Earn an average annual rate of return

Assignment Help Finance Basics
Reference no: EM132050607

Maria has decided that she can live on $80,000 a year upon retirement, and she expects to live for thirty years after she has retired. If she can earn an average annual rate of return of 8% after she retires, what minimum amount must she have accumulated in her retirement account one year before she makes her first withdrawal in order to meet her requirement? Round your answer to the nearest dollar.

Reference no: EM132050607

Questions Cloud

The ways for-profit healthcare firm can increase its equity : what are some of the ways for-profit Healthcare firm can increase its equity?
What is the stock current price : The required rate of return is rs= 12% and the expected constant growth rate is G= 5%. What is the stock's current price?
How many shares did she purchase : Tammy invested $19,830 in a mutual fund at a time when the price per share was $10. The fund has a load fee of $50. How many shares did she purchase?
Company common stock is expected to pay : A company’s common stock is expected to pay $2 in dividends annually over the next four years.
Earn an average annual rate of return : Maria has decided that she can live on $80,000 a year upon retirement, and she expects to live for thirty years after she has retired.
Indifferent between the two lease options : Assume the prevailing interest rate is 8% per annum. A 4-year lease agreement requires you to pay $2,000 up front , followed by annual payments
What was remaining on the mortgage : should people still have to pay the difference between what their lender is able to get for home if they foreclose on it and what was remaining on mortgage?
Analyze the companys strategy : BBA 4951: Describe the company that you selected, the products/services they offer, and the history of the company.
Cost of equity raised by selling new common stock : You obtained the following data: D1 = $1.25; P0 = $22.50; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the expected return on the equity

Backwards has $266 million of debt outstanding at an interest rate of 10 percent and $686 million of equity (market value) outstanding. What is the expected return on the equity with this capital structure?

  Conduct a formal hypothesis test of the claim

Five pair of shoes print length and height were used to conduct a formal hypothesis test of the claim that there is linear correlation between the two variables. Use the value of r =0.591and find the appropriate test statistics method at 0.05 sign..

  Calculation of capm of a company

Calculate the CAPM for a company and write a report on it. The chosen company is Fidelity National Information Services (FIS) listed on the NYSE.

  The tate corporation has annual sales of 47 million the

the tate corporation has annual sales of 47 million. the average collection period is 36 days. what is the average

  Investment in usd

A strong dollar is very important; however, the taxation issued raised by the professor is potentially harmful. Why would a foreign investor invest money in the United State

  What is the simple interest rate

The simple interest charged on a 8-month loan of $6200 is $247.50. What is the simple interest rate?

  Number of manufacturing plants in the united states

You are a data analyst with John and Sons Company. The company has a large number of manufacturing plants in the United States and overseas. The company plans to open a new manufacturing plant. It has to decide whether to open this plant in the Un..

  What is meant by functional analysis

What is meant by functional analysis? When should it be performed (if at all)? Why is it important in system engineering? What purpose(s) does it serve?

  Implement and realize your objectives

Write a 700- to 1,050-word section for your business model and strategic plan in which you add your strategies and tactics to implement and realize your objectives, measures, and targets.

  Company weighted average cost of capital

Given the following information on Big Brothers, Inc. capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%.

  Discuss the moral and economic implications involved in the

discuss the moral and economic implications involved in the occupy wall street

  How much will you have to pay into the accounts

You expect that your daughter will go to college ten years from now. Taking account of inflation, you estimate that you will need $160,000.

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