How much money will be left to bequeath

Assignment Help Financial Management

Reference no: EM131839757

Graduates earned an average salary of $53,227 per year their first year after graduation. Assume that is the salary that you will earn following graduation at your first job when you graduate. Further assume that you stay at that job for your entire career and earn a 3% raise each year. If you start working when you are 20 years old, how much money will you earn per year when you are 60 (40 years later)? 2. According to financial planners, the average retiree requires approximately 70% of their last year’s working salary each year to live comfortably in retirement. Assume that you want to earn a fixed amount of interest each year in retirement. Your goal is to spend only the interest and still live comfortably. And, you want to earn the interest forever so that what remains can be passed onto your children, donated your favorite charity, or donated in honor of your favorite finance professor. That is, you want to earn a fixed amount, each year, for an indefinite amount of time. If you retire at 60 and can earn a 5% return, how much must you have saved to earn the required amount of interest? 3. If you die when you are 90 years old, how much money will be left to bequeath?

Reference no: EM131839757

Questions Cloud

Profit diagrams for the options on the expiration : Draw the profit diagrams for the following options on the expiration date.

Compute the ear for each investment choice : You have found three investment choices for a? one-year deposit: Compute the EAR for each investment choice.

Internet tracking infringes on consumer privacy rights : Critics claim that Internet tracking infringes on consumer privacy rights. Should marketers have access to such information?

Calculate the slope or beta : Calculate the slope or beta where the following facts exist: In Year 1 a share of IBM stock increased 8%, and in Year 2 it increased 10%.

How much money will be left to bequeath : Graduates earned an average salary of $53,227 per year their first year after graduation. how much money will be left to bequeath?

How performance and risk are different across stocks : Discuss how performance and risk (mean and standard deviation) are different across stocks, short-term government bonds, and long-term government bonds.

How can researcher build rapport with participant : What can be done to assist in obtaining relevant results from a survey? How can a researcher build rapport with a participant?

Sloped yield curve implies an expectation of falling future : A negatively sloped yield curve implies an expectation of falling future, short-term interest rates,

What is the value of the firm using wacc : What is the value of the firm using WACC as the appropriate discount rate?

User Account

All Pages