What is the current value of her retirement fund

Assignment Help Financial Management
Reference no: EM13870724

Please show your work. Ms. Ayala will receive $12,000 a year for thr next 20 years from her retirement fund. If a 6% interest rate is applied, what is the current value of her retirement fund? How much would you have to invest today to receive $50,000 in 10 years at 9.5% per year?

Reference no: EM13870724

Questions Cloud

What tax savings do they receive from investment expenses : Rich and Shauna Nielson file a joint tax return, and they itemize deductions. Assume their marginal tax rate on ordinary income is 25 percent. The Nielsons incur $2,700 in miscellaneous itemized deductions, excluding investment expenses. What tax sav..
When firm holds cash in excess of some necessary minimum : When a firm holds cash in excess of some necessary minimum, it incurs an opportunity cost. The opportunity cost of excess cash (held in currency or bank deposits) is the interest income that could be earned by the next best use, such as investment in..
What is the annual percentage rate on the loan : Assume that you deposit $700 every three months at 6% annual rate, compounded quarterly. How much will you have at the end of 20 years? You borrow a five year $13,000 loan with monthly payments of $250. What is the annual percentage rate (APR) on the..
How much must you deposit at the beginning of each year : Assume you deposit $2,000 every 6 months at 10% compounded semi annually. How much will you have at the end of 10 years? If you need $40,000 for your son's education in 10 years, how much must you deposit at the beginning of each year in the bank ear..
What is the current value of her retirement fund : Please show your work. Ms. Ayala will receive $12,000 a year for thr next 20 years from her retirement fund. If a 6% interest rate is applied, what is the current value of her retirement fund? How much would you have to invest today to receive $50,00..
Determine the value of the firms shares : Given the following firm and market information, determine the value of the firm's shares.
What is the required return on the companys stock : Bruer, Inc., is expected to maintain a constant 5.30 percent growth rate in its dividends, indefinitely. Required: If the company has a dividend yield of 3.80 percent, what is the required return on the company’s stock?
Measure the performance of your investment in fund : If you desire to forecast performance for next year the best forecast will be given by the____. If you want to measure the performance of your investment in a fund, including the timeing of your purchases and redemptions, you should use the _____.
Accomplishment will be reflected in firms financial ratios : The corner hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level. Assume that both the cost per unit and the selling price per unit also remained constant. This accomplishm..

Reviews

Write a Review

Financial Management Questions & Answers

  About the retirement plan

You are considering your retirement, and would like to have accumulated $1,839,829 by the time you retire in 27 years. If you anticipate that your average compounded rate of return over the 27 years until retirement will be 12%, how much will you nee..

  Average ratios to construct a pro forma balance sheet

Use the following industry average ratios to construct a pro forma balance sheet for Carlos Menza, Inc. The company's total assets are $___________(round to the nearest dollar) The company's fixed assets are $___________(round to the nearest dollar) ..

  What is the cash flow from disposal

Reversing Rapid Co. Purchases an asset for $183552. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a..

  Calculate the market value of renowned cola''s debt

Joe Brown and Fred Anthony are planning to invest in a Go Green project. Calculate the market value of Renowned Cola's debt

  The cost of debt and equity

Calculate a firm’s WACC given that the firm has $600,000 of debt and $1,400,000 of equity. The cost of debt and equity is 10% and 15%, respectively, and the firm pays no taxes.

  Define large sales of stockpiled gold by foreign governments

Suppose inflation is expected to increase the cost of producing gold by 10% a year but the price of gold does not change because of large sales of stockpiled gold by foreign governments.

  What is the expected rate of return on bunge stock

Bunge Corp. earned $7.75 per share and paid $3.25 in dividends in the year just ended. Bunge’s (trailing) P/E ratio is 9.0. If Bunge dividends are expected to grow at a 5% rate forever, what is the expected rate of return on Bunge stock?

  Profit change associated with sales changes

Changes in sales cause changes in profits. Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverage? Explain your answer.

  Whats wrong with using payback period

How can options sell for more than their exercise value and whats wrong with using payback period? What should we use instead? Why?

  What is the equipments after-tax net salvage value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $13 million, of which 85% has been depreciated. The used equipment can be sold today for $4.55 million, and its tax rate is 40%. What is the equipment..

  Problem 1budgets in managerial accountingsantiagos salsa is

problem 1budgets in managerial accountingsantiagos salsa is in the process of preparing a production cost budget for

  Describe how a firmrsquos net working capital nwc is

1.what are financial ratios and why are they useful?2.what are the three types of comparisons that can be made when

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