What annual amount will you be able to withdraw

Assignment Help Econometrics
Reference no: EM13208260

You decide to open an individual retirement account (IRA) at your local bank that pays 8 percent/year compounded annually. At the end of each of the next 40 years, you will deposit $4,000 into the account. Three years after your last deposit, you will begin making annual withdrawals. What annual amount will you be able to withdraw if you want the withdrawals to last a) 20 years? b)forever?

Reference no: EM13208260

Questions Cloud

Design a program that ask for the price of each item : Design a program that ask for the price of each item, and then displays the subtotal of the sale, the amount of sales tax and the total. Assume the sales tax is 6 percent. Need help with this question.
Explain hexane has a negligible absorbance : Hexane has a negligible absorbance above 200nm. S sample of Hexane containing 20.0 mg/L of an aromatic compound (MW=114.3 as impurity had an absorbance value of 0.351 at 254 nm in a 2.00 cm pathlength cuvet
Plan the logic for a program for the sales manger : plan the logic for a program for the sales manger of the couch potato furniture company. The manger needs a program to determine the profit on any item sold. Input includes the wholesale price and retail price for an item.
Write a program that implements binary search first using : To understand the value of recursion in a programming language write a program that implements binary search first using recursion and without recursion.
What annual amount will you be able to withdraw : You decide to open an individual retirement account (IRA) at your local bank that pays 8 percent/year compounded annually. At the end of each of the next 40 years, you will deposit $4,000 into the account. Three years after your last deposit.
Explain what is value of the potential of the half reaction : A solution is 0.05 M in Cr2O7^-2 and 0.003 M in Cr3-. If the pH is 4.0, What is value of the potential of the half reaction?
Assume that the input to each statement is the same : Assume that the input to each statement is the same: 5 28 36 a. cin >> x >> y >> ch; b. cin >> ch >> x >> y; c. cin >> x >> ch >> y; d. cin >> x >> y; cin.get(ch);
How is money supply affected if central bank prints sheckels : Currency held by the public is 1000 sheckels, bank reserves are 200 sheckels, and the desired reserve-deposit ratio is 0.2. What is the money supply How is the money supply affected if the central bank prints 100 sheckels
Can the capability also be used to install windows 7 : What Windows Server 2008 capability enables them to do the mass installation quickly and efficiently? What general steps are involved in setting up this capability? Can the capability also be used to install Windows 7 on the 24 new client workstat..

Reviews

Write a Review

Econometrics Questions & Answers

  How many tons of steel do the residents of indiana prefer

East Chicago is a major production center of steel in the United States. In the process of producing steel, the firms in this are emit pollution both into the air and into the water which adversely affect Indiana residents. The EPA has determined ..

  Determine the economic service life and corresponding aw

A new gear grinding machine for composite materials has a first cost of P=$100,000 and can be used for a maximum of 3 years. Its salvage value is estimated by the relation S=P(0.85)n, where n is the number of years after purchase. The operating cost ..

  Calculate the profit by charging the optimal block price

Suppose you are the marketing manager for the Fruit of the Loom. An individuals' inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 - 3Q (in cents). If cost to Fruit of the Loom to producing women's underwear is C(Q) ..

  How much cement does each firm produce

CEMEX and Holcim are two cement manufacturers in Durham. They produce cement and sell it into a competitive world market at the fixed price of $60 per ton. Producing one ton of cement also produces one ton of air pollution that negatively impacts ..

  Linear relationship between explanatory variables

Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters

  Determine the amount alistair must deposit in june

Alistair deposited $10,000 on July 1, 2005, in a first fund that gives interest of 31?2 percent compounded semiannually and matures on June 1, 2012. He knows that, on December 18, 2012, he can deposit money in a second fund.

  Demand curve for the restaurant

Suppose you have been recently employed as manager of a restaurant and a very important credit card firm offers you a deal that is supposed to raise your sales.

  By how much will the money supply change

The Federal Reserve has just purchased $100 million in Treasury bills from commercial banks. b. If the public holds a fixed amount of currency (so that all loans create an equal amount of deposits in the banking system), the minimum reserve ratio ..

  What would drive the market toward the equilibrium

If the actualy price in this market were above the equilibrium price, what would drive the market toward the equilibrium. If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium

  What range of payments will the farmer accept

What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day Assuming that the farmer can dispose of the $7 from the writer as she wishes, what range of payments will the beekeeper accept

  How to verify all of the prices and quantities calculated

Now assume that intermediaries come from a competitive market with an equilibrium price of $8 per unit for their services, that is, any buyer or sellerwho wants an intermediaries services must pay $8 for them.

  Calculate the firms marginal revenue curve

now suppose the firm is able to charge an entry fee, as well as a price for every unit sold. What is the optimal entry fee, the price per unit, and the deadwight loss. Calculate them and show these on the graph below.

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