Calculate the present value of the retirement benefit

Assignment Help Financial Management
Reference no: EM13768241

Stan elects to receive his retirement benefit over 10 years at the rate of 2000 per month beginning one month from now. The monthly benefit increases by 5% each year. At an annual nominal interest rate of 6% compounded monthly, calculate the present value of the retirement benefit.

Reference no: EM13768241

Questions Cloud

Write a paper on current trends in education : Write a paper on Current Trends in Education and Themes in Education: Action Research. What topics did you see and read about that lead you toward clarifying a general idea and establishing an area of focus for research?
Annual interest rate and how much needs to be borrowed : Company expects to use $1,600,000 short term credit bus wants a $3, 000, 00 line of credit in case of unexpected events. LIBOR is 4% and the loan is priced at LIBOR plus 2.5% with Commitment fee of 0.3% on the unused portion of the line. Bank also re..
Examine the rates of growth in the service categories : Examine the rates of growth in the service categories (except the category "other"). What trends do you see in the mix of healthcare services used by the US public? What factors might contribute to these trends?
What was its interest expense : Molteni Motors Inc. recently reported $3.25 million of net income. Its EBIT was $8 million, and its tax rate was 35%. What was its interest expense?
Calculate the present value of the retirement benefit : Stan elects to receive his retirement benefit over 10 years at the rate of 2000 per month beginning one month from now. The monthly benefit increases by 5% each year. At an annual nominal interest rate of 6% compounded monthly, calculate the present ..
Annual effective interest rate : The following two investment options are viewed under an annual effective interest rate of i. Investment A is a 10-year zero coupon bond which redeems at par-value 250. Investment B is a perpetuity-immediate paying an annual payment starting with 4 a..
Environmental health-discuss of food borne illnesses : Please discuss the perspective of food borne illnesses in 2015, compared to what they might have been in 50 or even 100 years ago. Be sure to supply your APA formatted sources that inform your remarks.
Economic development status in turkey and ukraine : Affection of the global recession and Inflation in the economy of any country - causes of the global recessions and inflations on the economy of both countries and the affect of the global recessions and inflations on the economy of both countries.
How your personal thinking about ethics and morality changed : describe how your personal thinking about ethics and morality has changed over the 15 weeks in this course. How did you think about these things before that class began and how has that changed?

Reviews

Write a Review

Financial Management Questions & Answers

  Saving for college

You expect that your daughter will go to college ten years from now. Taking account of inflation, you estimate that you will need $160,000 to support her during her years in college. Assume an interest rate of 4 percent on your savings accounts. How ..

  Evaluating two different machines

You are evaluating two different machines. Machine A costs $25,000, has a five-year life, and has an annual OCF (after tax) of -$6,000 per year. Machine B costs $30,000, has a seven-year life, and has an annual OCF (after tax) of -$5,500 per year. If..

  Composite indicator versus using simple individual indicator

What is the advantage of using a composite indicator versus using a simple individual indicator? Please be clear and provide examples

  Part of the process of cost allocation

Which of the following is not part of the Process of cost allocation?

  Estimate the residual value and perform firm valuation

Estimate the Residual Value and perform the corresponding firm valuation.

  Analyze the current financial state of anthonys orchard

Review the readings and media for this unit, including the Anthony's Orchard case study media - Familiarize yourself with the Anthony's Orchard company and its current situation

  Explain a discounted cash-flow analysis

The salvage value at the end of the 10 years is expected to be $1,500,000, which is solely the value of the land. The firm's tax rate is 40 percent, and the firm's discount rate is 15 percent. Based on a discounted cash-flow analysis, should the in..

  What is the objective companies attempt to achieve

What is the objective companies attempt to achieve when managing bank relations and name the three major paper-based payment mechanisms and explain each

  Any forecast of financial requirements involves determining

Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in assets and spontaneous liabilities and subtracting operating income. The projected balance sheet method of f..

  Medical expenses-preferred provider organization plan

Margo, age 35, was severely injured in an auto accident. She is covered under her employer’s preferred provider organization (PPO) plan. The plan has a $1000 calendar-year deductible, 80/20 percent coinsurance, and an annual out-of-pocket limit of $3..

  Change in accounting estimate

Change in accounting estimate

  Assume these are zero-coupon bonds

Bond A pays $8,000 in 20 years. Bond B pays $8,000 in 40 years. (To keep things simple, assume these are zero-coupon bonds, which means the $8,000 is the only payment the bondholder receives.)

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