Accumulate the necessary funds

Assignment Help Financial Management

Reference no: EM131189857

If you want your retirement fund to pay you $7,500 per month over the 25 years of your retirement, how much do you have to save per month for the next 40 years in a fund earning 13% to accumulate the necessary funds. (the retirement annuity earns 8.5%)?

Please show answers based on formulas in Excel.

Reference no: EM131189857

Questions Cloud

What are effects-complexities involved of insider trading : How do U.S. laws define insider trading? What are the effects and complexities involved of insider trading? Research and summarize a real case of insider trading and its resolution, if any.

Required to attend an inventory meeting : You are a recent College graduate and you are working in the accounting department of Macy’s. Next week, you are required to attend an inventory meeting for one store. You know this store well because you shop there frequently. Explain in this discus..

Added to new issues of debt and equity securities : Some derivatives are traded on exchanges; others are traded by financial institutions, fund managers, and corporations in the over-the-counter market, or added to new issues of debt and equity securities. Compare and contrast the different types of e..

What was wallaces total long-term debt : Long-Term Financing Needed At year-end 2016, Wallace Landscaping’s total assets were $1.8 million and its accounts payable were $370,000. Sales, which in 2016 were $2.2 million, are expected to increase by 25% in 2017. What was Wallace's total long-t..

Accumulate the necessary funds : If you want your retirement fund to pay you $7,500 per month over the 25 years of your retirement, how much do you have to save per month for the next 40 years in a fund earning 13% to accumulate the necessary funds.

Traditional fishing anchor and high-end yacht anchor : Easton Corporation makes two different boat anchors--a traditional fishing anchor and a high-end yacht anchor--using the same production machinery. The contribution margin of the yacht anchor is three times as high as that of the other product.

To increase the efficiency of its data processing operations : George Washington Insurance Co. is a large CMS intermediary that serves the Midwest states. To increase the efficiency of its data processing operations, the company recently purchased a large computer system for $2, 700.000 and spent $241, 175 to re..

Desires weighted average cost of capital : Central Systems, Inc. desires a weighted average cost of capital of 9 percent. The firm has an after-tax cost of debt of 5 percent and a cost of equity of 12 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted aver..

What is your expected rate of return for sumter stock : You can purchase one share of Sumter Company common stock for $80 today. You expect the price of the common stock to increase to $85 per share in one year. The company pays an annual dividend of $3.00 per share. What is your expected rate of return f..

User Account

All Pages