What amount do you need to deposit

Assignment Help Business Economics
Reference no: EM131460231

1) You are celebrating your 35th birthday today and want to start saving for your retirement at age 65. You want to be able to withdraw $15,000 per year on each birthday for 12 years following your retirement; the first withdrawal will be on your 66th birthday. You intend to invest your money in an account that pays 9% per year. You want to make equal, annual payments on each birthday into this account. 

a. If you start making these deposits on your 36th birthday and continue until you are 65, what amount must be deposited annually to reach your goal?

b. Suppose you just inherited a large sum of money. Rather than making equal annual payments, you decide to make one lump-sum payment on your 36th birthday to cover your retirement needs. What amount do you need to deposit?

c. Suppose your employer will contribute $250 into the account every year. In addition, you expect a $10,000 distribution from a family trust fund on your 55th birthday, which you will also put into the retirement account. What amount do you need to deposit annually now to meet your retirement goal?

Reference no: EM131460231

Questions Cloud

Prepare the statement of changes in net position : Prepare the Statement of Changes in Net Position of Flood Control Commission for the month ended October 31, 2017. Prepare the Statement of Budgetary Resources.
At what rate have sales been growing : Sawyer Corporation's 2015 sales were $5 million. Its 2010 sales were $2.5 million.
Find probability-selected patient suffered from depression : At four community health centers on Cape Cod, Massachusetts, 15,164 patients were asked to respond to questions designed to detect depression.
Barbara must buy four new tires for her car : Barbara must buy four new tires for her car. She is considering buying tires that are $25 apiece more than her regular brand.
What amount do you need to deposit : Rather than making equal annual payments, you decide to make one lump-sum payment on your 36th birthday to cover your retirement needs.
What was your role in your family group : What was your role in your family group? What was the most challenging decision your family made during the simulation?
Withdrawal penalty since he is separating : Jerry, who is age 56, was just called into the President's office at Napa Sunrise, Inc.
Compusystems was supposed to pay a manufacturer : CompuSystems was supposed to pay a manufacturer $19000 on a date 4 months ago. CompuSystems is proposing to pay $10000 today and the balance in 5 months
What was the implied probability of spain winning the final : On Sunday, July 11, 2010, Spain and the Netherlands played in the 2010 World Cup Final in Johannesburg. On the eve of the final, many betting lines.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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