How much money must you save

Assignment Help Financial Accounting
Reference no: EM132997727

Question - Suppose you've started planning your retirement and you want to live in retirement only on your investment earnings. During retirement, you want to earn $50,000 per year before taxes and you figure your investments during retirment will earn 5 percent per year.

You save $40,000 per year for the next 10 years until you retire. While saving you expect your portfolio to earn 9.2 percent per year, compounded annually.

How much money must you save in order to earn $50,000 during retirement?

Reference no: EM132997727

Questions Cloud

Reflective of special background : Tell a story that could potentially help someone reach their potential AND resolve a problem or conflict. You are strongly encouraged to use/tell a story that i
Prepare the journal for the month of april : Below are the transactions of Happy Together Trading for the month of April of the year 2020. Prepare the Journal for the month of April 2020
What did you like the most about your game experience today : Describe the game and related business process in details and What did you like the most about your game experience today?
What factors are important for Willa to consider : Before undertaking a particular assurance engagement, what factors are important for Willa to consider
How much money must you save : You save $40,000 per year for the next 10 years until you retire. How much money must you save in order to earn $50,000 during retirement
What impact will be on net interest margin : In the event if a financial institution has a Negative GAP and interest rates increases in the market, what impact will be on Net Interest Margin
Which one of them will be eager to pay higher price : XYZ company has an infinite horizon with a constant dividend of RM25. Which one of them will be eager to pay higher price for this company's share
How much will you have to deposit now : You want to have a $ 54,516 college fund in 23 years. How much will you have to deposit now in an account with an APR of 6.3 % and monthly compounding
Speech of personal significance : Speech of Personal Significance - what you feel comfortable sharing and you don't have to do any research

Reviews

Write a Review

Financial Accounting Questions & Answers

  Journalize the transactions for professional products inc

Journalize the transactions for Professional Products Inc.Professional Products Inc., a wholesaler of office products, was organized on February 5

  Journalize the treasury stock transactions

It will hold these shares in the treasury until resold. On December 1, the corporation sold 1,200 shares of treasury stock for cash at $72 per share. Journalize the treasury stock transactions.

  Determine the carrying amount of the note at december

Determine the interest expense for the year ended December 31, 2015. Determine the carrying amount of the note at December 31, 2015.

  Find what is the yield to maturity for the bonds

What is the yield to maturity for the following bonds? Assume these are bonds issued in the U.S. Use the Excel RATE function to solve.10 years to maturity

  When a new partner is admitted to a partnership

When a new partner is admitted to a partnership

  Which firm should always select the capital structure

Which firm should always select the capital structure? produces the highest cost of capital. / maximizes the value of the firm. / minimizes taxes.

  Distinguishing factor that makes arrangement co-ownership

The distinguishing factor that makes an arrangement a co-ownership as opposed to a partnership would be:

  Acquisition cost of the refrigeration unit

Asset Measurement Assume that Jennifer's Juice (JJ), an organic food retailer in the United States, recently purchased a new refrigeration system for its Chapel Hill, North Carolina, store. How much should JJ record as the acquisition cost of the ref..

  What is your best strategy for playing

Suppose you have $10, and are going to play until you go broke or have $20. What is your best strategy for playing

  What is the firm after-taxed cost of debt

Calculate the price of this bond. How many bonds need to be issued to receive the required amount of fund? What is the firm after-taxed cost of debt

  How much will bond price change

Duration of 11 years with a bond price of 1000 and a yield to maturity of 4%. If the yield to maturity decreases by 1%. How much will bond price change?

  The paper on conflict and poverty in a world where boundarie

The paper on Conflict and Poverty in a world where boundaries and borders have blurred, and where seemingly distant threats can metastasize into immediate problems, the fight against global poverty has become a fight for global security.

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