How much will jane have in her retirement account

Assignment Help Finance Basics
Reference no: EM13478697

Jane Stevens is 30 years old, and she is reviewing her retirement plans. She currently has $20,000 in a retirement account.Jane plans to invest another $5,000 in the account today (Year 0), and then increase this amount by 4% per year over the next 40 years (Years 1 through 40). However, she has a 3-year old son, who will attend college in 15 years.Jane will suspend her contributions for four years while her son is in college, i.e., she will not make any contributions in Years 15, 16, 17, and 18.Her contribution in Year 19 will be 4% higher than the one in Year 14.

(a) How much will Jane have in her retirement account immediately after she makes her last contribution in Year 40, assuming a return on her investments of 9%?

(b) Jane wants to withdraw a constant amount each year from her account over a 20-year period.Her first withdrawal will occur at age 71 (Year 41), and the last at age 90.How much will Jane be able to withdraw each year, assuming a return on her investments of 5% during her retirement years?

Reference no: EM13478697

Questions Cloud

Kingsley products ltd is using a model 400 shaping machine : kingsley products ltd. is using a model 400 shaping machine to make one of its products. the company is expectingnbsp
The draft report will be graded based on completeness : draft your financial analysis report of apple inc including the following six sectionsexecutive summarycompanyindustry
Discuss at least two information sharing models that have : many press reports and to some extent the 911 commission report referred to the failure to share information as one
Find annual interest rate n 30 years quarterly payments : find annual interest raten 30 years quarterly paymentsinterest rate compounded quarterlypv 1200000pmt -90000fv
How much will jane have in her retirement account : jane stevens is 30 years old and she is reviewing her retirement plans. she currently has 20000 in a retirement
Your essay will explore the effect of an introducedexotic : write an essay on your chosen topic. the essay should be no more than 1000 words and must be original.essay topicsbull
Describe how the companys strategy for financing as a : genesis newly established operations management team decided to seek outside assistance in developing a long-term
Escribe and evaluate a companys pricing and retail strategy : describe and evaluate a companys pricing and retail strategy. include analysis of the current market situation and the
Calculate the following financial ratios for cando inc in : the following table presents the data for cando inc. in as of december 31 2008accounts payable104000accounts

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the required reserves ratio

If the Friendly National Bank experiences a required reserves deficit, what actions can it take to be in compliance with the existing required reserves ratio?

  Calculate the sharpe ratio

Calculate the Sharpe ratio, Treynor ratio, Jensen's alpha, information ratio, and R-squared for both funds and determine which is the best choice for your portfolio.

  Supply chain management is the integration of activities

supply chain management is the integration of activities that procure materials and services transform them into

  Prepare journal entries to record transactions

Make journal entries to record the following transactions relating to long-term bonds of XYZ, corporation and Show all calculations.

  Find what is the expected capital gains yield

For the coming year, what is the expected capital gains yield? Round your answer to two decimal places.

  Beta industries has net income of 3800000 and it has 870000

beta industries has net income of 3800000 and it has 870000 shares of common stock outstanding. the companys stock

  Select the higher npv project

A construction company is evaluating two value-adding projects. The first project deals with building access roads to a new terminal at the local airport. The second project is to build a parking garage on a piece of land that the company owns..

  Future value for different compounding frequencies

Find the amount to which $500 invested today will grow to in five years under each of the following conditions:

  Solve using the straight line methodthe following

solve using the straight line methodthe following transactions were completed by simmons inc. whose fiscal year is the

  In view of jennifers long-term investment goals do you

jennifer ponders mutual fundsjennifer hollins is the director of a major charitable organization in lexington kentucky.

  How many shares need to be sold

The offer price is $45 per share and the company's underwriters charge a spread of 7 percent. The SEC filing fee and associated administrative expenses of the offering are $550,000. (Enter your answer as directed, but do not round intermediate cal..

  Write a paper of no more than 700 words discussing the four

write a paper of no more than 700 words discussing the four different types of financial statements. explain the

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!

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