Bernie has set aside no retirement money

Assignment Help Financial Management
Reference no: EM131562551

Bernie wants to retire to California when she is 60 years of age. Bernie is 40 now. She believes that she will need $900,000 to retire comfortably. To date, Bernie has set aside no retirement money. If Bernie gets 8% compounded semiannually, how much must she invest today to meet her $900,000 goal?

Show me how to do it mathematically and not with a calculator on excel.

Reference no: EM131562551

Questions Cloud

Why does a company need unearned revenue account : Why does a company need unearned revenue account and why is it considered a liability? Also, how and when do we recognize
How the company would operate after the merger : In 2008, the Board of Directors and shareholders of Anheuser Busch agreed to be acquired by a Belgian Brewer (InBev).
Cash flows-what is payback period : What is the payback period?
Find optimal input combination for production relationship : Given that the price of X is $25.00 per unit of X and the price of Y is $40.00 per unit of Y and MR is $.50.
Bernie has set aside no retirement money : To date, Bernie has set aside no retirement money. If Bernie gets 8% compounded semiannually, how much must she invest today to meet her $900,000 goal?
Market leader in producing self driving agricultural machine : Company ABC is a large publicly traded firm, a market leader in producing self driving agricultural machines.
What is the price of put option : A call option is currently selling for $2.80. What is the price of a put option with a $55 strike price and three months to maturity?
Discuss what are the asteroids : Add new asteroids when all have been cleared. Maybe the game should start with just two asteroids, and every time they are cleared away, new ones appear.
How much must bob put in the bank quarterly : Bob wants to buy his grandson a Ford Taurus in 4 years. how much must Bob put in the bank quarterly?

Reviews

Write a Review

Financial Management Questions & Answers

  Net worth represented by home and next two largest asset

Calculate the percentage of net worth represented by the home and the next two largest assets. Take into account any loans attributed to those assets so that you show the following - the asset’s net value/Total family net worth. This is called the “d..

  What is the cost of equity

Ronald's Fast Food just paid their annual dividend of $1.05 a share. The stock has a market price of $26 and a beta of 1.15. The return on the U.S. Treasury bill is 3 percent and the market risk premium is 7 percent. What is the cost of equity?

  Provides the greatest annual return

Which of the following provides the greatest annual return?

  What is the equipment after-tax net salvage value

What is the equipment's after-tax net salvage value?

  Find the current dividend on a stock

Find the current dividend on a stock, given that the required return is 9 percent, the dividend growth rate is 6 percent, and the stock price is $50 per share

  Replaced at the end of its life with an equivalent machine

EAC Approach You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $80 initially, and then $125 per year in maintenance costs. Machine B costs $150 initially, has a life of ..

  What is fair value for this stock today

A company is expected to have earnings of $1.21 per share in one year, $1.85 per share in two years, and $2.28 per share in three years. The dividend payout ratio is also expected to remain at 30% over the next three years. The leading P/E ratio is e..

  Purchase your mortgage from the local bank

Secondary Loan Company wants to purchase your mortgage from the local bank. The original loan amount was $200,000 for 30-years at an interest rate of 4%. The loan was made two (2) years ago. If Secondary Loan Company requires a 6% return, how much wo..

  State of economy return on stock a return on stock

State of Economy Return on Stock A Return on Stock B Bear .107 -.050 Normal .110 .153 Bull .078 .238 Assume each state of economy is equally likely to happen.

  Most risk of needing emergency loan

Which of the following activities will expose Baldwin to the most risk of needing an emergency loan?

  Explain the accounts payable accounting

Explain the “Accounts Payable Accounting” using a real example with different steps of sub-ledger and general ledger accounts.

  What is the net present value of investment

You are making an investment of $110,000 and require a rate of return of 14.6 percent. You expect to receive $48,000 in the first year, $52,500 in the second year, and $55,000 in the third year. There will be a cash outflow of $900 in the fourth year..

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