How many years will you have to work before you retire

Assignment Help Financial Management

Reference no: EM131835425

1. You currently have $600,000 in a retirement account, and you plan to deposit $5,000 at the end of every year until your account reaches $1,000,000. You expect to earn 8.5% annually. How many years will you have to work before you retire?

2. Which of the following is correct?

When calculating net present value, all cash flows are considered, even those at t = 0.

In the net present value calculation, r is greater if there is more risk involved.

The net present value calculation tells you how much greater or less your wealth would be by taking on an investment.

All of the answers are correct.

Reference no: EM131835425

Questions Cloud

Compute cash receipts from customers : Harbinger Inc. reported sales of $2 million for 2017. Accounts receivable decreased $150,000 and accounts payable increased $300,000.

How much will you have at the end of the years : You have $20,000 you want to invest for the next 40 years. How much will you have at the end of the 40 years?

Why is depreciation expense not reported in the cash flows : In the direct method, why is depreciation expense not reported in the cash flows from operating activities section.

Describe the indirect approach for net cash : Miguel, Inc. reported net income of $2.5 million in 2017. Depreciation for the year was $160,000, accounts receivable decreased $350,000, and accounts payable.

How many years will you have to work before you retire : You expect to earn 8.5% annually. How many years will you have to work before you retire?

Compute net cash provided by operating activities : The net income for Mongan Co. for 2017 was $280,000. For 2017, depreciation on plant assets was $70,000, and the company incurred a loss on disposal of plant.

Five-to-eight-month forward rate agreement with firm : You enter into a five-to-eight-month forward rate agreement with a firm. What is the implied forward rate for the 3-month period starting 5 months from now?

Describe strengthening or a weakening of the dollar : Suppose that the price of apples rises. Using the same language as in parts a and b, would you describe this as a strengthening of the dollar or a weakening.

How long will you wait from now : You expect to receive $30,000 at graduation in two years. You plan on investing it at 9 percent until you have $150,000. How long will you wait from now?

User Account

All Pages