How much does henry need to save each year

Assignment Help Finance Basics
Reference no: EM13837501

Question:

Henry Hub has 25 years to retirement and expects to spend a further 20 years in retirement (i.e., years 21-45). He lives an extravagent lifestyle and has drawn up a detailed spreadsheet which suggests that he will spent $256,880 a year in real terms in retirement.

If the real interest rate is 3%, how much does Henry need to save each year in real terms until retirement to attain his spending goal?

Reference no: EM13837501

Questions Cloud

Should the law change to offer famous people more privacy : Should the law change to offer famous people more privacy and leverage for winning libel lawsuits against tabloid magazines? Why or why not?
Is evolution a good explanation for psychological concepts : Is Evolution a Good Explanation for Psychological Concepts. Has to be 450 words or more with in text citations and with resources that are scholarly in nature
Name of the entrepreneur : Each student is to interview an entrepreneur of his or her choice. The entrepreneur should be someone who has started a business. It would be better if the person interviewed is still involved in the business, but it is not mandatory. The entrepreneu..
Online marketplace analysis : Establish how you would analyze a designated company's online presence using online marketplace analysis. Review the effects of Napster.com on both traditional and online advertising.
How much does henry need to save each year : He lives an extravagent lifestyle and has drawn up a detailed spreadsheet which suggests that he will spent $256,880 a year in real terms in retirement - If the real interest rate is 3%, how much does Henry need to save each year in real terms un..
Humanities discussion questions : The architecture of the Greeks and Romans has influenced people for centuries. When the founding fathers of America began to design Washington, DC, how were they influenced by the Greeks and Romans?
What is the present value of the project : A project is forecast to produce a safe cash flow of $800,000 a year for 20 years. If the cost of capital is 4%, what is the present value of the project?
Reflections on hs305 research methods in health science : Reflections on HS305 Research Methods in Health Science You are at the end of Research Methods in Health Science. Congratulations! I hope you are proud of the mock research proposal you have created. In this discussion, take some time to reflect on t..
The change analysis-images of change : The "Images" section focuses on the six different images of managing change and how each "approach" to change effects all that follows in its implementation and continued support. Download the "Week 2 Project Images Grid" from doc-sharing.

Reviews

Write a Review

Finance Basics Questions & Answers

  The quantity quality price and accessibility of financial

1.what human resource component within its operating environment is a major element of a firmrsquos ability to satisfy

  What are the costs of retained earnings and new common stock

Sun Instruments expects to issue new stock at $34 a share with estimated flotation costs of 7% of the market price. The company currently pays a $2.10 cash dividend and has a 6% growth rate. What are the costs of retained earnings and new common s..

  Question regarding collective knowledge of a team

Collaboration leverages the collective knowledge of a team. Peer evaluation and support, provided in the spirit of continuous improvement and organizational success, result in higher quality deliverables than generally possible by the efforts of a..

  Lagging its industry averages

Hatfield Medical Supplies's stock price had been lagging its industry averages

  Why are liquidity ratios for utility and fast food companies

Based on these ratios, what is your advice? If another student makes different suggestions, challenge them to justify their choices.

  Definition of capital structure

What do you understand by a Capital Structure? What basic principles will you advocate in matter of deciding on a proper pattern of capital structure for company?

  What is the expected dividend yield and expected capital

what is the expected dividend yield and expected capital gains yield for the coming year?

  Identify and explain one strategy presented

Identify and explain one strategy presented in this video that you think is important to apply to their future retirement needs. Why do you feel this is an important strategy?

  How large must the annual payments

How large must the annual payments at t = 5, 6, and 7 be to cover the daughter's anticipated college costs?

  Throughout this course you will prepare a 2500-word

throughout this course you will prepare a 2500-word excluding tables figures and addenda financial analysis of a chosen

  What is the economic order quantity

The carpets are sold out before they are restocked. What is the economic order quantity?

  What is the yield that trevor would earn by selling

The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,048.77, what is the yield that Trevor would earn by selling the bonds today?

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