How much money did he have for retirement

Assignment Help Financial Management
Reference no: EM131521892

Eugene began to save for his retirement at age 32, and for 12 years he put $ 200 per month into an ordinary annuity at an annual interest rate of 7% compounded monthly. After the 12 years, Eugene was unable to make the monthly contribution of $ 200, so he moved the money from the annuity into another account that earned 11% interest compounded monthly. He left the money in this account for 21 years until he was ready to retire. How much money did he have for retirement?

Reference no: EM131521892

Questions Cloud

What is the current price of stagegros stock : Stagegro Corporation is expected to pay a dividend of$3.00 per share next year. what is the current price of Stagegro's stock?
What is the standard deviation of the stock returns : What was the stock’s return for the missing year? What is the standard deviation of the stock’s returns?
Cash flow hedge or fair value hedge : Next, identify, using the FASB codification, the type of hedge it would be—cash flow hedge or fair value hedge.
How much will you have saved for retirement : You are 29 years old and decide to start saving for your retirement. How much will you have saved for retirement?
How much money did he have for retirement : He left the money in this account for 21 years until he was ready to retire. How much money did he have for retirement?
Differences between quoted and effective rates : When comparing investment it is best not to rely solely on quoted rates. Compounding typically leads to differences between quoted and effective rates.
How much money did he have for retirement : He left the money in this account for 20 years until he was ready to retire. How much money did he have for retirement?
The present value of the cash flows : The present value of the following cash flows is known to be $6,939.91; $500 today, What discount rate is being used?
Considered gift of less than the donor entire interest : if not transferred in trust, would be considered a gift of less than the donor's entire interest and, thus, not currently deductible?

Reviews

Write a Review

Financial Management Questions & Answers

  Contrast rights of bond holders and preferred stockholders

Describe and contrast the rights of bond holders and preferred stockholders. Which has the best position in a default, which one would you buy all other things being equal.

  Need to deposit annually now to meet your retirement goal

You are celebrating your 35th birthday today and you want to start saving for your retirement at age 65. You want to be able to withdraw $15000 per year on each birthday for 12 years following your retirement; the first withdrawal will be on your 66t..

  Implications of increasing average variable costs

As a manager of Wyoming Nopest-Supplies you are worried that your labor and input costs are rising. Develop a contingency table assuming the above as a base but you want to see what has to happen to BE Q sold with a 10%. 20% and 30% increase in A VC ..

  Uses tool and die machines to produce equipment for firms

Tool Makers, Inc. uses tool and die machines to produce equipment for other firms. The initial cost of one customized tool and die machine is $850,000. This machine costs $10,000 a year (after-tax) to operate. Each machine has a life of 3 years befor..

  Buying and selling stocks in an efficient market

Is stock research and analysis important when buying and selling stocks in an efficient market?

  What are the current total carrying costs

The Trektronics store begins each week with 460 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $41 per year and the fixed order cost is $84. What are the current total carrying costs? What is the eco..

  The expected annual inflation rates

The expected annual inflation rates in the US and UK for the next 3 years are 3 percent and 2 percent respectively. The current spot rate for pound is $1.22. Using the relative Purchasing Power Parity, forecast the expected future spot rates at the e..

  Where to issue dividends with the excess cash

Sally Corp. is an all-equity firm with 2000000 shares outstanding. Partition Corp has $22000000 in cash and expects future free cash flows of $120000000 per year. The cost of capital of Partition Corp. s investments is 8%. What would be the price of ..

  Discuss how life insurance impacts a decedents estate

Explain and discuss how life insurance impacts a decedent's estate, including various situations of ownership such as policies owned by the decedent or owned by others on the life of the decedent. Give some examples.

  What is the annual coupon payment

Assume you have purchased a bond with a Par Value of $1,000.00 paying 4.5%. You paid the market price. What is the annual coupon payment?

  What are the problems with americarsquos current medical

1.what concepts in the chapter are illustrated in this case? who are the stakeholders in this case?2. what are the

  All expenses are fully deductible and all gains are taxable

Kathy St Andrews is planning to buy a house for $140,000 by borrowing money at the rate of 9%. She expects to rent the house for 6 years, collecting $11,000 annual rent in advance each year. She thinks that she can sell the house for $180,000 after 6..

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd