User Account

All Pages

Find the optimal annuity value for john

Assignment Help Microeconomics
Reference no: EM13878979

John is considering investing in an annuity. He expects to invest anywhere between 5% and 20% of his monthly income. John currently makes $72,000 per year and expects an average raise of 4% in his salary until he retires; he doesn't know exactly when he will retire but expects that it will be anywhere from 15 to 20 years from today. The annuity's interest rates (depending on the time period) are listed below:

Time Length of Annuity

Expected Effective Annual Interest Rate (%)

15

4.25

16

4.00

17

3.95

18

3.75

19

3.60

20

3.50

Find the optimal annuity value for John, that is, for how many years John should work and how much he should invest every month.

Reference no: EM13878979

Questions Cloud

Prepare the profit and loss account for the period : Prepare the profit and loss account for the period. Explain what you understand by ‘period costs' and discuss your treatment of them in the calculations you have carried out.
Constrain or limit the strategic choices of mnes : In what ways can trade unions constrain or limit the strategic choices of MNEs?
Determine by direct integration : A homogeneous wire is bent into the shape shown. Determine by direct integration the x coordinate of its centroid. Express your answer in terms of a.
What price is the minimum that should be accepted : What price is the minimum that should be accepted? What implications are there for the company, in both the short term and the long term, of accepting this special order?
Find the optimal annuity value for john : Find the optimal annuity value for John, that is, for how many years John should work and how much he should invest every month.
Give three ways that the jacksonian era : Give three ways that the Jacksonian era was, and three ways that it was not, an era of the common people. On the whole, which of the two arguments do you think was more important in the Jacksonian era?
Discuss relation of cost classification and need of managers : Discuss the relationship between cost classification and the needs of managers and decision makers in a critical context.
Use of child labor in the global environment : Topic: The Use of Child Labor in the Global Environment. Analysis must include a proper cover page, at least 5 FULL pages of content, and one properly written reference page
Why was south carolina the first to secede : Why was South Carolina the first to secede? What about its history and demographic makeup made it the first to leave the Union? Discuss events AND individuals that would create and perpetuate a such a tendency.

Reviews

Write a Review

Microeconomics Questions & Answers

  Should newtons donuts spend more on advertising

Calculate the price elasticity of demand for Newtons Donuts and describe what it means. Describe your answer and show your calculations.

  Game show uncertainty problem

In the final round of a TV game show, contestants have a chance to increase their current winnings of 1 million dollars to 10 million dollars. If they are wrong, their prize is decreased to $100,000. To win, they have to guess the exact percentage th..

  Does make the firms more risky or less risky

What characteristics of oligopoly make their prices and output levels "sticky"? Does this make the firms more risky or less risky?

  Where there is a natural monopoly situation there may be a

where there is a natural monopoly situation there may be a case for government intervention either in the form of price

  Examination of the two types of change agents

Prepare a 1,050-word paper assessing the various roles of managers and individuals in the change process. Include an examination of the two types of change agents as well as and a manager's role in combating resistance and championing change.

  Based on the data and using mrp mrc rule determine number

suppose you are the president of fraggle rock co. a producer of musical compact discs cds.nbsp assume fraggle rock co.

  How a change in minimum wage affects the employment

Minimum wage legislation requires most firms to pay workers no less than the legislated minimum wage per hour. Using marginal productivity theory, explain how a change in minimum wage affects the employment of unskilled labor?

  What is the significance of the lau v. nichols case

What are some of the reasons for the largest immigrant trend in the US since the 1970s and although the public has always been divided over bilingual education, why is this truer today than ever before?

  How would you approach physician write the reasons for

as a supervisor for the hospital pharmacy that uses an integrated delivery system ids you are responsible for

  Question in the above diagram the elimination of

in the above diagram the elimination of discrimination is best represented by ltbrgt ltbrgt ltbrgt ltbrgt ltbrgt ltbrgt

  Demand curve or supply curve

Please apply demand and supply analysis to answer the following questions related to the U.S. real estate market: What is the impact on residential real estate market after the Fed stopped QE3 (buying bonds monthly from banks) in 2014? Please state t..

  Would this tactic really bring in more revenue

Suppose that you are an officer of your campus theatre club. You are at a meeting called to discuss ticket prices. One member says, "What I hate to see most of all is empt seats in the theatre. We sell out every weekend performance; however there are..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd