How mamy years will withdrawal take too exhaust aunts funds

Assignment Help Financial Econometrics
Reference no: EM13333674

Your Aunt Ruth has 450,000 invested at 6.5% and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately. How mamy years will it take too exhaust her funds, i.e., run the account down to zero?

Reference no: EM13333674

Questions Cloud

How much are dexter willing to pay today per share : Dexter Mills issued 20-year bonds a year ago at a coupon rate of 10.2 percent. The bonds make semiannual payments. The yield-to-maturity on these bonds is 9.2 percent. What is the current bond price
Who has the absolute advantage in catching fish : Who has the absolute advantage in catching fish? What is Friday’s opportunity cost of gathering one coconut?
Compute the molar solubility of the compound : The Ksp of beryllium hydroxide, Be(OH)2, is 6.92 x 10^-22. Calculate the molar solubility of this compound
What is the relationship between inflation and unemployment : What is the relationship between inflation and unemployment? What would happen to inflation if the unemployment rate would decrease? Make sure to explain your analysis.
How mamy years will withdrawal take too exhaust aunts funds : Your Aunt Ruth has 450,000 invested at 6.5% and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately.
Determine the internal resistance of the cell : A 1.7 -V. dry cell can be tested by connecting it to a low-resistance ammeter; it should be able to supply at least 30 A. What is the internal resistance (in ohms) of the cell in this case
Explain what is the concentration of ni2+ ions : A 0.170 mole quantity of NiCl2 is added to a liter of 1.20 M NH3 solution. What is the concentration of Ni2+ ions at equilibrium. Assume the formation constant of Ni(NH3)6 is 5.5 x 10^8
Determine what is the current price of bond m and bond n : Bond N also has a face value of $40,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 8 percent compounded semiannually.
What is the resistance of the patients chest : A 200?F defibrillator capacitor is charged to 1500 V.When fired through a patient's chest, it loses 95% of its charge in 40 ms

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Find what is the current bond price at a coupon rate

Ninja Co. issued 13-year bonds a year ago at a coupon rate of 7.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 6.2 percent, what is the current bond price

  Determine what is jowers cost of capital structure

The target capital structure for Jowers Manufacturing is 53% common stock, 19% preferred stock, and 28% debt. If the cost of common equity for the firm is 20.4%, the cost of preferred stock is 11.2%,

  Determine what is the wacc for the company

Assume the company's tax rate is 35 percent. Debt: 5,000 6% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 105% of par; the bonds make semiannual payments.

  Determine the firms optimal capital structure

A firm has established the following cost of debt and equity capital (withbankruptcy and agency costs) for various proportions of debit in its capital structures.

  What is the current price of the bond in the united states

Suppose a German company issues a bond with a par value of 1000, 15 years to maturity, and a coupon rate of 7.7 percent paid annually. If the yield to maturity is 8.8 percent, what is the current price of the bond

  How to show the companys equity after the issue

Book value of common stockholders' equity of Dow Chemical, December 31, 2010 (figure in billions). Common Shares ($1.5 par value per share) $2.939; Additioan paid in capital $2.294; retained earnings 17.744;

  What will be the current value of a share of avrils stock

avril synchronistics will pay a dividend of $1.30 per share this year. it is expected that this dividend will grow by 5% each year in the future.

  How much can withdraw each month from the account

To do this, you will invest $830 a month in a stock account and $430 a month in a bond account. The return of the stock account is expected to be 10.3 percent, and the bond account will pay 6.3 percent.

  Determine what will the profit be after three months

A particular put is the option to sell stock at $40. It expires after three months and currently sells for $2 when the price of the stock is $42. a) If an investor buys the put, what will the profit be after three months if the price of the stock i..

  What will the monthly payment be of new sports car

You want to buy a new sports car from Muscle Motors for $86,000. The contract is in the form of a 72-month annuity due at a 7.65 percent APR. What will your monthly payment be

  Determine what is the fair price of each bond now

ABC is also interested in buying some corporate bonds for its investment account. Suppose these bonds have identical coupon rates of 7.75% but one issue matures in 3 years, one in 8 years, and the third in 13 years.

  Find additional premium that ethiers shareholder require

Ethier is financed with 40% debt and has a levered beta of 1.75. If the risk free rate is 4% and the market risk premium is 7%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk

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