Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
An individual is currently 30 years old and she is planning her financial needs upon retirement. She will retire at age 65 (exactly 35 years from now) and she plans on funding 20 years of retirement with her investments. Ignore any social security payments and ignore any taxes. She made $80,000 last year and she estimates she will need 75% of her current income in today's dollars to live on when she retires. She believes that inflation will average 3 percent per year during her working years. (For simplicity we will ignore inflation during her retirement years). She will retire at age 65 and will begin drawing down her retirement annuity at age 65. She plans on making a total of 20 annual withdrawals after she retires. After she retires she believes she will be able to earn 6 percent per year. If she puts her money in a blended stock and bond portfolio now, she figures she can earn 11.5 percent per year until she retires.
1) How much money will she need to withdraw each year starting at age 65 to have the same purchasing power as today? Round your answer to the nearest penny, do not enter the dollar sign in your answer.
2) How much money must she have at age 65 in order to make her planned withdrawals? Round your answer to the nearest penny and do not enter the dollar sign in your answer.
3) How much should she save per year starting right now in order to have the retirement annuity she desires? Round your answer to the nearest dollar and do not enter the dollar sign in your answer.
Computation of multiple cash flows for a year and Future value of a $1 annuity when R= 8% compounded annually and t=200
Family A and B both consist of a father, mother, and two children of school age. In family A both spouses have jobs outside the home and receive a combined income of $100,000 per year.
Computation of gains losses on transfer of assets and What are the amount and character of the gains and When does the holding period for the stock begin
Ensco Lighting Corporation has fixed costs of $100,000, sells its units for $28, and has variable costs of $15.50 per unit.
Calculation of budgeted department cost, production unit, direct material purchase cost & direct labour cost
Assume a proposed new road to be created between two cities will lower the average cost per trip by car from $5 to $4. Currently, 500,000 trips are made between the two cities per year.
Explain the following project evaluation processes: NPV, Payback, AAR, IRR. Is any one evaluation process better the others? Why?
You have budgeted which you will need to be capable to withdraw $2,000 per month from your account at start of each month of your holiday. The nominal interest rate on your savings account is 4.5 percent per annum compounded monthly.
Assume you have invested in two stocks, stock Y and stock Z. The returns on the two stocks depend on the following three states of the economy, which are equally likely to happen.
The following table describes the past two years of quarterly sales information. Suppose that there're both trend and seasonal factors and that the seasonal cycle is one year. Use time series decomposition to forecast quarterly sales for the next ..
If the real return for corporate bonds was 4% and the inflation rate was 2%, what is the nominal return for corporate bonds?
Har Company sold 5,000 units for a prie of $50 per unit and had the following data, If the sales price per unit were to increase by 10%,
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd