How much will you have when you retire

Assignment Help Finance Basics
Reference no: EM132174299

Question - You are graduating from college at the end of this semester and have decided to invest $5,000 at the end of each year into a Roth IRA, which is a retirement investment account that grows tax free and is not taxed when it is liqudated, for the next 45 years. If you earn 8 percent compounded annually on your investment of $5,000 at the end of each year, how much will you have when you retire in 45 years? How much will you have if you wait 10 years before beginning to save and only make 35 payments into your retirement account?

Reference no: EM132174299

Questions Cloud

What is your chosen it security approach : What is your chosen IT security approach and how would your IT security system help protect your grandfather's coffee shop and its customers?
Product family and master production schedule : Explain the difference between the product family and the master production schedule.
How long will it take him to pay off his credit card : If Chris makes monthly payments of $200 at the end of each month, how long will it take him to pay off his credit card (round up)
Describe what startup funds and working capital are : Describe what startup funds and working capital are. Propose a method for obtaining the necessary funds for your business.
How much will you have when you retire : If you earn 8 percent compounded annually on your investment of $5,000 at the end of each year, how much will you have when you retire in 45 years
Which of the current or emerging trends do you see : Which of the current or emerging trends do you see as most likely to positively impact your specific role and sector in allied health?
How does pepsico link rewards and incentives : How does PepsiCo link rewards and incentives to strategically-important employee behaviors and the company's targeted sustainability outcomes?
Describe how written communication methods : Describe how written communication methods/techniques can be used for communicating information and ideas to a range of stakeholders
Large integrated healthcare delivery systems : Kanak Gautam addresses the challenges of managing the HR process within large integrated healthcare delivery systems.

Reviews

Write a Review

Finance Basics Questions & Answers

  What subsequently happened to the prices

Groupon (GRPN) wen public a $20 a share and closed the first day at $26.11. Zynga (ZNGA) went public at $10 a share but closed the first day at $9.50. Facebook (FB) trading below $28 within two weeks for a 26.3 percent decline from the IPO offer pric..

  Expected return on the market portfolio

Using he capital asset pricing model, the expected return on the market portfolio is 12 percent and the risk-free rate is 3 percent.

  . what is the weight of the preferred stock to firm''s weight

Jack's Construction Co. has 100,000 bonds outstanding that are selling at par value. The bonds yield 9.5 percent. The company also has 4.0 million shares of common stock outstanding. The stock has a beta of 1.2 and sells for $55 a share. The U.S. Tre..

  What is your approximate volatility of return

Volatility of Return Back to QCOM. Recall that you expect a 15% return for the shares in a normal environment. However, you feel a boom or bust is equally.

  Compute the order quantity for an item

Assume that you used the EOQ model to compute the order quantity for an item, and the answer was twenty units.

  Owners of lux company make additional cash investment

1. Lux wrote off $5,000 of accounts receivable as uncollectible. 2. A bank notifies Lux that a customer's check for $411 is returned marked insufficient funds. The customer is bankrupt. 3. The owners of Lux Company make additional cash investment of ..

  What happened to the price of your bond

Right away, market interest rates jumped, and the YTM on your bond rose to 6 percent. What happened to the price of your bond?

  What is the net present value for the project

Bring It On Home, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3.53 million.

  Reliability of a firm beta

How to Identify and analyse the factors that can affect the reliability of a firm's beta. How the recent global financial crisis has had an impact on a firm's.

  Net income will result during a time period when assets

net income will result during a time period whena assets exceed liabilities.b assets exceed revenues.c expenses exceed

  What is the dollar amount of income

If London needs to have a total return of 0.24 during the year, then what is the dollar amount of income that she needed to have to reach her objective?

  What is the one-year interest rate expected on t-bills

If the unbiased expectations theory of the term structure of interest rates is correct, what is the one-year interest rate expected on T-bills during year.

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