Decide to open retirement account at your local bank

Assignment Help Financial Management
Reference no: EM131570044

You decide to open a retirement account at your local bank that pays 8 percent/year/month (8 percent 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, a. What monthly withdrawal can you make if you want the account to last 15 years? b. What monthly withdrawal can you make if you want the account to last forever (with infinite withdrawals)?

Reference no: EM131570044

Questions Cloud

Botox facial care had earnings after taxes : Botox facial care had earnings after taxes of $280,000 in 2009 with 200,000 shares of stock outstanding.
Calculate and interpret the npvs for both scenarios : Now, Joe wants to examine the sensitivity of the NPV with respect to the model's variables. Calculate and interpret the NPVs for both scenarios
Find a way of dividing the campers into four canoes : Bruce, Edgar, Eric, Herb, Maurice, Michael, Richard, and Roland decide to go on a week-long canoe trip in Labrador.
Briefly describe the nature of the study : Briefly describe the nature of the study (problem, research questions or hypotheses, research methodology, procedures, participants, and results)
Decide to open retirement account at your local bank : You decide to open a retirement account at your local bank that pays 8 percent/year/month (8 percent per year compounded monthly).
Calculate the number of units of each model : In order for Fender to maximize profits, calculate the number of units of each model that should be manufactured
Electronic reserve readings and leadership blog template : Resources: Videos listed in the Week 5 Electronic Reserve Readings and Leadership Blog Template
Do deferred taxes become eliminated taxes at time of death : Do deferred taxes become eliminated taxes at the time of death?
Discuss the given network of roads : The diagram represents a system of roads from A to B. The mayor of town A wishes to send a message to the mayor of town B, and since all other means.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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