high-risk stock is 18.5 percent. What is t..

What was the rate of price appreciation on the stock : Grenville common stock had a 12.25 percent rate of return last year. The fixed annual dividend is $.65 a share, which equates to a dividend yield of 1.6 percent. What was the rate of price appreciation on the stock?

Making equal monthly deposits into your account : You are planning to retire and have decided: you will retire in 33 years and would like to have $7,000 per month as retirement income for 30 years of retirement. How much will you need to have when you retire to be able to withdraw the desired $7,000..

What is the amount of each interest payment : The semiannual, 8-year bonds of Alto Music are selling at par and have an effective annual yield of 8.6285 percent. What is the amount of each interest payment if the face value of the bonds is $1,000? Format to 6 decimal places.

What is the current yield and yield to maturity : BMW issued 20 year $1,000 bonds in 2014 with an annual coupon rate of 7.45%. In 2016 after the coupon for 2016 is paid, that bond can be purchased for $1,285. If you bought this bond, what is the current yield and yield to maturity?

Expected return on the portfolio : A portfolio is entirely invested into Bruno's Gold Mining Equity, which is expected to return 18%, and Alfred's Inc. bonds, which are expected to return 6%. Three quarters of the funds are invested in Bruno's and the rest in Alfred's. What is the exp..

Determinants of interest rates : Suppose you and most other investors expect the inflation rate to be 7% next year, to fall to 5% during the following year, and then to remain at a rate of 3% thereafter. Calculate the interest rate on 2-year Treasury securities. Calculate the intere..

User Account

All Pages