How much would be available to live on each quarter

Assignment Help Financial Accounting
Reference no: EM132998081

Ishan and Hazel plan to retire at age 60 with a retirement income of $48,000 a year from their savings. Rather than pay themselves the whole amount at the beginning of each year, they have decided that payment at the beginning of each quarter of $12,000 gives them the right balance of flexibility and maximized interest earnings. They feel they can safely earn an interest rate of 8%, compounded quarterly, on their money and they are budgeting based on the prediction that they will live until they are 90 years old.

Question 1: How much money will they have to have saved by the time they are 60 in order to fulfill this plan?

Question 2: If the same total calculated above was to be saved, but no interest earned whatsoever, how much would be available to live on each quarter?

Question 3: If the full 30 years are lived and quarterly budget spent, how much money in total will have been utilized in retirement?

Question 4: How much will have been earned in interest?

Reference no: EM132998081

Questions Cloud

Explain difference between unique and non-systematic risk : Explain the difference between Simple Interest and compound Interest. Explain the difference between Unique and Non-systematic risk
How much would the deposit have to be each month : If they assume the same interest rate, and make deposits into their savings at the beginning of every month, how much would their deposit have
What is the rate of return on your savings : Today completes your 17th year of saving and you now have $6,528.91 in this account. What is the rate of return on your savings
Explain corporate social responsibility : What a some ways that businesses can monitor their actions and impacts to ensure they uphold their corporate social responsibility?
How much would be available to live on each quarter : If the same total calculated above was to be saved, but no interest earned whatsoever, how much would be available to live on each quarter?
Determine the double-declining-balance rate : Double-Declining-Balance Depreciation A building acquired at the beginning of the year. Determine the double-declining-balance rate
Identify three warning signs : Identify three warning signs from the list below that would need to be displayed in an early childhood service?
Prepare journal entries to record the income tax : Question - In 2020, argentina company received an advance payment of P1,000,000, Prepare journal entries to record the income tax
How much interest will be earned : How much interest will be earned? How much will they have saved by their child's 18th birthday now that they have increased their payments?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the difference

the relative price of chicken has increased, so Brain would be expected to purchase less both are true, what is the difference?

  Calculate cash flow from operating activities

Calculate Cash Flow from operating activities. Calculate Cash Flow from Investing activities. Calculate Cash Flow from financing activities.

  Find what is the intrinsic value of all options at maturity

If the company announces a 3 for 1 stock split and the final stock price at maturity ends up being 3.6. What is the intrinsic value of all options at maturity

  Find the number of common shares outstanding at December

Treasury Stock, Common, 5,000 shares $200,000 and Retained Earnings $300,000. Find the number of common shares outstanding at December

  Evaluate relevant range of activity

Evaluate relevant range of activity for this product and the relevant range of activity for this product ___?????___________ units

  Record the adjusting entries as of transactions

Record the adjusting entries as of 12/31 for the following transactions. Assume the original transactions were journalized correctly

  Prepare journal entry allie will record for bond interest

Compute and specify the consolidated gain or loss on a consolidated income statement for at the end of 2020,Prepare consolidation entry B on 12/31/2020

  Determine for March the equivalent units of production

Baltimore uses the weighted-average method. Use this information to determine for March 2019 the equivalent units of production for conversion costs

  What effect on the accounting equation

Which financial statement reports information helpful in assessing working capital and the purchase of office equipment of credit has what effect on the accounting equation?

  What is the deferred tax expense for canterbury company

What is the deferred tax expense for 2017? The pretax accounting income for 2017 is 6,000,000 and the tax rate is 30%. There are no deferred taxes at beginng.

  Take close look at the specific parts of critical thinking

Take a close look at the specific parts of critical thinking. When have you used these skills? Think about writing assignments, class discussions, presentations, and other past coursework you have completed. Identify one assignment you have completed..

  Explain recommended reporting structure for internal audit

Internal auditors are employees of the organization, however, internal auditing standards them to maintain independence.

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