Retirement account has a fixed rate

Assignment Help Financial Management

Reference no: EM13723111

Your retirement account has a fixed rate of 8% per year paid yearly. You start saving for retirement at age 30 with a target retirement age of 65 and $0 in your savings account. Set up and solve a suitable first order differential equation to answer the following questions (compute all interests and payment on a yearly basis).

1. Suppose you set aside $500 every month. How much will you have for your retirement?

2. You want to retire with $500,000. How much should you save every month?

3. Assuming that your salary is going to increase 5% per year during your lifetime you can also decide your contribution should follow suit your monthly contribution increase by 5% every year. If your starting contribution is $500 every month, how much money will you have saved at retirement age?

4. Assuming again that your contribution is increasing by 5% every year, what should your starting contribution be if you want reaching $500,000 by retirement age?

Reference no: EM13723111

Questions Cloud

What is meant by psychographic segmentation : What is meant by Psychographic Segmentation, State Porter's forces that can influence global competition

What was its basic earning power ratio : x-1 corp's total assets at the end of last year were $405,000 and its ebit was 52,500. what was its basic earning power (bep) ratio?

Describe various quality tools and techniques : Describe various quality tools and techniques used in operations management. Provide examples.

Define which type of control works best : Which type of control works best when there is "no one best way" to do a job and employees are empowered to make decisions

Retirement account has a fixed rate : Your retirement account has a fixed rate of 8% per year paid yearly. You start saving for retirement at age 30 with a target retirement age of 65 and $0 in your savings account. Set up and solve a suitable first order differential equation to answer ..

Play the role of genetic counselor : You'll play the role of genetic counselor. A couple with a family history of Duchenne muscular dystrophy has come to you to determine the chances of passing on the disease. Read the Family History and construct a pedigree to analyze the inherit..

Explain expanding company''s manufacturing operation : Jan has been selected to implement her company's decision to expand her company's manufacturing operation into a new location. Six months into this project, the building has been completed, and machinery installed. However, Jan has been unable to ..

Write essay on concept of virtue or good ethical character : Write an essay comparing these two (2) ancient thinkers on the concept of virtue or good ethical character and conduct. Stay focused on the issue; keep any biographical or other information short or limited.

Calculate the net ROI and EVA : The Modern Language Corporation earned $3.5 million on net assets of $39 million. The cost of capital is 13.75%. Calculate the net ROI and EVA.

User Account

All Pages