Retirement income plan

Assignment Help Financial Management
Reference no: EM13766374

Your 68 year old mother plans to retire in 2 years and she expects to live independently for 3 years. She wants a retirement income that has, in the first year the same purchasing power as 60,000 has today. However her retirement income will be of a fixed amount so her real income will decline over time. Her retirement income will start the day she retires (2 years from today), and she will receive a total of 3 retirements payments. In flatiron is expected to be constant at 6%. Your mother has $100000 in savings now an she can earn 9% on savings now and in the future. How much must shes save each year starting today to meet her retirement goals?

Reference no: EM13766374

Questions Cloud

Explain sarbanes-oxley act : Locate an article specifically related to the Sarbanes-Oxley Act (SOX Act) of 2002. Write a 350- to 700-word review of the article. Your review should discuss how the SOX Act may affect ethical decision making in today's business environment
Compare and contrast the online trading companies : Research online trading sites and DRIPS as outlined below, and summarize your findings. Make sure to include a summary table of the relevant information. Search three online trading sites, and determine the requirements for trading, including the pri..
Product using the physical units method : Allocate joint production costs to each product using the physical units method.
Define the term permeability and heterogeneity : Define the following terms, Permeability and Heterogeneity, Proper ownership and leadership, Conformance and Operability
Retirement income plan : Your 68 year old mother plans to retire in 2 years and she expects to live independently for 3 years. She wants a retirement income that has, in the first year the same purchasing power as 60,000 has today. However her retirement income will be of a ..
Inventory cost per unit using absorption costing : A. What is the inventory cost per unit using absorption costing? B. What is the inventory cost per unit using variable costing?
The developments in material science : Describe how silicone based semiconductors revolutionized computing
Simulate a multi-partitioned memory management system : Processes are also to be terminated by a GUI action. With each process change a free memory list status is to be output clearly showing the list items and their sizes.
Prepare a performance report for all costs : Prepare a performance report for all costs, showing flexible budget variances (indicate F or U).

Reviews

Write a Review

Financial Management Questions & Answers

  Find the holding period return

The prices for the white swan corporation for the first quarter of the last year are given below. Find the holding period return (percentage return) for March.

  What will your annual loan payment be

Dinero Bank offers you a $60,000, five-year term loan at 7.5 percent annual interest. What will your annual loan payment be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Firm is considering an investment in a new machine

A firm is considering an investment in a new machine with a price of $18 million to replace its existing machine. The current machine has a book value of $6 million and a market value of $4.5 million. The new machine is expected to have a four-year l..

  Returns from an asset are normally distributed

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.5 percent and the standard deviation of those stocks in this period was 43.89 percent. What is the approximate prob..

  How might financial managers budget for unforeseen changes

How might financial managers budget for unforeseen changes and improvements in information technology that require large capital outlays

  Explain concept of financial intermediation

Explain concept of financial intermediation. How does the possibility of financial intermediation increase the efficiency of the financial systems?

  Bond valuation-what is the bonds current market price

Callaghan Motors' bonds have 5 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 11.5%, and the yield to maturity is 11%. What is the bond's current market price? Round your answer to th..

  Calculate the realized rate of return earned on this bond

You bought a bond five years ago for $935 per bond. The bond is now selling for $980. It also paid $75 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calcu..

  Interest versus dividend income during the year just ended

Interest versus dividend income During the year just ended

  Writing a business plan to create financials

Writing a business plan to create financials as part of the business plan.  Section #1: Start-up expenses and capitalization.  Section#2: Financial Plan.

  What is the nominal risk free rate of interest

The real risk free rate of interest is 2.9%. Inflation is expected to be 3.2% next year, 4.7% the year after that, and 5.2% in the third year. What is the nominal risk free rate of interest that you would expect on a 3 year treasury security today gi..

  The remaining balance of his initial mortgage

Da Feng is looking to refinance his home because rates have gone down since he purchased the house 5 years ago. He started with a 30-year fixed-rate mortgage of $213,000 at an annual rate of 6.70%. He has to make monthly payments. He can now get a 25..

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