Back on track for original retirement prediction

Assignment Help Risk Management

Reference no: EM132002383

Brian just graduated from engineering school and landed a sweet job earning $60000 per year. He expects his salary to increase by 4.3% per year. At the end of each year he will invest 10% of his salary into an investment account that earns 8.1.% per year compounded annually. He hopes to retire in 45 years. If all goes according to his plan, how much money will be in his retirement account when he retires? $ After working for almost a year Brian decides he would rather spend Christmas in Mexico then put money in his retirement account. Each year he finds something else he wants to do with his retirement money until 15 years have passed and he realizes he has zero savings. Sure enough his salary increased by exactly what he had predicted over 15 years. He vows to start putting 10% of his salary away each year from then on. If all goes according to plan how much will be in his account after 30 more years when he reaches the age he would like to retire? Brian is sad when he realizes how far he has fallen behind in his retirement planning. He decides to buy a lottery ticket hoping that he can use the winnings to put him back on track for his original retirement prediction. How much does he need to win and invest at the end of his 15th year working in order to get back to where he would have been if he had followed his original plan?

Reference no: EM132002383

Questions Cloud

Create your own company or organization : Create your own company or organization. This organization should address the needs and wants of consumers in Toronto, Canada

Time value of money principle for non-profit organizations : What are the advantages of the Time Value of Money principle for Non-profit Organizations? Please consider both revenue and expense perspectives.

Develop a marketing plan for that product in target country : Students will be completing a County Market Report where you will explore how to take a product (approved by the instructor) into a foreign country.

How your college education can help you get it : Write a paragraph (or approximately 300 words) describing what you want and how your college education can help you get it.

Back on track for original retirement prediction : He decides to buy a lottery ticket hoping that he can use the winnings to put him back on track for his original retirement prediction.

Summarise the process for developing a business idea : Summarise the process for developing a business idea and for determining the start-up costs for a new business .

Calculate his interest paid on the mortgage : Next year Professor Cole had to calculate his interest paid on the mortgage in 2017. How much interest was paid in 2017?

Detailing the different business entity types : Detailing the different business entity types we learned in class. You can use what you learn from google, the book, etc.

Examine the position descriptions : Examine the Position Descriptions (PD) provided with the AT3 resources and use ONE that is most relevant to you; it may not be exactly what you want to do

User Account

All Pages