Your job pays you only once a year for all the work you did

Assignment Help Finance Basics
Reference no: EM13574641

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $50,000, and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 2 percent of your annual salary in an account that will earn 8 percent per year. Your salary will increase at 4 percent per year throughout your career. How much money will you have on the date of your retirement 40 years from today?

Reference no: EM13574641

Questions Cloud

Harvard company purchased equipment having an invoice : harvard company purchased equipment having an invoice price of 11500. the terms of sale were 210 n30 and harvard paid
Indicate if the account is a permanent p or temporary t : the following are selected accounts of laura gibson company on december 31nbsppermanent p or temporary tnormal balance
Hw should an insurance company identify potential exit : how should an insurance company identify potential exit markets for insurance contracts and for embedded derivatives
Flip company purchased equipment on july 1 2011 for 90000 : flip company purchased equipment on july 1 2011 for 90000. it is estimated that the equipment will have a 5000 salvage
Your job pays you only once a year for all the work you did : your job pays you only once a year for all the work you did over the previous 12 months. today december 31 you just
Red pine inc established a 400 petty cash fund several : red pine inc. established a 400 petty cash fund several months ago and replenishes it at the end of each month. during
A company prepares financial statements in order to : a company prepares financial statements in order to summarize financial information.below are a list of financial
Straight-line depreciation is used and the companys income : irr. the michener company purchased a special machine 1 year ago at a cost of 12000. at that time the machine was
Hank itzek manufactures and sells homemade wine and he : hank itzek manufactures and sells homemade wine and he wants to develop a standard cost per gallon. the following are

Reviews

Write a Review

Finance Basics Questions & Answers

  How much value to the unlevered firm per dollar of debt

Given the following information, leverage will add how much value to the unlevered firm per dollar of debt? Corporate tax rate: 30% Personal tax rate on income from bonds: 20% Personal tax rate on income from stocks: 0%

  Nugent communication corp is investing 10800655 in new

nugent communication corp. is investing 10800655 in new technologies. the company expects significant benefits in the

  Company x is considering changing its capital structure in

company x is considering changing its capital structure in light of the tough business environment. currently company

  Write a policy brief that explains the choice

Write a policy brief that explains the choice regarding Medicaid expansion that your state faces following the passage of the ACA and the Supreme Court decision- idea that residents of states that are not expanding will be paying increased federal ..

  What is the forward price

A stock is expected to pay a dividend of $2.20 per share in 1 months and in 4 months. The stock price is $54, and the risk-free interest rate is 11% per annum with continuous compounding for all maturities. An investor has just taken a long position ..

  What is the amount to use as the annual sales

What is the amount to use as the annual sales figure when evaluating this project?

  Calculate the amount of capital funding the fitness studio

The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.155 million of new debt. The offer price (and face value) on the debt was $1,000 per bond and the underwriter's spread was 5 percent of the gross proceeds.

  What is the npv of accepting the system

What will be the annual net savings? Assume that the T-bill rate is 2.6 percent annually.

  Calculate capital gain and total return

Before one year, Mr. Seth Cohen invested $10,400 in 200 shares of 1st Industries, Inc. stock and just received a dividend of $600.00.

  The companys last dividend d0 was 125 its beta is 120 the

answer the following five questions on a separate document. explain how you reached the answer or show your work if a

  What are requirements of the omb circular a-94

What are requirements of the OMB Circular A-94 in calculating benefit-cost ratios of public sector projects funded by the Federal Highway Administration? I need more details.

  Would the bond be priced at a premium or discount

Kessen Inc.'s bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. Should an investor decide to purchase this bond today, would the bond be priced at a premi..

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