About the retirement goal

Assignment Help Financial Management

Reference no: EM13850560

1) You believe you will need to have saved 500,000$ by the time you retire in 40 years in order to live comfortably. if the interest rate is 6% per year, how much must you save each year to meet your retirement goal?

2) You believe you will spend 40,000$ a year for 20 years once you retire in 40 years. if the interest rate is 6% per year, how much must you save each year until retirement to meet your retirement goal ?

3) a couple thinking about retirement decide to put aside 3000$ each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of 10,000$ that also can be invested.

a) how much money will they have accumulated 30 years from now ?

b) if their goal is to retire with 800,000$ of savings, how much extra do they to save every year?

Reference no: EM13850560

Questions Cloud

What is the effective annual rate on the loan : (effective interest rate) banks sometimes quote interest rates in the form of "add-on interest" in this case, if a 1-year loan is quoted with a 20% interest rate and your borrow $1000, then you pay back $1200. But you make these payments in monthly i..

Relationship between entrepreneurism and entrepreneurship : 1. Discuss the important relationship between entrepreneurism and entrepreneurship. 2. Through the course videos we discussed three types of establishments; salary substitute, lifestyle, and entrepreneurial. Compare and contrast these types and the..

Effective interest rate-what is the effective interest rate : (Effective interest Rate) A store will give you a 3% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. what is the implicit borrowing rate being paid by customers wh..

Prepare comprehensive business memo addressing each decision : Prepare a comprehensive business memo addressing each decision and your recommendation. The memo should be properly formatted as a business memo and formatted according to APA guidelines.

About the retirement goal : You believe you will need to have saved 500,000$ by the time you retire in 40 years in order to live comfortably. if the interest rate is 6% per year, how much must you save each year to meet your retirement goal? a couple thinking about retirement d..

Calculate payoff and profit at expiration for february : Calculate the payoff and profit at expiration for the February 190 calls, if you purchase the option at the stated price and at expiration the stock price is $195 and Calculate the payoff and profit at expiration for the February 195 puts

Compare client-server computing and cloud computing : Compare and contrast client-server computing and cloud computing. Determine the major risks and rewards that each offers to the organizations that use such approaches

Question regarding the organization anti-union culture : You have just received an email from your boss (the CEO). He wants you to help turn around the organization's anti-union culture. He has asked you to prepare a slide presentation (10-15 slides) with notes at the bottom that he (the CEO) will give ..

What was yield to maturity : On December 20, 1994 the Nippon Telegraph & Telephone Corporation (NTT) issued ¥1 billion of 10-year debentures due December 20, 2004. The debentures carried a 4 3/4% coupon. What was the yield to maturity of NTT’s debentures at the time of issuance?..

User Account

All Pages