Finding the value of social security promise

Reference no: EM131938412

Question: Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will get paid 45 years from now) If your discount rate is 7%, compounded annually, and you plan to live for 17 years after retiring (so that you will receive a total of 18 payments including the first one), what is the value today of Social Security's promise? The value today of Social Security's promise is $ (Round to the nearest cent)

Reference no: EM131938412

Questions Cloud

Determine dividends per share for preferred and common stock : Sandpiper Company has 20,000 shares of 1% cumulative preferred stock of $100 par, Determine dividends per share for preferred and common stock for each year

What is the firm cost of equity : Shadow Corp. has no debt but can borrow at 7.3 percent. The firm's WACC is currently 9.1 percent, and the tax rate is 35 percent.

Is there merit to the claim of the journalist : Why did the journalist use such powerful language to describe this issue? Is there merit to the claim of the journalist?

Show a bank reconciliation for commander company : Show a bank reconciliation for Commander Company at March 31. Show the adjusting entries needed to balance the company's cash account to the bank's balance

Finding the value of social security promise : Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will get paid 45 years from now).

How much interest rate would you have effectively paid : If you spend 1,000 using this credit card. How much will you have to pay in 1 year to settle your account. How much interest rate would you have effectively

What is the breakeven stock price at maturity : Create a payoff and profit table table (using a range of stock prices from $630 to $670, in increments of $10) if the exercise price is $650.

Result of chad decision not to withdraw : What is the result of Chad's decision not to withdraw any of Trey's contribution to the trust?

What is the bit size of the port address in a udp header : What is the maximum size of an IPv4 header? What is bit size of the port address in a UDP header? What is default mask for a class A address in CIDR notation?

User Account

All Pages