How would it affect your savings amount

Assignment Help Financial Management
Reference no: EM131022012

Suppose you're going to save for retirement over 30 years, monthly instalments. Your investments fund has been averaging at 8% per year. You would like your investment fund to last you 25 years. If you would like to pull out $3,500 per month after retirement, what would be your monthly savings amount? Part 2: Same question, but include inflation to average out at 2% over the following 55 years. How would it affect your savings amount?

Reference no: EM131022012

Questions Cloud

What was the percentage change in josie income : Josie's income in 2010 was $50,000 and her income in 2011 was $60,000. Her income in 2012 was $50,000. Use this information to answer this next set of questions. For this set of questions assume there was no inflation during this three year period..
Sketch a bode plot for the loop gain : The op amp in the circuit of Fig. has an open-loop gain of 105 and a single-pole roll off with ω3dB = 10 rad/s. Sketch a Bode plot for the loop gain. Find the frequency at which |Aβ| = 1, and find the corresponding phase margin.
What is future value in seven years-compounded annually : What is the future value in seven years of $1,200 invested in an account with an APR of 8 percent, compounded annually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
What price must the stock reach in order for you to convert : A $1000 face value bond has a conversion ratio of 40. You estimate the transaction costs of conversion to be 3% of the face value of the bond. What price must the stock reach in order for you to convert?
How would it affect your savings amount : Suppose you're going to save for retirement over 30 years, monthly instalments. Your investments fund has been averaging at 8% per year. You would like your investment fund to last you 25 years. If you would like to pull out $3,500 per month after re..
Calculate the total market value of the firms debt : Wolverine Corp. currently has $5,000,000 in equity outstanding and $1,000,000 in debt outstanding. The firm currently has 500,000 shares of common stock outstanding. The firm is contemplating issuing an additional $1,000,000 in debt and using the pro..
Find required value of compensating miller capacitance : Assume that the op amp incorporates an amplifier equivalent to that in Fig. 11.40, with C1 = 150 pF, C2 = 5 pF, and gm = 40 mA/V, and that fP1 is caused by the input circuit and fP2 by the output circuit of this amplifier. Find the required value..
What is the cost of the market basket : What is the cost of the market basket in each of the three years? Please show your work neatly and completely for full credit. Summarize your calculations in the provided table
Suppose an investment offers to triple your money : Suppose an investment offers to triple your money in 36 months (don’t believe it). What rate of return per quarter are you being offered? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reviews

Write a Review

Financial Management Questions & Answers

  Suppose a bond with face value

Suppose a bond with face value of $1000, pays sem-annual coupons of $50 each. How big of a coupon would a bond with the same face value that pays annual coupons, have to pay, so that the bonds are equivalent?

  What is the net fixed rate that vz has to pay

What will be the net interest payment of VZ for the principal of 100M on each of the dates shown in the above table? Of this amount, how much goes to Citibank?

  Covariance of returns between willow stock and sky diamond

The covariance of the returns between Willow Stock and Sky Diamond 0.0950. The variance of Willow is 0.2330 and the variance of Sky Diamond is 0.1240. What is the correlation coefficient between the returns of the two stocks?

  What specific investment actions would you suggest

A hedge fund has a capital of $100 million and invests in a long/short strategy on the U.S. equity market, with a long bias. It follows a 150/50 strategy meaning 150% long and 50% short. Shares can be borrowed from a primary broker. The primary broke..

  Consumer and investors confidences increases

Loanable funds theory practice: show a graph how events a b and will affect supply and demand for Loans and equilibrium interest rate. Consumer and investors confidences increases

  Illustrate your argument with additional specific evidence

Use the dataset inequality.dta to discuss whether inequality between Angola, Argentina, China, and Japan from 1975 to 2009 has increased or not.

  Using a minimum of seven financial ratio compare

Using a minimum of seven financial ratio compare the 2012, 2013, and 2014 yearend financial results of the following corporation: Walt Disney corporation, Oracle corporation, Ford motor company

  Value of the shareholders equity account for this firm

Penguin Pucks, Inc., has current assets of $6,700, net fixed assets of $23,600, current liabilities of $5,850, and long-term debt of $14,100. What is the value of the shareholders’ equity account for this firm? How much is net working capital?

  What would be your total real return on the investment

You bought one of Bergen Manufacturing Co.’s 7 percent coupon bonds one year ago for $1,045. These bonds make annual payments and mature twelve years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 6 per..

  Defined as the incremental profit dividend by the investment

Schweser Satellites Inc produces satellite earth stations that sell for $100,000 each. The firm's fixed costs, F, are $2 million. 50 earth stations are produced and sold each year, profits total $500,000 and the firms assets (all equity financed) are..

  Calculate pcd return on sales and roi for 2014

PCD managers are evaluated and rewarded on the basis of ROI defined as operating income divided by total assets. Barkley Industries expects its divisions to increase ROI each year.

  Considering production of a lighted world globe

The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the globe will be $60 per unit and fixed costs per year will ..

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