Calculate equal annual retirement payment

Assignment Help Financial Management
Reference no: EM131847986

You enroll in a thrift plan in which you are allowed to contribute 8% of your pretax salary per year. Your employer will contribute an additional 4%. Your starting annual salary is $73,000 and you can expect annual salary increases of 2.75%. Use an interest rate of 7.25% in all your calculations. All thrift plan deposits are annual end of year deposits. After 15 years at this employer, you change jobs, accepting employment at a company that doesn't have a thrift plan. After 10 years you succed in havin this company start a thrift plan which is identical to that of your first employer.

Calculate the equal annual retirement payment for a 20 year retirement after completing a 46 year employment.

Reference no: EM131847986

Questions Cloud

What annual rate of return is earned : What annual rate of return is earned on a $1,000 investment when it grows to $2,800 in six years?
What is the beta of your portfolio : You construct a portfolio to match your friend's return. What is the beta of your portfolio?
How much total interest is earned on original deposit : Consider a $2,300 deposit earning 8 percent interest per year for five years. What is the future value? How much total interest is earned on original deposit.
Return of the fund between the beginning of the year : What is the rate of return of the fund between the beginning of the year and today?
Calculate equal annual retirement payment : Calculate the equal annual retirement payment for a 20 year retirement after completing a 46 year employment.
What is the future value of deposited for one year earning : What is the future value of $925 deposited for one year earning an 8 percent interest rate annually?
What atlanta company recorded as notes payable : determine what Atlanta Company recorded as Notes payable on its 2005 balance sheet.
Supported by the facts of his investment behavior : Describe one element that is supported by the facts of his investment behavior, and one which is not.
What is the yield one-year t-bonds one year from now : If the pure expectations theory is correct, what is the yield on 1-year T-bonds one year from now?

Reviews

Write a Review

Financial Management Questions & Answers

  Discussion-water cooler discussion on leadership styles

The water cooler has become a symbol in business life. Like any common gathering place in an office slightly removed from the cubicles and desks, the water cooler is a place to share information, both casual and vital, and to build networks with coll..

  The return on foreign bond is the sum of the yield

The return on a foreign bond is the sum of the yield over the holding period plus any capital gain/loss, plus currency gain/loss. ETFs on broad market indexes can be used to diversify away the sector or industry specific event risks borne in an other..

  Compute the bond current yield

A 3.70 percent coupon municipal bond has 15 years left to maturity and has a price quote of 95.65. Compute the bond’s current yield.

  Based on absolute purchasing power parity

Based on absolute purchasing power parity, what should an identical room in the U.S. cost?

  What are the best and worst case npvs

What are the best and worst case NPVs with these projections?- What is the base-case NPV?- What is the sensitivity of the NPV to changes in fixed costs?

  Stuart hall who notified the entire globe to the issue.

While Herr Blatter will also be keen to avoid artificial leg growth he will also take note that the items in the players' bermuda are most in need of tight control. It was none other than the expert commentator Stuart Hall who notified the entire ..

  Use at least two capital budgeting methods

A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. The company has a cost of capital of 12%. Which should the company do and why? You must use at least two capital budgeting methods.

  Calculate the firms tax on its operating earnings only

During the year just ended, Sherig Distributors, Inc had pretax earnings from operations of $487,000. In addition, during the year it received $26,000 in income from interest on bonds it held in Zig Manufacturing and received $26,000 in income from d..

  Develop static annual budget for the health center

You have been hired as the manager of a community health center. This health center provides medical care to children. One of your first tasks is to develop a static annual budget for the health center. In fact, the Board of Directors wants to see yo..

  Beneficial interest in transferred receivables equal

In December 2016, Bay Watch Company factored accounts receivable that had a book value of $500,000 to Spirit Bank, with recourse and estimates the fair value of the recourse obligation to be $10,000. Under this arrangement, Klein provides Bay Watch w..

  Fixed rate semi-annual pay debt

Company X has a $ 100 million, 2 year, 6% fixed rate semi-annual pay debt. Payments are actual count over a 360-day year. The company expects interest rates to fall and would prefer to have a floating rate debt. A $100 million, two year 5.5% semi-ann..

  What should you look out for in performing ­reconciliation

You notice there are some faint markings on portion of bank statement that could be ­alteration. What should you look out for in performing the ­reconciliation?

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