Time value of money-retirement fund

Reference no: EM1329137

1. Kay Mart owns an annuity that will begin making semiannual payments of $7500 in perpetuity to her or her heirs. The first payment will take place 3 years and 6 months from today. She is considering selling the annuity to an investor whose required rate of return is 11% EAR. How much will she get for her annuity if she decides to sell?

2. You are now 35 years old. You wish to retire in 30 years on $6000 per month. You believe Social Security will provide you at that time with $1800 per month?the rest will have to be self-funded. You want your retirement account to last 30 years?you also want to make your first of 360 monthly withdrawals on the day you retire. Your retirement funds will be deposited in an insured account with a .35%/month return. Your savings will consist of a bond fund earning 2.75% semiannually. How much do you need to deposit each year?with the first deposit coming one year from today?in order to meet your retirement goal?

Reference no: EM1329137

Questions Cloud

Assume that we are looking in a programming language : suppose that we are looking in a programming language that allows underscore (_) in variable names. When a scanner sees a character string such as AB_CD, is it more likely to identify this string as the single five-character token AB_CD or as thre..

The controller''s role in strategy implementation : The controller's role in strategy implementation.

Motivate team to stay and actively involved in project : What would you do to motivate the team to stay, be actively involved in the project, and complete the assignment on schedule?

The disadvantages of specifying by performance : What are the disadvantages of specifying by performance? What are the advantages?

Time value of money-retirement fund : Kay Mart owns an annuity that will begin making semiannual payments of $7500 in perpetuity to her or her heirs. The first payment will take place 3 years and 6 months from today. She is considering selling the annuity to an investor whose required..

Us constitution and abortion : What specific language in the U.S. Supreme Court decision may have contributed to the ongoing debate to overrule Roe v. Wade?

What is a data type in c : What is the difference between a constant and the variable in a program? Why would you use one or the other.

What challenges do you think a non family member employee : What challenges do you think a non family member employee of a family business might face daily and long term?

Finding future value of investments : Suppose you withdraw the interest every year. What will be your total earnings? Why does this differ from the interest earned in (a)?

User Account

All Pages