Four beginning-of-year payments for college expenses

Assignment Help Financial Management

Reference no: EM131510685

You have just had your thirtieth birthday. You have two children. One will go to college 10 years from now and require four beginning-of-year payments for college expenses of $10,000, $11,000, $12,000, and $13,000. The second child will go to college 15 years from now and require four beginning-of-year payments of $15,000, $16,000, $17,000, and $18,000. In addition, you plan to retire in 30 years. You want to be able to withdraw $50,000 per year (at the end of each year) from an account throughout your retirement. You expect to live 20 years beyond retirement. The first withdrawal will occur on your sixty-first birthday. What equal, annual, end-of-year amount must you save for each of the next 30 years to meet these goals if all savings earn a 15 percent annual rate of return? [$3, 123.10]

Reference no: EM131510685

Questions Cloud

Tax liability after foreign tax credit : Calculate Elmo Inc.'s U.S. tax liability before foreign tax credit, FTC limitation, and U.S tax liability after foreign tax credit.

Annual percentage increase in the winners check : What was the annual percentage increase in the winner’s check over this period?

What is the yield to maturity of the bond-current yield : What is the yield to maturity of the bond? What is the current yield?

What would be the percentage change in the price of bond : what would be the percentage change in the price of Bond Sam and Bond Dave?

Four beginning-of-year payments for college expenses : One will go to college 10 years from now and require four beginning-of-year payments for college expenses of $10,000, $11,000, $12,000, and $13,000.

How many years do these bonds have left until they mature : How many years do these bonds have left until they mature?

What rate would you expect to see on treasury bill : What rate would you expect to see on a Treasury bill?

Determine the err for this project : Determine the ERR for this project.

How much will he need by his retirement date to satisfy : How much will he need by his retirement date to satisfy his goals(assuming he starts withdrawing his retirement income need at the very beginning of reitrement.

User Account

All Pages