Saved at retirement to fund these planned withdrawals

Assignment Help Financial Management
Reference no: EM131312367

You are trying to calculate how much money you should have at retirement. On your 55th birthday you will retire and immediately make your first withdrawal of  $5,833.33. You plan to make 24 such withdrawals each year. You plan to continue withdrawing at that level and frequency until you are 82 years old. ?(Assume beginning of period withdrawals with the first withdrawal on your retirement date and no withdrawal on your final? birthday.) During retirement your savings will earn only 3.6 % per annum. How much do you have to have saved at retirement to fund these planned withdrawals? How much do you have to have saved at retirement to fund these planned withdrawals?

Reference no: EM131312367

Questions Cloud

Calculate the accumulated amount of savings at retirement : You want to compare two separate retirement savings? scenarios: (A) and? (B). In scenario? (A) you start? immediately, contribute for a few? years, but then stop contributing.? However, you leave the accumulated savings to compound until retirement. ..
What is the amount of the monthly payment : A Hummer H3 sells for $92,000 tax included. GMAC lends money at the rate of 9.2 % APR. If you buy the car and borrow through GMAC, then what are the monthly? (end-of-month) payments for a 10 ?-year term? What is the amount of the monthly payment?
Nasdaq index has historically grown at average annual rate : In February of 2000 the NASDAQ Composite index peaked at a level of 4,692 ?(just before the Tech Bubble? popped). In February of 2006 it was at a level of 2,076. The NASDAQ index has historically grown at an average annual rate of 9.5 %. How many yea..
What is the present value of promised payments : Ethan sells his car to Seamus. Seamus promises to pay Ethan $950 at the end of each year for 10 years. What is the present value of Seamus's promised payments if the interest rate is 8 %? What is the present value of Seamus's promised payments?
Saved at retirement to fund these planned withdrawals : You are trying to calculate how much money you should have at retirement. On your 55 th birthday you will retire and immediately make your first withdrawal of $5,833.33. How much do you have to have saved at retirement to fund these planned withdraw..
How big must his down payment be in order to obtain : Your brother wants to buy a new truck. He likes the new Toyota Tacoma with an asking price of $33,000. He will trade-in his Malibu for $4,000 and will finance any loan at 6.5% over a 5-year period. Your brother also doesn’t understand finance, and ex..
What is the present value of this stream of cash flows : Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 15 end-of-year payments starting one year from now. what is the present value of this stream of cash flows? What i..
The planes colide head on in a tragic accident : An airplane takes off from Montreal on Friday morning at 7:30 am heading to Los Angeles, California with 117 passengers and 7 crew members aboard the plane. The plane is traveling 430 mph. California is 2000 miles away. The plane is traveling 440 mph..
Free cash flows-what is the current value of operations : Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at 7% a year. Dozier’s WACC is 13%. What is Dozier’s horizon value? W..

Reviews

Write a Review

Financial Management Questions & Answers

  Consumer loans usually are repaid monthly-recurring income

Consumer loans usually are repaid monthly from recurring income. The bank's internal files are a valid source of credit history information. Indirect reference from employers are the best source of income verification.

  Retirement plan-what is rate of return on total invested

A publicly traded consulting engineering firm has a retirement plan wherein the company will match an employee’s stock purchases up to $ 5,000 per year, provided the employee has been with the firm for at least 10 years. If an employee hired 10 years..

  What is meant by business risk and financial risk

Dream Corp is comparing two different capital structures: an all equity plan (Plan A) and a lev ered plan (Plan B). Under Plan A the company would have 160,000 shares of stock outstanding. What is meant by business risk and financial risk? Explain th..

  Compute the net present value of each piece of equipment

Assuming a discount rate of 12%, compute the net present value of each piece of equipment. Puro equipment: $ Briggs equipment:

  What is its macaulay duration

What is its YTM? -  If the yield curve is a flat 3%, what is its Macaulay duration?- If the yield curve is a flat 10%, what is its Macaulay duration?

  Explain the two components of interest rate risk

Explain the two components of interest rate risk Are they affected by the maturity of the bond? Say your parents give you money for a 5 year olds college education. Assuming you had no intention of using your money for anything other than that purpos..

  Computer-based order entry system

Your firm is contemplating the purchase of a new $850,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $75,000 at the end of that time. You will save $320,000 before..

  What is the effective annual rate on loan

Suppose National Bank offers to lend you $10,000 for one year at a nominal annual rate (annual percentage rate) of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the y..

  Projected sales for the first four months

Dorian Industries' projected sales for the first four months of 2015 are given below: Jan. $150,000 Feb. $240,000 Mar. $180,000 April $200,000 20% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and ..

  How operational risk is related to technology risk

Why letter of credit guarantees are an off- balance sheet item? How operational risk is related to technology risk? How technological expansion can help an FI better exploit economies of scale and economies of scope? When insolvency risk occurs? How ..

  What is the expected capital gains yield-dividend yield

The next dividend payment by Wyatt, Inc., will be $3.10 per share. The dividends are anticipated to maintain a growth rate of 6.25 percent, forever. Assume the stock currently sells for $49.80 per share. What is the expected capital gains yield? What..

  What was average real risk-free rate and premium

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16 percent, –5 percent, 19 percent, 13 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bil..

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