financial management assignment, Financial Management

You have just had your 30
birthday. You have two children. One will go to college 12 years
from now and require four yearly payments for college expenses of RM11,000, RM12,000,
RM13,000 and RM14,000. The second child will go to college 15 years from now and
require four yearly payments for college expenses of RM16,000, RM17,000, RM18,000 and
RM19,000. In addition, you plan to retire in 35 years. You want to be able to withdraw
RM50,000 per year from an account throughout your retirement. You expect to live 25 years
beyond retirement. The first withdrawal will occur on your 66
birthday. All savings earn a
13% of annual rate of return.
What equal annual amount must you save for each of the next 35 years in order to meet these
(Hint: Calculate present value of funds needed for college expenses for first child, second
child and for your retirement annuity and then determine the annual payments needed to meet
these goals.)
Show all relevant workings.
Posted Date: 10/13/2012 5:55:48 AM | Location : United States

Related Discussions:- financial management assignment, Assignment Help, Ask Question on financial management assignment, Get Answer, Expert's Help, financial management assignment Discussions

Write discussion on financial management assignment
Your posts are moderated
Related Questions
QUESTION The Managing Director of your firm is thinking aloud about an appropriate gearing level for the company: "The consultants I spoke to yesterday explained that some t

Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain. Bankers and another lenders use li

what is the criteria for a good international financial system

How are production limits used in practice to raise the prices of the following goods or services: (a) taxi rides, (b) drinks in a restaurant or bar, (c) wheat or

Explain the Cash and cash equivalents Cash and cash equivalents include: Bank and cash balances Short term investments that are highly liquid and can be converted

Q. Illustrate report on net present value? The NPV of a project is a positive $56000. This point to that using our cost of capital 10% as our discount rate the project is we

Q. Scope of the content of the finance function? 1) Estimating of the finance requirement: the first task of a finance manager is to estimate and short terms and long terms fin

Weak form level of efficiency This level states that share prices fully reflect information in historic share price movement and patterns (past information/historic information

Profit Maximisation Decision Criterion According to this approach, actions which increase profits must be undertaken and those that decrease profits are to be avoided. In speci

As an investment advisor, you have been approached by a group of professional investors (probably who already have a well-diversified portfolio). They are considering investing in