How much does bart need to set aside in real terms

Assignment Help Financial Management

Reference no: EM132027046

Knowledge of Mr. Homer’s retirement expertise has spread. Now his friend, Bart, has asked for help with his retirement planning. Bart, who turned 21 years old today, is just starting his first full time job and has nothing set aside in his retirement account. He plans to add an equal amount in real terms at the end of each of the next 46 years so that he can retire at age 67. His goal is to build a retirement account that will enable him to make 30 annual withdraws with a purchasing power of $60,000 (at today’s prices) on his 68th through 97th birthdays. His retirement account is expected to earn 7.00% per year and the expected inflation rate is 2.00% per year. How much does Bart need to set aside in real terms at the end of each of the next 46 years to meet his retirement goal?

Reference no: EM132027046

Questions Cloud

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.52 million.

Evaluating project for ultimate recreational tennis racket : You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand.

What is the probability that you randomly select a black : What is the probability that you randomly select a black, don't put the black back, then draw another black

Find the equation of the regression line for the given data : Find the equation of the regression line for the given data. Then use the regression equation to predict the value of y for each of the given? x-values.

How much does bart need to set aside in real terms : How much does Bart need to set aside in real terms at the end of each of the next 46 years to meet his retirement goal?

Compute the price per share of widget stock : Based on this information, compute the price per share of Widget stock.

Estimate the number of workers in the sample : Estimate the number of workers in the sample who are union members by giving the mean of the relevant distribution

Create an investigative toolkit : Create an investigative toolkit. What tools would you have in your toolkit? Document the following: the features of each tool.

What is the company expected growth rate : What is the company's expected growth rate? what portion of its net income is the firm expected to pay out as dividends?

User Account

All Pages