Earn eight percent on investments

Reference no: EM13817775

a. Inflation is expected to average four percent for the long term and Mr. Smith earned $50,000 this year. How much must he earn in 20 years just to keep up with inflation and maintain the balance between his income and his increasing expenditures?

b. Jamie wants to have $2,000,000 for her retirement in 25 years. How much should she save annually if she thinks she can earn 10 percent on her investments?

c. The Flemings will need $100,000 annually for 20 years during retirement. How much will they need at retirement if they can earn a four percent rate of return?

d. The Hamptons want to have $3,500,000 for their retirement in 30 years. How much should they save annually if they think they can earn eight percent on their investments?

Reference no: EM13817775

Questions Cloud

Describe the local economy''s stage in the business cycle : Describe the current global economic conditions and their effect on local macroeconomic indicators for your good or service - Describe the local economy's stage in the business cycle.

Why banning the use of cell phones : Why banning the use of cell phones while driving should be mandatory nationwide

Prepare the bank reconciliation for collier cleaners : The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. using the following data, complete the bank statement reconciliation.

How statistical analysis is utilized in quality control : Explain how statistical analysis is utilized in quality control/ assurance, why is knowing statistical analysis an important skill to learn for managers and leaders.

Earn eight percent on investments : The Hamptons want to have $3,500,000 for their retirement in 30 years. How much should they save annually if they think they can earn eight percent on their investments?

Complete the income statement and cash flow projections : For year one of your NAB company's Business Plan, complete the Income Statement, Cash Flow Projections, and Balance Sheet sections from the "Business Plan Financials

Describe ways that brain development typically contributes : Describe two ways that brain development typically contributes to changes in thinking and behavior as individuals progress through adolescence.

Instance of earnings mismanagement and fraud : Search the internet and find an instance of "Earnings Mismanagement" and "Fraud". Tell us:

Positive and negative effects to employer : You have a job where you have a computer on your desk. Is it ok to access the internet for personal use during your workday? What are some of the positive and negative effects to you and your employer? Give a detailed explanation supporting your a..

User Account

All Pages