### Retirement annuity problem

Assignment Help Finance Basics
##### Reference no: EM1330368

Ms. Amidala Inflamada is celebrating today her birthday and 15th anniversary as the Executive Secretary for Mr. Num Bei Wan, President of Last Chance, Inc. During the day she was talking to her closest friends how turbulent where the first days she came in to work after her graduation from the University when she was only 22 years old. One of her friends asked her if she have planned for her retirement. She replied that she has to establish a retirement plan that should provide for her needs after her retirement, considering that probably she will be alone and maybe the Social Security will not be around any more.

For a female her age and ethnic group, the life expectancy is 85 years and according to new rules her retirement age should be 65. She thinks that she will do fine with a monthly pension payment of \$3,500.00.

How much should Ms. Inflamada deposit every end of month starting this same month in order to accumulate the proper amount to fund her pension payments after her retirement? Assume that she can obtain a 9% average return on her deposits and on her funds accumulated on her retirement plan.

(Provide all computations for this problem in addition to the solution.)

The computations of the problem are ok. I need to find the factors of the PVIFA (240,9%/12) and the FVIFA (9%/12, 336). The procedure is ok but when I go to the PVIFA and FVIFA tables i don't find the factor number for (240,9%/12) and (9%/12, 336). I need to be more specific in the numbers and formulas to get the factors. Where was the equation to get \$ 257.91? How I can find on the tables the line with the period and percent?

#### Questions Cloud

 Writing the recruiting adds : How it selects candidates for training programs or evaluates its managers. Discussing negotiation in possible solution for all parties : Discuss a negotiation that did not result in the best possible solution for all parties. Explain fixed and variable costs and operating leverage : Explain Fixed and Variable Costs and Activity-Based Costing and Operating Leverage The maturity stage of the internet : Have we already entered or are we about to enter the maturity stage of the Internet? Explain from a scholar/leader/practitioner position. Retirement annuity problem : Suppose that she can obtain a 9% average return on her deposits and on her funds accumulated on her retirement plan. Explaining risk-taking align with innovation : How does risk-taking align with innovation? London as most diverse city : London is said to be one of the most diverse cities in the world. Why and what are the demographics of the city? Calculations in log space using natural logarithms : A coworker is considering the use of a log linear (power) model using weight to find the cost of a manufacturing effort. Define electronic commerce on the united states legal system : Explain Electronic Commerce on the United States Legal System and what is the impact of electronic commerce on the entire United States legal system

### Write a Review

#### Computing the annual present value cost of maintenance

Compute the annual present value cost of maintenance (15 years).

#### Time value of money-future present value

For below time value of money problems, complete by using formulas in Excel on each separate tab. List any assumptions and support each decision made.

#### Time value of money-continuous compounding

You make deposits of \$2 each year for 30 years. The rate of interest that will prevail is 10 percent for the first 20 years and then 12 percent for the remaining period.

#### Background information on the firm

The Shocking Demise of Mr. Thorndike, Prepare a PowerPoint presentation to be presented in class (blackboard) and an Excel worksheet backup that address the case study question(s) and provides:

#### Time value of money in economic decisions

Please describe why the time value of money is significant in an economic decision and how NPV and payback period are used in business to incorporate the time value of money into operational decision.

#### Wacc and impact on decision to expand

What is marginal weighted average cost of capital and how does it impact the decision to expand your division?

#### Computation of depreciation expense

Computation of Depreciation expense and What is Laiho's depreciation expense but no amortization expense

#### Decision making among buy and lease

Decision making among buy and lease and Your landscaping company can lease a truck for \$8000 a year (paid at year end) for 6 years

#### Questions on project evaluation and dividend policy

Multiple choice questions on project evaluation, dividend Policy and bond valuation - conflicts of interest between stockholders and bondholders?

Susan Lee who is 26 years-old has new job with Inspiron. She is planning to start her own business in eight years so she has two options to start saving money to open her shop:Please show the computation for each of option and describe which of th..

#### Interest equivalent factor

Interest equivalent factor,  Lori Stratton is considering investing in a bond that provides a yield of 8.35 percent or a preferred share with a yield of 7.09 percent. Lori lives in Ontario and at her level of taxable income, the federal tax rate is ..

#### Objective type questions on cost of capital

Objective type questions on cost of capital and capital budgeting and rule states that a typical investment project with an IRR that is less than the required rate should be accepted

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!