Sales executive at baltimore firm

Assignment Help Financial Management

Reference no: EM131447390

Cecelia Thomas is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $3,800 every year in an IRA account, beginning at the end of this year until she turns 65 years old. If the IRA investment will earn 8.10 percent annually, how much will she have in 40 years, when she turns 65? (Round intermediate calculations to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)

Reference no: EM131447390

Questions Cloud

Charges an annual management fee : You will invest $20,000 and you are trying to choose between three funds, all promising a 10% annual return. Fund I charges an annual management fee of 1% and a front load of 5%. Fund III charges an annual management fee of 1.5% without any front or ..

Relationship between default probability and interest rates : A finance company wants to analyze the relationship between the default probability and the interest rates that will be charged to clients under the assumption of risk neutrality. The interest rate charged to prime clients with no risk of default is ..

How much will you be able to spend each year in retirement : You have just graduated Hofstra University at age 22. Your hard work has paid ff as you already have a job as an investment banker at Goldman Sachs waiting for you. You plan to work continuously until age 65 and retire exactly on that day. How much w..

Sales executive at baltimore firm : Cecelia Thomas is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $3,800 every year in an IRA account, beginning at the end of this year until she turns 65 years old. If the IRA investment will earn 8.10 percent annuall..

What share price will you receive a margin call : The stock of Flop Industries is trading at $39. You feel the stock price will decline, so you short 500 shares at an initial margin of 50 percent. If the maintenance margin is 35 percent, at what share price will you receive a margin call?

What is the bonds current yield : Company X bonds have 14 years remaining to maturity, but are callable in 4 years at a call price of $1,050. The bonds have $1,000 face value, currently trade at $1,180 and have a coupon rate of 5%. What is the bond’s Yield to Maturity? What is the bo..

What is the reconciled bank balance : A student's bank statement reflects $1,600 at month end. The student's checkbook, before reconciling, reflects $1,500. The student has $5 of interest on the bank statement which has not been posted to his/her checkbook, deposits in transit of $100, a..

The balance of this account after the initial investment : Your grandfather made an investment of $4,000 the day you were born, as such starting to earn returns immediately. His assumption is that by investing in the average market, the investment account will earn an annual rate of 6%, which is a historical..

User Account

All Pages