How much will he have to save each month

Assignment Help Financial Accounting
Reference no: EM132864961

Question - Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $25,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 20 years at an estimated cost of $1,358,000. Third, after he passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $800,000 to his nephew Frodo. He can afford to save $2,100 per month for the next 20 years.

If he can earn a 11 percent EAR before he retires and a 7 percent EAR after he retires, how much will he have to save each month in years 21 through 30?

Reference no: EM132864961

Questions Cloud

Explain the purpose and content of each of the reports : Explain the purpose and content of each of these reports. Write Management's Report on Internal Control Over Financial Reporting the Form 10-K for the company
Develop on line services e commerce sites : Should organizations that develop on line services E commerce sites be held accountable for not securing your personal information in the event of a security br
Business analysts and organization independence : Business Analysts and Organization (subject) Independence: The X variables are independent of each other.
Positive effect on urban development : Why would infilling be considered a positive effect on urban development?
How much will he have to save each month : If he can earn a 11 percent EAR before he retires and a 7 percent EAR after he retires, how much will he have to save each month in years 21 through 30
Formulating a corporate strategy : What are the three dimensions that executives must decide when formulating a corporate strategy?
What is new balance for chris : One June 9, Chris made a payment of $800, and on June 17 he borrowed $5600. If the current prime rate is 10%, what is his new balance?
What amount is recorded for net investment : The lease requires annual fixed rental payments of $ 7, 000 per year beginning on January? 1, 2019, What amount is recorded for net investment
Find the loan payoff amount : The total finance charge was $8129.96. After 22 months, Barbara decided to pay off the loan. Use Rule of 78 to find the loan payoff amount.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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