What uniform amount can you withdraw from the account

Assignment Help Business Economics
Reference no: EM131005223

You have opened a retirement account that will pay 4% interest per year. You plan to deposit 8% of your annual salary into the account for 40 years before you retire. Your first year's salary is $48,000, and you expect your salary to grow 3.5% each year. How much will be in your account after you make the last deposit? What uniform amount can you withdraw from the account for 20 years beginning one year after your last deposit?

Reference no: EM131005223

Questions Cloud

The comparative advantage in producing each good : Suppose Jilbo can make 18 flower pots or 2 coffee mugs per day. Her cousin Jimbo can make 10 flower pots or 6 coffee mugs per day. What is the opportunity cost for Jimbo of producing 1 flower pot? or 10 flower pots? Who has the comparative advantage ..
What barriers to advancement currently exist in your state : Discuss the work of the Robert Wood Johnson Foundation Committee Initiative on the Future of Nursing and the Institute of Medicine research that led to the IOM report, "Future of Nursing: Leading Change, Advancing Health."
Sweetwater furniture company leased office space : Record Sweetwater's rent payment at December 31, 2015 (the fifth rent payment) and December 31, 2025 (the 15th rent payment).
What are the governments fiscal policy options : What are the government's fiscal policy options for ending a severe recession? What are the short term and long term consequences of using fiscal policy for ending a server recession? What are the Monetary policy tools the Federal Reserve Board uses...
What uniform amount can you withdraw from the account : You have opened a retirement account that will pay 4% interest per year. You plan to deposit 8% of your annual salary into the account for 40 years before you retire. Your first year's salary is $48,000, and you expect your salary to grow 3.5% each y..
Discuss the effectiveness and the limitations of this model : Discuss the influence one component has on the others (e.g., what influence do emotions have on behaviors?). Discuss the effectiveness and the limitations of this model
What are the guidelines for improving perceptions : What is the most important thing to remember about perceptions when attempting effective communication? Why? What are the guidelines for improving perceptions and communication and why are they important
What is the effective annual interest rate : What is NIC's lease liability at the inception of the lease (after the first payment)? What is the asset's residual value expected at the end of the lease term?
Define intelligence and intelligence testing : Define intelligence and intelligence testing. Describe how intelligence testing is used as a means of assessing normal intelligence and targeting special needs children

Reviews

Write a Review

Business Economics Questions & Answers

  Novel just in time for holiday giving

Your publishing house is about ready to release John Grisham's newest novel just in time for Holiday giving.

  Consumers in an exchange economy with two goods

Suppose that there are two consumers in an exchange economy with two goods. There are total of ten units of each good. The initial endowments for these consumers are (e1x, e1y) for consumer 1 and (e2x, e2y) for consumer 2, where e2x = 10 – e1x and e2..

  What is the extended repair contract worth now

A vendor is offering an extended repair contract on a machine. The firm's experience is that this will cover repair costs over the next four years of $200, $200, $400 and $500. At 6%, what is the extended repair contract worth now?

  Monopolist instead of set of perfectly competitive firms

What is the externality associated with an individual driving on a congested highway? How do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..

  Sufficiently to transform the frustrating situation

Before 1976, the airlines often denied boarding to passengers who were flying on urgent business in favour of passengers who were not in any particular hurry to reach their destinations. This would seem to be a cooperative failure.

  Take advantage of recent rapid growth in demand

An established firm is considering expanding its capacity to take advantage of a recent rapid growth in demand. It can do so in two ways. It can purchase fungible, general-purpose assets that can be resold close to their original value, if their use ..

  Owners of the only gambling casino in wisconsin spend large

Suppose which the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their monopoly of gambling.

  The various estates in land described

The various estates in land described by the author of your text in Chapter 3 arose mostly out of the struggle between the English Crown’s need for revenue and the efforts of the holders of the land to avoid taxes. Are these estates useful in this da..

  Diagram of the market for money and the aggregate supply/

Draw, side by side, a diagram of the market for money and the aggregate supply/ aggregate demand to illustrate how inflation is created. Initiate the process in the AS-AD diagram with negative supply shock that the central bank decides to "accommodat..

  What type of organizational structure is the company current

What type of organizational structure is the company currently using?

  Increase when the rate of inflation

"I'd rather have a 1% pay cut when prices fall by 3% than a 5% pay increase when the rate of inflation is 8%." This is an example of:

  Why is not exclusive use of method three cost effective

Suppose you need to remove 70 exotic fish from a lake into which they were unintentionally introduced. You have three possible removal methods, methods 1,2 and 3. How much of each method should you use to achieve the removal cost effectively. Why isn..

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