Deposit into her retirement fund at the end of each month

Assignment Help Financial Management
Reference no: EM131328296

Show calculations and Formulas

You are helping your friend plan for her retirement. Your friends company has a new pension plan that will deposit $100 at the end of each month into her retirement fund (the first deposit will be made one month from today). She plans to retire exactly 25 years from today, and estimates that she will need $3,000 per month withdrawn at the beginning of each month for 20 years. If interest rates are 12 percent per year, compounded quarterly, how much must she deposit into her retirement fund at the end of each month (in equal amounts per month) over the next 25 years, in addition to the $100 deposited by the company, in order to meet her objective?

Reference no: EM131328296

Questions Cloud

Why do a firms stockholders hold a valuable default option : Why do a firm's stockholders hold a valuable "default option"? How could this option induce stockholders to employ high levels of financial leverage?
Differentiate between direct indirect costs of bankruptcy : Describe how managers whose firms have debt outstanding and face financial distress, could jeopardize the investments of creditors with the "games" of asset substitution and underinvestment.
What is the contribution to income from processing : What is the contribution to income from selling the 14,000 pounds of HS at split-off? Conceptual Connection: What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS?
What are the trade offs in the agency cost : What are the trade-offs in the agency cost/tax shield trade-off model? How is the firm's optimal capital structure determined under the assumptions of this model? Does empirical evidence support this model?
Deposit into her retirement fund at the end of each month : You are helping your friend plan for her retirement. Your friends company has a new pension plan that will deposit $100 at the end of each month into her retirement fund (the first deposit will be made one month from today). how much must she deposit..
What safeguards should be instituted to reduce the risk : ACCT20040 - Auditing and Ethical Practice, ACCT20075 - Auditing and Ethics Assessment Task. What action should Fellowes and Associates take to eliminate the potential threats to independence in situations (1) and (2) above? What safeguards should b..
Observed relationship between debt ratios and profitability : What industrial and national capital structure patterns are exhibited globally? What factors seem to be driving these patterns?
How do stock prices generally react to announcements : How influential are corporate and personal taxes on capital structure? Historically, have changes in American tax rates greatly affected debt ratios?
Calculate the expected return on equity for mec shareholders : Calculate the expected return on equity for MEC shareholders, under both the current all-equity capital structure and under the recapitalization plan.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

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

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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