Question regarding the retirement goal

Assignment Help Business Management
Reference no: EM131105241

John Adams is the CEO of a nursing home in San Jose. He is now 50 years old and plans to retire in 10 years. He expects to live for 25 years after he retires, that is, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $40,000 has today (he realizes that the real value of his retirement income will decline year by year after he retires). His retirement income will begin the day he retires, 10 years from today, and he will then get 24 additional annual payments. Inflation is expected to be 5 percent per year for 10 years (ignore inflation after John retires); he currently has $100,000 saved up, and he expects to earn a return on his savings of 8% per year, annual compounding. To the nearest dollar, how much must he save during each of the next 10 years (with deposits being made at the end of each year) to meet his retirement goal? (Hint: the inflation rate 5 % per year is used only to calculate desired retirement income.)

Reference no: EM131105241

Questions Cloud

Design a bethe hole coupler of the type : Design a Bethe hole coupler of the type shown in Figure 7.16b for a Ku-band waveguide operating at 17 GHz. The required coupling is 30 dB.
A systems analyst working for zeppelin industries : You are a Systems Analyst working for Zeppelin Industries Inc. Many of the software projects your company attempts to deliver are failing or have already failed. The owner of the company wants you to provide a new strategy to change the way projects ..
Analyze the financial strength of a company : We used different ratios to analyze the financial strength of a company. We know that a company needs to have sufficient cash and sustainable income/cash flows from operations in order to service its debt, especially long-term debt.
Briefly describe the religious beliefs of pre-islamic mecca : List three reasons why Muhammad's teachings evoked strong opposition from the Meccans. (Focus on the leadership, social and family structure, identity, and religion of pre-Islamic Arabia. How Muhammad's prophethood would threaten the status quo).
Question regarding the retirement goal : To the nearest dollar, how much must he save during each of the next 10 years (with deposits being made at the end of each year) to meet his retirement goal? (Hint: the inflation rate 5 % per year is used only to calculate desired retirement incom..
Design a five-hole directional coupler in a ku-band : Use round apertures centered across the broad wall of the waveguides.
What are some other purposes artifacts and site might have : Using your imagination, what are some other purposes the artifacts and site might have? What conclusions can you draw about the origin of the artifacts, their use, and the purpose of the site?
Identify the method that is used to track inventory : Use the Internet to research the annual report for at least two (2) merchandising companies. Identify the method that is used to track inventory. Next, watch A. Mursau's video:
Prepare a corrected retained earnings statement : Prepare a corrected retained earnings statement. LeClair Corp. normally sells investments of the type mentioned above.

Reviews

Write a Review

Business Management Questions & Answers

  Determine periodic cash inflows from the lessee

1. From the following statements, identify the steps invovlved in a lease analysis from a lessor's perspective. CHECK ALL THAT APPLY, MORE THEN ONE ANSWER CAN BE CORRECT a. Determine periodic cash inflows from the lessee b. Determine the invoice pr..

  Defines leadership and management

Defines leadership and management. Defends or criticizes the view that leadership and management are different concepts. Gives specific examples that support your position. Discusses the implications of your general leadership views. In addition to t..

  Show important information about restructuring

Important information about Restructuring - "Restructuring" is a popular management technique in recent business experience within the United States.

  Organizational related to culture questionshow would you

organizational related to culture questionshow would you define organizational culture?what are the elements of

  Explain under what circumstances damage of property

All of us turn our personal property over to the care of others- a dry cleaners a parking lot, storage. Under what circumstances are the bailees (the holders of your goods) responsible for the loss or damage of your property?

  Prepare a paper analyzing, describing, and critiquing

Prepare a paper analyzing, describing, and critiquing terrorism based on:the participants, victims, causes, geographic region(s) affected,•applicable transportation routes,•major groups or countries participating,

  1 discuss the value in determining total cost of buying or

1. discuss the value in determining total cost of buying or owning a product or service and identify major components

  Demand management and forecasting in business

Analyze the various techniques of forecasting and explain which would be appropriate or inappropriate to a manufacturing enterprise

  Describing the change in management approach

Describing the change management approach and recommended action steps you would advise for minimizing adverse impact on the organization and its people.

  What factors influence the price of a product

1. What factors influence the price of a product? 2. How do the basic methods of distribution affect advertising?

  Targeted the low-income consumers

This switch was more than likely a collaboration between the government of Brazil and predatory merchant MNC's like McCann World Group that targeted the low-income consumers.

  How did essilor develop the global end-to-end supply chain?

How did Essilor develop the global end-to-end supply chain?

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