How much must she save each year at the end of years

Reference no: EM13281839

Brenda is 25 years old today and she wishes to accumulate enough money over the next 35 years to provide for a 20 year retirement annuity of $100,000 at the begining of each year, starting with her 60th birthday. She can save $2,000 at the end of each of the next 10 years and $3,000 each year for the following 10 years. How much must she save each year at the end of years 21 through 35 to obtain her goal? Assume that the average rate of return over the entire period will be 10%. Please show all work.

Reference no: EM13281839

Questions Cloud

Draw two break-even graphs-one for a conservative firm : Draw two break-even graphs-one for a conservative firm using labor-intensive production and another for a capital-intensive firm. Assuming these companies compete within the same industry and have identical sales, explain the impact of changes in ..

Calculate the capacitance per unit lengthbetween the two : Consider two parallel cylindrical conductors with radius aseparated by distance 2d. Calculate the capacitance per unit lengthbetween the two. You may assume that the distance d is much greaterthan the wire radius a.

What is the pretax required return on gordon stock : If the aftertax expected returns on the two stocks are equal (because they are in the same risk class), what is the pretax required return on Gordon's stock?

How many extra electrons are on the drop of water : A small drop of water measuring 0.6 mm in diameter, how many extra electrons are on the drop of water

How much must she save each year at the end of years : How much must she save each year at the end of years 21 through 35 to obtain her goal? Assume that the average rate of return over the entire period will be 10%. Please show all work.

What is the approximatereal power at the power factor : In a certain balanced three-phase system, each line current is 5A and each line voltage is 220 V. What is the approximatereal power, if the power factor is 0.7

What is the magnitude of the external electric field : A spring with an unstrained length of 0.070 m and a spring constant of 2.4 N/m hangs vertically downward from the ceiling. What is the magnitude of the external electric field

Find the probability of the sum of the dice is even : We roll two fair six-sided dice. Find the probability ofthe following events: (a) The two dice show the same number. (b) The number that appears on the rst die is larger than the number on the second.

What is the charge on the dust particle : A small piece of dust (mass=1.8 $\mu$\ g) travels horizontally through an electric air cleaner in which the electric field is 524 N/C. What is the charge on the dust particle

User Account

All Pages