User Account

All Pages

How much should you set aside per year to meet goal

Assignment Help Finance Basics
Reference no: EM131975523

You just celebrated your 35th birthday. You plan to retire at 65 and live to be 95. You want to receive $60,000 per year in your retirement years.

You have a current balance of $53,000 in your 401(k). If you think your portfolio will make a return of 5% on average, how much should you set aside per year to meet your goal?

  1. $13,880
  2. $11,613
  3. $12,217
  4. $10,435
  5. $13,887

Reference no: EM131975523

Questions Cloud

What is the net present value of the project : If the project's cost of capital is 12 per cent, what is the present value of the project's expected cash flow stream?
What is the annualized cost of debt : A firm just paid a $2.50 dividend. Its dividends are expected to grow at a constant rate of 5.50% per year, and the common stock currently sells for $52.50.
Record the journal entries for the retirement of the bonds : The bonds have a current book value of $1,076,000. Record the journal entries for the retirement of the bonds, using a discount account.
What is the expected growth rate of the company dividend : A firm just paid an annual dividend of RM0.50 and it is expected to grow at a constant rate forever.The price of the company's common stock is currently.
How much should you set aside per year to meet goal : If you think your portfolio will make a return of 5% on average, how much should you set aside per year to meet your goal?
How much debt can the firm issue in the coming year : If the firm wants to maintain its same debt-to-equity ratio, how much debt can the firm issue in the coming year IF the firm will not issue any new shares?
What is firm approximate weighted average cost of capital : A firm is partly debt financed with 4 year bonds that all pay a 7% annual coupon. The total book value of the debt is $5 million with $1,000 par value per bond.
What should be the new carrying value of the equipment : The service units approach is most appropriate for impairments caused by technological obsolescence. What should be the new carrying value of the equipment?
What is the npv of the project if the discount rate : After year 3, the cash flows will increase by 2% per year forever. What is the NPV of the project if the discount rate is 14%?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the risk premium on a stock with a beta

The Elvis Alive Corporation, makers of Elvis memorabilia, has a beta of 2.35. The return on the market portfolio is 13%, and the risk-free rate is 7%. According to CAPM, what is the risk premium on a stock with a beta of 1.0?

  Find the irr of the project

Find the payback period of a project that costs $2000 and generates $500 in the 1st year, $700 in the 2nd year, $800 in the 3rd year, $600 in the 4th year.

  Willing to pay for marks stock today

Marks, Inc., expect a dividend of $5.20 per share in one year from now. The rate of return is 13% and the growth rate is 6.8%.

  Do a sensitivity analysis that shows the effects

Rework Problem 15-10 using a spreadsheet model. After completing Parts a through d, respond to the following: If Bowers' customers began to pay late, collections would slow down, thus increasing the required loan amount. If sales declined, this also ..

  Calculate the company debt-to-equity ratio

Boulder Mountain Ski Company has total assets of $424,400,000 and a debt ratio of 0.25. Calculate the company's debt-to-equity ratio.

  What are the subsidiary processes of each major process

What data stores are owned by other information processes that provide data to the M/S process? What data does the M/S process obtain from these stores?

  Compute the break-even point in units

1. Airy Window Units sells air conditioners for $125 per unit, and the variable cost to produce them is $87. The owner estimates that the fixed costs are $4,186,000.

  Why are the valuations different

What should be the prices of the following preferred stock if comparable securities yield 7 percent? Why are the valuations different?

  Project manager for abc company

As a are a project manager for ABC Company. The company wants to purchase new equipment, train employees on the equipment

  Accounting is often described as the language business to

accounting is often described as the language business. to what extent do managers need to have experience in

  What is the yield to maturity

ABC Company has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in 7 years, and have a 8 percent coupon.The current price of the bond is $900. What is the yield to maturity?

  Articles on behavioral finance

There are many articles on "behavioral finance," how do the time value of money rules fare under this concept?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd