Save annual payments towards your retirement account

Assignment Help Financial Management

Reference no: EM131861498

Assume you are going to work for the next 38 years and save annual payments of $3,000 towards your retirement account. The first payment will be made at the end of year 1, and the last payment will be made at the end of year 38. The retirement account will earn interest of 8%. If you expect to live for 25 years after your retirement, and during that time your account will earn 3% interest, what will be your annual end-of-year retirement income drawdown (round to the nearest dollar)?

Reference no: EM131861498

Questions Cloud

Write matlab program that prompts user for load impedance : Write a Matlab program that prompts the user for the following: Generator parameters, line characteristic impedance, line length, and load impedance

Discuss the industry potential for particular product market : Your marketing plan may need an estimate of the size of the market potential or industry potential for a particular product market in which you compete.

Bottom-up as approach to security valuation and selection : What is the difference between top-down and bottom-up as an approach to security valuation and selection?

Define the master budget and its guidelines to use : What are the benefits to creating a master budget? What are the risks in not creating a master budget?

Save annual payments towards your retirement account : Assume you are going to work for the next 38 years and save annual payments of $3,000 towards your retirement account.

Make sense to abandon the project : If expected sales are revised based on the first year’s performance, below what level of expected sales would it make sense to abandon the project?

What is the sensitivity of NPV to each of these variables : The tax rate is 38 percent, and the cost of capital is 10 percent. What is the sensitivity of the NPV to each of these variables?

How successful would a television commercial in japan be : How successful would a television commercial in Japan be if it featured a husband surprising his wife in her dressing area on Valentine's Day.

Estimated three-year risk premiums-sds and sharpe ratios : Compute the estimated 3-year risk premiums, SDs, and Sharpe ratios for the two portfolios.

User Account

All Pages