Company wants to save money to meet three objectives

Assignment Help Financial Management

Reference no: EM131863075

1. A well-defined IPS should include of the following, EXCEPT:

A) Investment strategy and asset allocations

B) How much should be invested

C) Definition of duties and objectives

D) Purpose and scope

2. A company wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $21,000 per month for 30 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 15 years at an estimated cost of $728,000. Third, after he passes on at the end of the 30 years of withdrawals, he would like to leave an inheritance of $600,000 to his nephew Frodo. He can afford to save $2,100 per month for the next 15 years.

If he can earn a 11 percent EAR before he retires and a 10 percent EAR after he retires, how much will he have to save each month in years 16 through 30?

$3,724.34

$3,876.35

$3,800.34

$4,833.18

$5,389.20

Reference no: EM131863075

Questions Cloud

Completed the purchase of new dell computers : Dubois Inc. has completed the purchase of new Dell computers. The report file must reveal the formulas that you create when a specific cell is clicked.

What will be the size of her daughter monthly withdrawals : Assuming the value of money will average 6% compounded monthly, what will be the size of her daughter's monthly withdrawals?

What must be the size of each equal semiannual payment : If money is worth 16% compounded semiannually, what must be the size of each equal semiannual payment?

Financial analyst in the finance department : As a Financial Analyst in the Finance Department of Zeta Auto Corporation, What will be the Net Present Value of the project?

Company wants to save money to meet three objectives : A company wants to save money to meet three objectives. how much will he have to save each month in years 16 through 30?

Inventory management costs of post card inventory : What is the annual total inventory management costs of post card inventory?

Hedge fund claims correlation coefficient : The hedge fund claims correlation coefficient between the annual returns on the S&P and the hedge fund in the same year is zero.

Any preferred stock outstanding : Company XYZ doesn’t have any preferred stock outstanding but plans to issue some in the future and therefore has included in its target capital structure.

Annual four-year interest rate using expectations theory : Estimate the annual four-year interest rate using the Expectations theory.

User Account

All Pages