Couple thinking about retirement

Assignment Help Financial Management

Reference no: EM131835149

A couple thinking about retirement decide to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of $10,000 that also can be invested.

a. How much money will they have accumulated 30 years from now?

b. What are the calculations used to find this answer? using a financual calculator?

Reference no: EM131835149

Questions Cloud

Mechanical engineering has invented a money machine : Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow.

What is the arbitrage-free forward rate : What is the arbitrage-free forward rate? Is there an arbitrage opportunity? If so, specify all the transactions necessary to make an arbitrage profit?

To someone who acts in accordance with the CAPM : To someone who acts in accordance with the CAPM, which security is more risky, A or B?

What kind of deal did the running back scamper off with : If the appropriate interest rate is 11 percent, what kind of deal did the running back scamper off with?

Couple thinking about retirement : A couple thinking about retirement decide to put aside $3,000 each year in a savings plan that earns 8% interest.

What was annual increase in selling price : Assume that in January 2013, the average house price in a particular area was $286,400. What was the annual increase in selling price?

Saving up for down payment on house : Suppose you are saving up for a down payment on a house.

What is the present value of your? windfall : What is the present value of your? windfall? What is the future value of your windfall in three years? (on the date of the last? payment)?

Annual rate of interest must you earn on your investment : What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?

User Account

All Pages