The end of the first six months after his retirement

Assignment Help Business Economics
Reference no: EM131194394

A man is planning to retire in 20 years. He can deposit money for his retirement at 12% interest rate compounded monthly. It is estimated that the future general inflation (f) rate will be 4% compounded annually. What deposit must be made each month until the man retires (i.e., end of year 20 from now) so that he can make annual withdrawals of $20,000 in terms of today's dollars over the 15 years following his retirement? Assume that his first withdrawal occurs at the end of the first six months after his retirement.?

Reference no: EM131194394

Questions Cloud

Most admired-people management and quality of products : Each year Fortune magazine publishes a "Most Admired" list of the top companies in the United States. Firms are rated on these eight dimensions: innovativeness, quality of management, long-term investment value, social responsibility to the community..
Discuss other marketing research related activities : For airports that attract many business travelers, marketing research related to the size of nearby businesses and any new development can prove very successful to assess future demands. Discuss other marketing research related activities that could ..
Plot profit for first seven teddy bears that alex produces : Suppose Alex runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $25 per teddy bear. Use the blue points (circle symbol) to plot total revenue and the green poin..
What is the equivalent single-sum amount at the present time : A father wants to save for his eight-year-old son's college expenses. The son will enter college 10 years from now. An annual amount of $30,000 in constant dollars will be required to support the son's college expenses for four years. What is the equ..
The end of the first six months after his retirement : A man is planning to retire in 20 years. He can deposit money for his retirement at 12% interest rate compounded monthly. It is estimated that the future general inflation (f) rate will be 4% compounded annually. Assume that his first withdrawal occu..
According to BLS-Why did the prices of other items change : According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..
Example of activity that generates positive externalities : Primary School education is often used as an example of an activity that generates positive externalities. Let's assume that in a particular country, all primary education is provided by the private sector and private demand is perfectly elastic at a..
Checkable deposits into interest bearing MMDAs : In recent years Sweep Programs have grown throughout the U.S. With this financial innovation, banks automatically sweep excess funds from their customers’ checkable deposits into interest bearing MMDAs, which are part of savings and time deposits. Us..

Reviews

Write a Review

Business Economics Questions & Answers

  Historical data suggests that a trend toward

Historical data suggests that a trend toward ________ natural employment ________.

  Subsequent was not a contributing cause of the decline

Which one of the subsequent was not a contributing cause of the decline in investment also thus the recessionary expenditure

  Time value of money–present value-which firm is liquid

Which firm is the most liquid? Why? (Justify your answer with at least two ratios). Which firm is the most profitable? (Time Value of Money – Present Value) You have figured out that you will need $800,000 to finance your child’s college education wh..

  Percentage change in price and price elasticity of demand

Average visit per week equal 640 when the copayment is $40 and 360 when the copayment is $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage c..

  Demand for plastic surgery is price inelastic

Assume the demand for plastic surgery is price inelastic. Are the following statements true of false? Explain. When the price of plastic surgery increases, the number of operations decreases. The percentage change in the price of plastic surgery is l..

  The manager is in a short-run or long-run situation

For each of the following decisions determine whether the manager is in a short-run or long-run situation.

  Policy initiatives is directly connected to growth factors

Some long term projections show US GDP growth of 2.5% per annum, which is below the historical trend of 3.25%. Based on the long run growth equation what three policy initiatives would you recommend that the US government undertake that would have be..

  What is an equilibrium price and quantity

What is an equilibrium price and quantity? Imagine that as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium. How will the new equilibrium alter output? How will it alter the pr..

  Use supply and demand curves

Use supply and demand curves to help you determine the impact that each of the following events has on the market for beef. New genetic engineering technology enables ranchers to raise healthier, heavier cattle, significantly reducing costs.

  What level of output should you produce in the short run

You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is C(Q) = 10 +2Q +.5(Q^2). What level of output should you produce in the short run? What price should you charge in the short run? Will you m..

  Economic policy with regard to twin goals may be measured

The success or failure of economic policy with regard to the twin goals may be measured by the

  Aggregate supply and aggregate demand curves

In Japan during the first half of 2000, the Bank of Japan kept interest rates at a near zero level in an attempt to stimulate demand. In addition, the government passed a substantial increase in government expenditure and cut taxes. Slowly, Japanese ..

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