How much do you need to save each year

Reference no: EM131926465

Question: In 30 years, you plan to set up a fellowship fund that pays out 100,000 per year in perpetuity with an annually compounded discount rate of 5%. In order to set up the fund in 30 years, how much do you need to save each year (starting this year) assuming you can get a semi-annually compounded return of 10% on your savings for the next 30 years?

Reference no: EM131926465

Questions Cloud

The difference between a retailing firm and manufacturer : Briefly describe the difference between a retailing firm and manufacturer's disclosure of inventories on the balance sheet.

What would be the project irr using above data : Using an opportunity cost of capital of 12%, what is the Net Present Value? What would be the project IRR using the above data?

Position of an element on the periodic table : What are valence electrons? How do the number of valence electrons control the position of an element on the periodic table?

Where do you like most companies fail in the execution : It is important for a firm to understand the different strategy's that have for the various activities involved in the business.

How much do you need to save each year : In 30 years, you plan to set up a fellowship fund that pays out 100,000 per year in perpetuity with an annually compounded discount rate of 5%.

What is the force constant of spring : a) What is the force constant (in N/m) of this spring?

What will be optimal cash return point : HotFoot Shoes would like to maintain its cash account at a minimum level of $39,000, What will be its optimal cash return point?

What is the monthly interest rate : Mary Jo wants to buy a boat that is available at two dealerships in town. The price of the boat is the same at both dealerships.

What are the appropriate risk-adjusted discount rates : Would a fast-food restaurant chain, such as McDonald's, incur more risk by offering a new sandwich or opening a new store? Why?

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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!

Submit Assignment

User Account

All Pages