Bond account-planning to save for retirement

Assignment Help Financial Management
Reference no: EM131353185

You are planning to save for retirement over the next 25 years. To do this, you will invest $500 a month in a stock account and $200 a month in a bond account. The return of the stock account is expected to be 8 percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a 7 percent return. Required: How much can you withdraw each month from your account assuming a 20-year withdrawal period?(Do not round your intermediate calculations.)

$4,394.18

$258,539.43

$53,806.28

$4,573.53

$4,483.86

Reference no: EM131353185

Questions Cloud

Differentiate between ectoderm-mesoderm : Differentiate between ectoderm, mesoderm and endoderm and list what tissues arise from each?
Uses profitability index when evaluating projects : Gold mining, inc uses the profitability index when evaluating projects. gold mining's cost of capital is 11.77 percent. what is the PI of a project if the initial costs are $2320888 and the project life is estimated as 10 years? the project will prod..
Analyze the mission statement of the selected organization : Analyze the mission statement of the selected organization. Determine two characteristics or components of the mission statement that you believe are most aligned with the organization's directional strategy. Justify your response.
What is the project completion time : The activities described by the following table are given for the Howard Corporation in Kansas: Find the critical path. What is the project completion time
Bond account-planning to save for retirement : You are planning to save for retirement over the next 25 years. To do this, you will invest $500 a month in a stock account and $200 a month in a bond account. The return of the stock account is expected to be 8 percent, and the bond account will pay..
Briefly discuss the historical aspect of the issue : Briefly discuss the historical aspect of the issue.Was there a particular event or series of events in society that focused attention on the issue?What interest group is actively involved?How do the major theories discussed in this class explain the ..
Annual rate of return over the course of his career : Joe's starting salary as a mechanical engineer is around 90,000 Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects a 5 % salary increase each year tor the next 30 years of employment. If the mutual fund wi..
Ductus arteriosus and the ductus venosus : 1) The ductus arteriosus and the ductus venosus are two key vessels in the fetal circulation that are absent in the adult circulation. What are their function in the fetus? Why are they necessary?
Useful organ for gas exchange : 1) Starting with the umbilical vein, list/chart the general flow of blood through the fetus of a pig. 2) What special features of the lung make it a useful organ for gas exchange?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the annual return on the mutual funds

Suppose an individual invests $40,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 4.4 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating e..

  Shares of sirius satellite radio

You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $3.98 and $3.95, respectively. You place a market buy order for 540 shares that executes at these quoted prices. How much money did it cost to buy these..

  Term insurance option to be comparable to the whole life

Whole life: For $1,150 per year (annuity) you can invest in the whole life policy and receive a 6% return on your money along with $100,000 of life insurance coverage. Term life: You can buy $100,000 of life insurance for $400 and invest the rest ($7..

  Capital budgeting timeline with their periods and cash flows

You have the following capital budgeting timeline with their periods and cash flows: 0 = ?, 1 = $4500, 2 = $4900, 3 = ?, 4 = ?, 5 = $4000, 6 = $3750. The terminal value of the project is $34,806.73. The NPV = $1311.33 and the cash flow in period 4 ca..

  What is the companys pretax cost of debt

Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. Wh..

  Supply is operating at full capacity with annual sales level

Nagle Hardware Supply is operating at full capacity with an annual sales level of $689,700 and assets of $468,000. The profit margin is 10 percent. What is the required addition to assets if sales are to increase by 7 percent? $3,276 $4,680 $28,400 $..

  What is the value of the bond conversion option today

The manager of a young firm releases an optimistic forecast about the growth of the firm. The manager decides to raise $100M by issuing 80K convertible bonds at a price of $1,250 per bond. Each bond has a face value of $1,000, a coupon rate of 6 perc..

  What will be the effect on total production

Assume complete specialization, where china produces only toys and France produces only wine. What will be the effect on total production?

  Develop a plan for managing your debt

Develop a plan for managing your debt. How many sources of debt do you current have, and what are the balances owed on each? What specific behavioral steps do you personally need to take to match your debt aspirations with your debt reality? How will..

  What is the firms net operating working capital

The assets of "Sample Co." consist entirely of current assets and net plant and equipment. The firm has total assets of $ 2,556,016 and net plant and equipment of $ 1,327,357. The company has notes payable of $ 111,786, long-term debt of $ 847,764, a..

  Calculate the time-weighted rate of interest

On January 1st, an investment is worth $100. On April 19th, the value is $95 and $2X is deposited right afterwards. On October 30th, the value is $105 and $X is deposited right afterwards. On January 1st of the following year, the investment is worth..

  What level of sales would generate in net income

The CEO would like to see higher sales and forecasted net income of $2,500,000. Assume that operating costs (excluding depreciation and amortization) are 5% of sales and that depreciation and amortization and interest expenses will increase by 10%. T..

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