Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
This is a classic retirement problem. A time line will help in solving it. Your friend is celebrating her 40th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $129,000 from her savings account on each birthday for 20 years following her retirement; the first withdrawal will be on her 66th birthday. Your friend intends to invest her money in the local credit union, which offers 7.4 percent interest per year. She wants to make equal annual payments on each birthday into the account established at the credit union for her retirement fund. a. If she starts making these deposits on her 41st birthday and continues to make deposits until she is 65 (the last deposit will be on her 65th birthday), what amount must she deposit annually to be able to make the desired withdrawals at retirement? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Annual deposit amount $ 19778.01 b. Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lump sum payment on her 40th birthday to cover her retirement needs. What amount does she have to deposit? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Amount deposit $ 222412.07 c. Suppose your friend’s employer will contribute $3,900 to the account every year as part of the company’s profit-sharing plan. In addition, your friend expects a $179,000 distribution from a family trust fund on her 55th birthday, which she will also put into the retirement account. What amount must she deposit annually now to be able to make the desired withdrawals at retirement? I have already answered parts a and b.
You expect to receive $3,000 in 3 years (i.e., end of year 3). Then you plan to invest it earning 5% per year. SHOW ALL WORK using TVM buttons on the TI BAII Plus Calculator. What will you have at the end of year 8? You are presented with an investme..
My cousin Robert wishes to have $10,000 per year as a retirement supplement for 20 years (from age 65-85). He is now 40 years old. How much must he save each year for the next 25 years if he assumes that his savings will earn 12% annually?
Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.50% per year. What is the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithme..
Fresno Corp. is a fast-growing company that expects to grow at a rate of 23 percent over the next two years and then to slow to a growth rate of 14 percent for the following three years. If the last dividend paid by the company was $2.15.
The Ogi Corporation, a construction company, purchased a used pickup truck for $22,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $8,000 a year. At the end of 4 years,..
What would the new debt ratio be if the machine were leased? If it is purchased?c. Is the financial risk of the business different under the two acquisition alternatives?
JKE Company just paid a dividend of $2 per share. Future dividends are expected to grow at a constant rate of 8% per year. What is the value of the stock if the required return is 10%?
Select a random sample of size 50 from the given 1000 cases. You will use this sample data to complete tasks 2 to 6. Explain how you obtained your sample in the appendix and provide a list of your customer data.
Problem on financial management.
TIm Dye the CFO of Blackwell Aoutomotive, is putting together this year's financial statements. He has gathered the following Balance Sheet information: HOW MUCH LONG TERM DEBT DOES BLACKWELL AUTOMOTIVE HAVE?
You own a security that provides an annual dividend of $170 forever. The security’s annual return is 7%. What is the present value of this security? Round your answer to the nearest cent
Sprockets sell for $5 and have fixed costs of $1 million per year and variable costs of $2 per sprocket. What is the minimum number of sprockets the company must manufacture annually to not lose money? Solve using excel functions.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd