Bonus points problem, [Bonus Points Problem] In 40 years,

Bonus points problem

Assignment Help Financial Management

Reference no: EM13890509

[Bonus Points Problem] In 40 years, you would like to retire on $150,000 a year in today's dollars. If the inflation rate = 4% a year for the next 40 years, how much must you have to equal today's $150,000?

a. $600,000

b. $156,000

c. $720, 153

Reference no: EM13890509

Questions Cloud

Covariance with the market return : The stock of Hammond corp. has a covariance with the market return of 0.031%. The variance of the market return is 0.041%. The estimated risk free rate is 4% and the estimated market rate of return is 10%. The estimated required return on Hammond's s..

Tax rate would investor be indifferent between two bonds : Corporate bonds issued by Johnson Corporation currently yield 12%. Municipal bonds of equal risk currently yield 7%. At what tax rate would an investor be indifferent between these two bonds?

What was wal-marts original strategy for creating value : What was Wal-Marts original strategy for creating value and how sustainable is the company's competitive advantage?

What was charge for depreciation and amortization : Talbot Enterprises recently reported an EBITDA of $7.0 million and net income of $2.45 million. It had $2.03 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization? Enter your answer in ..

Bonus points problem : [Bonus Points Problem] In 40 years, you would like to retire on $150,000 a year in today's dollars. If the inflation rate = 4% a year for the next 40 years, how much must you have to equal today's $150,000?

About how much should be in the account when you close it : You deposit $1,000 in an account. You expect the account to earn 0.75% annual interest for the first six years. Then you expect the account to earn 1.03% annual interest until you close the account after 15 years. About how much should be in the acco..

What is the bonds after-tax yield : An investor recently purchased a corporate bond which yields 11.5%. The investor is in the 36% combined federal and state tax bracket. What is the bond's after-tax yield?

Calculate the profit margin : The adjusted trial balance for Speedy Courier as of December 31, 2013, follows.

Compute billing per patient day using the memory units rate : Compute the cost per patient per day. Compute the billing per patient day using the memory unit's existing markup rate.

User Account

All Pages