Prepare for retirement, Your friend wants to prepare for

Prepare for retirement

Assignment Help Financial Management

Reference no: EM131491275

Your friend wants to prepare for his retirement. He does not want to rely on his children for his retirement expenses which he projects to be P30,000 per month starting at age 50. He assumes that he will live to a maximum age of 70. He just turned 25 now. Since he is still earning, he plans to put a fixed amount annually until he retires (age 50) to create a fund that will provide him with monthly allowance in his retirement, How much should be the value of his investment at age 50? How much should be his monthly investment in a fund that earns a 9 percentage nominal annual rate, compounded monthly?

Reference no: EM131491275

Questions Cloud

Is it correct that justin will be taxed like individual now : Is it correct that Justin will be taxed like an individual now? Why or why not?

Cheapest source of financing for hand-to-mouth : Which alternative is the cheapest source of financing for Hand-to-Mouth? It is alternative . (fill in "A", "B", or "C" without quotes)

New beta if they changed to using capital structure : Find the new beta if they changed to using a capital structure that used 30% debt and 70% equity. The tax rate is 35%.

Find the present value of the annuity : On the basis of an interest rate of 5 percentage per half-year, find the present value of the annuity.

Prepare for retirement : Your friend wants to prepare for his retirement. How much should be the value of his investment at age 50?

Forgo the discount on its trade credit agreement : Your startup needs a $10,000 loan for the next 35 days. It is trying to decide which of three alternatives to use: Forgo discount on its trade credit agreement

Determine the number of new shares the company : Determine the number of new shares the Company must sell to raise the desired amount of capital.

What rate of return must be earned on the net proceeds : Determine what rate of return must be earned on net proceeds to corporation so there will not be dilution in earnings per share during year of going public.

Explain what roll meant by the benchmark error : Explain what Roll meant by the benchmark error and identify the specific problem with this benchmark. Explain what Roll meant by the benchmark error.

User Account

All Pages