Provided for retirement income

Assignment Help Business Economics
Reference no: EM131197625

Mr. Jones intends to retire in 20 years at the age of 65. As yet he has not provided for retirement income, and he wants to set up a periodic savings plan to do this. If he makes equal annual payments into a savings account that pays 4% interest per year, how large must his payments be to ensure that after retirement he will be able to draw $30,000 per year from this account until he is 80?

Reference no: EM131197625

Questions Cloud

What is the return on stockholders equity : Calculating and Using Ratios 1. If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, which ratios would each group be most interested in, and for what reasons? What is the return on assets? What is the return on ..
Design risky portfolio based on two stocks : An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 15% and a standard deviation of return of 29%. Stock B has an expected return of 10% and a standard deviation of return of 14%. The correlation c..
Write the capstone business plan : How to create a business plan for a public company like Wal-Mart, Delta, Pepsi, Disney, Coca-Cola Etc. In one Word document, you will submit a 1 page proposal on each topic stating rationale and why it is a relevant topic on which to write the capsto..
What is this grand prize really worth : A lottery claims its grand prize is $10 million, payable over 5 years at $2,000,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use an interest rate of 6%. Need to show formulas in excel.
Provided for retirement income : Mr. Jones intends to retire in 20 years at the age of 65. As yet he has not provided for retirement income, and he wants to set up a periodic savings plan to do this. If he makes equal annual payments into a savings account that pays 4% interest per ..
Golden opportunity-what is the irr for the gold mine : The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, “This is a golden opportunity.” The mine will cost $3,600,000 to open and will have an economic life of 11 years. What is the IRR fo..
Retirement fund-what is the required semiannual payment : Suppose that you are the manager of a newly formed retirement fund. You are to set up a series of semiannual payments to accumulate a sum of $1,000,000 in ten years. You assume that the appropriate interest rate for the period is 6 percent annual, co..
Equivalence for repeated cash flows : A student is buying a new car. The car’s price is $19,500, the sales tax is 8%, and the title, license, and registration is $650 to be paid in cash. Instead of buying the car now, the student has decided to save money in equal monthly amounts for 48 ..
The patient protection and affordable care act limits : The Patient Protection and Affordable Care Act limits the extent to which insurers may consider age in establishing rates. The results are higher premiums for the younger insured and lower premiums for the older insured.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Role of government in regulating monopolies or oligopolies

How can large companies afford to lower the price of goods in a competitive market? A company’s ability to raise its price without losing its entire market is an example of market power. One of the most important of these is economies of scale. How d..

  Tax-policy model assumes no autonomous tax

Tax-policy model assumes no autonomous tax.

  What would your optimal production quantity be

You are the oil minister of one of 5 key OPEC countries. The world demand for oil can be reduced to Q = 100 – p and therefore p = 100 – Q (where p is dollars and Q is in millions of barrels/day). You are considering cheating on the rest of the cartel..

  Economy experiences a one-time increase in productivity

When an economy experiences a one-time increase in productivity, there is an immediate increase in A) the saving rate B) consumption per worker C) the capital-labor ratio D) the depreciation rate

  Insurance companies can reduce the moral hazard problem

One way that insurance companies can reduce the moral hazard problem is to:

  Successfully used to develop new software program

Agile project management was originally developed to do software development. Could a traditional process be successfully used to develop a new software program? Why or why not? Could an Agile methodology be used to build a strip mall in your home to..

  Evidence and Conclusions-Hypotheses

When Seth told Anita, "Your plan for purr semester project is not going to work." she snapped back with, "I don't hear you coming up with anything better." When he asked Anita about the incident later, she explained that PMS (premenstrual syndrome) h..

  Using maximum payoff is medical treatment versus prevention

A classic example of decision analysis using maximum payoff is medical treatment versus prevention. Many healthcare organizations and professional groups face this difficult decision. Describe the process of coming to a decision about whether to scre..

  Economy is in recession and faces relatively high inflation

Suppose the U.S. economy is in a recession and faces relatively high inflation. List the twin problems which policymakers face. List the monetary policy approaches the Fed could take to resolve each problem (i.e, do not list the policy tools—just des..

  Consider a closed economy and a small open economy

Consider a closed economy and a small open economy. Derive the goods market equilibrium for each economy numerically and graphically. Be sure to explain what you are doing.

  How to interpret the stated elasticity for athletic shoes

Historical data suggests that in the athletic shoe industry, the price elasticity for shoes is approximately -0.67. Explain what price elasticity is, and how to interpret the stated elasticity for athletic shoes of -0.67. Using the price of $100 and ..

  Government is considering imposing taxes on the sellers

"The government is considering imposing taxes on the sellers of certain classes of products. The first tax they are considering is a tax on 2% milk. The second is a tax on all dairy products. Since food is a necessity, would it see the higher sticker..

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