Plan for retirement-calculate the size of the withdrawal

Assignment Help Financial Management

Reference no: EM131918428

1. Kelly is saving $1,600.00 at the beginning of each month. How soon can he retire if he wants to have a retirement fund of $345,000 and interest is 11.04% compounded monthly?

2. Serena wants to retire in 25 years. To plan for her retirement, she deposits $1,500 at the end of each year into an RRSP. After her last contribution she concerts the RRSP into an RTIF from which she wants to make 20 annual withdrawals. If the first withdrawal is one year after the last contribution and interest is 6.5% compounded annually, calculate the size of the withdrawal.

3. Sandra intends to retire in 15 years and would like to receive $3,000 every six months for 19 years starting on the date of her retirement. How much must Sandra deposit in an account today if interest is 8% compounded semi-annually?

4. Paul intends to retire in 15 years and would like to receive $8,000 every 6 months for 20 years, starting on the date of his retirement. How much must he deposit in an account today if interest is 5% compounded semi-annually?

5. How much does a depositor have to save at the beginning of every 6 months for 20 years to accumulate $1,000,000 if interest is 6.00% compounded semi-annually?

Reference no: EM131918428

Questions Cloud

Calculate the share price for cosm : Financial analysts predict that the EPS of Cosmos Inc. (COSM) will be $7.63 next year. Calculate the share price for COSM.

Discuss the problems that could come up during entering : Discuss the problems that could come up during entering the information and what kind of problems it could create in the long run.

Assume cash flows are conventional-what is worst-case npv : An investment under consideration has payback of eight years and cost of $874,000. Assume the cash flows are conventional. what is the worst-case NPV?

Identify the purpose of your reflection : Identify the purpose of your reflection, organize your subjects and your points effectively, and support your points with details that you observe in the image.

Plan for retirement-calculate the size of the withdrawal : If the first withdrawal is one year after the last contribution and interest is 6.5% compounded annually, calculate the size of the withdrawal.

Record the purchase of the bond : On July 1st, 2010 Peterson Company purchased a bond with a face value of $300,000. Record the purchase of the bond

Describe few steps-stages of implementation : Why a negotiated agreement can fail at implementation stage and describe few steps/stages of implementation which can avoid failures?

Compare the role of data and information in planning : Compare and contrast the role of data and information in planning, include how data and information are implemented, managed, and accessed.

What we learn from the subprime mortgage crisis : What issues would sustain your interest long enough to write a dissertation on the subject?

User Account

All Pages