Decide to open retirement account at your local bank

Assignment Help Financial Management

Reference no: EM131452274

You decide to open a retirement account at your local bank that pays 9% / year / month (9% per year compounded monthly). For the next 20 years, you will deposit $400 per month into the account, with all deposits and withdrawals occurring at month’s end. On the day of the last deposit, you will retire. Your expenses during the first year of retirement will be covered by your company’s retirement plan. As such, your first withdrawal from your retirement account will occur on the day exactly 12 months after the last deposit.

What monthly withdrawal can you make if you want the account to last 15 years? $

What monthly withdrawal can you make if you want the account to last forever (with infinite withdrawals)? $

Reference no: EM131452274

Questions Cloud

Propose a new product or service for new company division : Propose a new product or service for the new company division. The division should be customer-focused with an innovative mission statement.

Does this phenomenon justify outsourcing : People are kidding themselves. It sounds so good-just pay a fixed, known amount to some vendor for your computer infrastructure, and all your problems go away.

Control health care costs : Discuss methods an employer may use to control health care costs.

General decision-making processes : What about the individual; what can the individual do to participate in these general decision-making processes when it comes to technology?

Decide to open retirement account at your local bank : You decide to open a retirement account at your local bank that pays 9%/year/month (9% per year compounded monthly).

Describe the artwork : Pick an artist who has been influenced by a topic in mathematic: Describe the artwork (include the illustration)

Ordinary gain sharing or profit sharing plan : How is an earnings-at-risk plan different from an ordinary gain sharing or profit sharing plan? How might earnings-at-risk plans affect attraction and retention

Why is audit consider to be final phase of budgetary process : Why is an audit considered to be final phase of a budgetary process? Are program evaluation more likely to be undertaken for political or for managerial reason.

Share the space for a three-year period : Given what you know about the preferences of the three parties, under what conditions would you expect the three parties to reach a negotiated solution to the problem of allocating the costs of the office space that will result in a negotiated agr..

User Account

All Pages