How much money do you have to add to your current savings

Assignment Help Financial Management
Reference no: EM132044410

You invested $100,000 in the stock market 15 years ago when you were 30 years old. The stock market on average has returned 8% over the past 15 years. Now you think that the stock market is too risky and you want to move your savings to the bond market. You estimate that the bond market on average will return 4% per year over the next 15 years, by the time you retire at the age of 60. Will you be able to retire with $1,000,000? If not, how much money do you have to add to your current savings so that you will be able to retire with $1,000,000?

Reference no: EM132044410

Questions Cloud

Start saving for your retirement : You are 25 years old now and want to start saving for your retirement. Your retirement account pays 5% interest.
Management is planning to fund development project : Northrop Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000.
Company offers three different retirement plans : Your company offers three different retirement plans for you to choose from. Which plan should you choose if you plan to retire in 40 years?
What is the current value of this bond : Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. What is the current value of this bond?
How much money do you have to add to your current savings : how much money do you have to add to your current savings so that you will be able to retire with $1,000,000?
How much money you will have after ten years : how much money you will have after 10 years? How long (how many years) do you have to wait until you can double your money?
Buy piece of equipment for your business : How do you determine whether you should lease or buy a piece of equipment for your business?
Using the terms adjusted gross income and taxable income : Determine your Total Tax Liability using the terms Adjusted Gross Income and Taxable Income..
What is hedge ratio of an at-the-money straddle position : What is the hedge ratio of an at-the-money straddle position on IBM?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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