How much should contribute each month

Assignment Help Financial Management

Reference no: EM131938609

Your employer offers a 401(k) plan with a 18% match, and you set a goal of retiring in 30 years with an amount of money which has the same buying power that 1.9 million dollars has today. If the account earns an annual interest rate of 1.2% and the expected annual rate of inflation is 1.6%, how much should you contribute each month to the 401(k)?

Reference no: EM131938609

Questions Cloud

What is fundamental price of the stock : What is the fundamental price of the stock? What is the stock's expected return?

Value of the option to abandon : If success and failure are equally likely, what is the NPV of the project? What is the value of the option to abandon ?

Expected default rate on particular mortgage backed security : If the expected default rate on particular mortgage backed security is 4 % per year, and the corresponding Treasury security carries 3 % annual interest rate

What should be price of portage bay? stock : If Portage? Bay's equity cost of capital is 12 % and it has 44 million shares? outstanding, what should be the price of Portage Bay? stock?

How much should contribute each month : If the account earns an annual interest rate of 1.2% and the expected annual rate of inflation is 1.6%, how much should you contribute each month to the 401(k)?

What is enterprise? value : Victoria Enterprises expects earnings before interest and taxes ?(EBIT?) next year of $ 2.5 million. what is its enterprise? value?

Target capital structure-what is the company wacc : Fresh, Inc.’s target capital structure is 60% debt and 40% common stock. What is the company’s WACC?

The firm after-tax component cost of debt : A firm has issued a bond. The firm's marginal tax rate is 40%. What's the firm's after-tax component cost of debt?

What level of incremental sales is associated : What level of incremental sales is associated with introducing the new pizza in this? case?

User Account

All Pages