User Account

All Pages

How do calculate the monthly payment in retirement account

Assignment Help Financial Accounting
Reference no: EM132642716

By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years.

Question 1: How much will the face value of the bond that you will be investing?

Question 2: Calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above?

Question 3: How much will your inheritors receive?

Reference no: EM132642716

Questions Cloud

Explain any two indian accounting standard followed : Explain any two Indian Accounting Standard followed by that company in detail. Each student is expected to take any Public Limited Company
How did the children differ in terms of behavioral : How did the children differ in terms of behavioral and social interaction and How did the children differ in terms of language skills? Did you modify your rate
Which bond usually will have a higher liquidity premium : Which bond usually will have a higher liquidity premium: one issued by a large company or one issued by a small company? Explain in detail.
What the net cash inflows from operating activity should be : What the net cash inflows from operating activities in 2017 should be? At the beginning of 2017, the company purchased additional assets at a cost of P5,000,000
How do calculate the monthly payment in retirement account : By the end of this year you would be 35 years old, Calculate the monthly payment in your retirement account in order to be able to achieve the plan
Find total assets should be reported at : Mirr's liabilities increased to P2,000,000 by December 31, 2017. On Mirr's December 31, 2017 balance sheet, total assets should be reported at
What total assets should be reported at : On Mirr's December 31, 2017 balance sheet, total assets should be reported at? Mirr Company was incorporated on January 1, 2017, with proceeds from the issuance
Design a small business and document one key product : Design a small business and document 1 key product that you are selling.Name your business and product with a brief description of its purpose
What are all the necessary journal entries for the year : What are all the necessary journal entries for the year 2015-2016 including adjustments relating to the bond issuance. Use memorandum approach.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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