How much do you have to set apart at the end of each year

Reference no: EM132060496

Question: You are a prudent individual who wants to plan for your retirement. You are now 25 and plan to work for the next 40 years. You will retire at 65. Your actuarial tables tell you that you will live to be 85 (i.e. 20 years after retirement). You estimate that your expenses each year after your retirement till your death will be $20,000 (Assume that your expenses are at the end of each year). How much do you have to set apart at the end of each year for the next 40 years to be able to afford this? (Assume that you can invest the money at 10%)

Reference no: EM132060496

Questions Cloud

What is the probability that any manufacturing plant : What is the probability that any manufacturing plant is shut down if Moiraine's operates with two manufacturing plants?

Estimate of the rate of return for a project : Is the reciprocal of the payback method a more accurate estimate of the rate of return for a project with a very long life or a project with a very short life?

What will the value of jessica investment : She invests it in an account that yields 10% compounded semi-annually. What will the value of Jessica's investment be at the end of 5 years

What is the profitability index of the investment : The investment will cost you $ 6,592 today. If the appropriate Cost of Capital (quoted interest rate) is 11.8 %, what is the Profitability Index

How much do you have to set apart at the end of each year : You are a prudent individual who wants to plan for your retirement. You are now 25 and plan to work for the next 40 years. You will retire at 65.

Find the size of each of 4 payments made : Find the size of each of 4 payments made at the end of each year into a 6% rate sinking fund which produces $77000 at the end of 4 years.

Find the amount of the ordinary annuity : 1) Find the amount of the ordinary annuity based on the information given. R=$11,500, 6% compounded semiannually for 8 years.

Amount of gross profit was earned from the units sold : On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what amount of gross profit was earned from the 18 units sold

What exactly is are external reporting group : What exactly is are external reporting group/organizations to consider when forecasting a budget.

User Account

All Pages