Reference no: EM133125097
Questions -
Q1. An executive wants to take out $50,000 from her retirement account at the beginning of each year that she is retired. She estimates her account will earn 3% during retirement and she will need to be able to withdraw the funds each year for 25 years. How much money will the executive need to have in her account when she starts retirement?
Q2. Continuing the scenario from question 6: The executive will have deposited funds at the beginning of each month into her retirement account for 30 years prior to retirement. The account will have averaged a 9% return. How much money will she need to have deposited each month to reach her retirement balance goal (from question 6)?
Q3. Your best employee just won the state lottery. She can either take a one-time lump sum payout of $4,000,000 now or choose an annuity option that pays $275,000 at the beginning of each year for 20 years. Since she plans to stay working for your company for 20 more years and then retire, your employee is considering how much money each option would result in if put into an account earning 3% annual interest and left untouched until retirement. Calculate the future value of each of the two payout options.
Q4. An assembly plant anticipates needing to replace some of its machinery in 4 years, at a current cost of $2 million. The company expects annual inflation of 3%. It also believes it can earn an 8% return on its money, compounded quarterly. How much money would the company have to put into an account at the end of each quarter to have the anticipated future cost of the machinery available to withdraw at the end of 4 years?
Q5. Your company has a 401K account for the employees. The company matches the first 5% of contributions that employees make to their accounts. One employee contributes $1,000 at the end of each month and expects to do so for the next 20 years. Assuming an average rate of return of 7%, compounded monthly, how much money will the employee have in the account at the end of 20 years?
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Differences between bond and stocks
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Determine the unit cost for each model
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Assignment on foreign exchange markets
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Licensing requirements for employees and employers
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How much money will the employee have in the account
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What do see as potential trends in field of investigation
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How drug enforcement is directed at the consumer
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Calculate the value of a statistical life
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How much should you charge for manufacturing overhead
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