Time Value of Money, Corporate Finance

Assume that the average age of the worker is 25 years old. Typically, retirement is at 65. The firm provides a $2000 monthly payment for 25 years for retirees (i.e., 300 monthly payments). The first monthly payment is at age 65. Assume that the firm has already set aside $1,800 per worker to fund its pension liability. Determine the monthly contribution the firm must make to fully fund its liability. Assume the firm makes its first contribution to the pension fund at the end of each month until worker is 65. Assume an annual interest rate of 8%. Must show how to do this problem using your financial calculator. Now do this problem again, and assume that the monthly retirement payments increase by .25% per month.
Posted Date: 2/20/2013 5:59:33 PM | Location : United States







Related Discussions:- Time Value of Money, Assignment Help, Ask Question on Time Value of Money, Get Answer, Expert's Help, Time Value of Money Discussions

Write discussion on Time Value of Money
Your posts are moderated
Related Questions
#Minimum 100 words accepted#

GeKay is now considering issuing $3 million in debt, and paying $150,000 yearly in interest at 5%, that it would keep rolling over "forever" (in perpetuity). The proceeds would


Table gives the average MAPE, again for all SKUs with positive preview demand together (overall) and also per preview demand class. We remark that despite of the large differences


Jackson Corporation prepared the following book income statement for its year ended December 31, 2011: Sales

A person is willing to sell some stock


A? The effect of incorrect recognition of revenue on financial reportssk question #Minimum 100 words accepted#

Question 1: (a) Describe the following stock market anomalies which have been documented in the finance literature: (i) the January effect (ii) the Size effect (iii) t