User Account

All Pages

How much would Austin need to have on deposit

Assignment Help Accounting Basics
Reference no: EM132695762

Problem - Funding a retirement goal - Austin Miller wishes to have $800,000 in a retirement fund 20 years from now. He can create the retirement fund by making a single lump-sum deposit today.

a. If upon retirement in 20 years, Austin plans to invest $800,000 in a fund that earns 4 percent, what is the maximum annual withdrawal he can make over the following 15 years?

b. How much would Austin need to have on deposit at retirement in order to withdraw $35,000 annually over the 15 years if the retirement fund earns 4 percent?

c. To achieve his annual withdrawal goal of $35,000 calculated in part b, how much more than the amount calculated in part a must Austin deposit today in an investment earning 4 percent annual interest?

Reference no: EM132695762

Questions Cloud

Estimate the unrealized gain or loss on the investment : On January 2, 2019, Estimate the unrealized gain or loss on the investment that should be reported at year end by All Good Company.
Problem - Inflation and Interest Rates : Problem - Inflation and Interest Rates - Explain the effect of long-term inflation on meeting retirement financial planning goals
Find and determine the book value of the investment : Find and determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole dollar.
How is the write-up of qualitative studies the same : How is the write-up of qualitative studies the same or different from the write-up of quantitative studies with respect to the data collection and data.
How much would Austin need to have on deposit : How much would Austin need to have on deposit at retirement in order to withdraw $35,000 annually over the 15 years if the retirement fund earns 4 percent
Organization evaluating training program : Discuss the importance of an organization evaluating their training program. Should evaluation be a continuous process? Why or why not?
Estimate how much interest expense will be paid on august : The interest rate is 7.0% per year. How much interest expense will be paid on August 31, 2018? (Round your answer to the nearest whole dollar.)
Threat of deadly new strain of influenza indicates : Imagine that you are a public health nurse, and you and your colleagues have determined that the threat of a deadly new strain of influenza indicates
Problem - Calculating Present and Future Values : Problem - Calculating Present and Future Values - If the average new home costs $275,000 today, how much will it cost in 10 years

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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