How much would be shortfall or excess in retirement account

Assignment Help Financial Management
Reference no: EM132014343

1. Mike currently 35, has $15,000 saved for retirement. He is currently saving $450 at the beginning of every month and his employer matches his total savings contribution on a monthly basis. Mike projects that he could earn 7% on his savings. He plans to retire at 65 and expects to live until age 90. His current expenditure on basic needs at the beginning of every month is $2200 every month which is expected to increase with inflation of 4%. How much would be shortfall or excess in his retirement account?

$337,138 shortfall

$334,475 excess

$337,138 excess

$334,475 shortfall

please provide steps for the financial calculator.

2. What is the present value of $3,000 paid at the end of each of the next 78 years if the interest rate is 4% per year? The present value is _(round to the nearest cent).

Reference no: EM132014343

Questions Cloud

House appreciation and mortgage payments : What would the loan balance be in ten years? If the house appreciates at 2 percent per year, what will be the value of the house in ten years?
Present value and annuity payments : Present Value and Annuity Payments. How much would you have to deposit in the savings account each month to be able to pay the bill?
What return would you suffer next year for investment : What return did you earn? What return would you suffer next year for your investment to be valued at the original $3,000?
Monthly mortgage payment on your existing mortgage : What is the monthly mortgage payment on your existing mortgage? What would be the monthly mortgage payment on the new (30 year) mortgage?
How much would be shortfall or excess in retirement account : Mike currently 35, has $15,000 saved for retirement. How much would be shortfall or excess in his retirement account?
What is the estimated price per share : Moser Manufacturing just posted a free cash flow of $100 million. What is the estimated price per share?
Consider different pay for performance strategies : consider different pay for performance strategies or seniority based pay increases
Discuss sony corporate supply chain : Discuss Sony corporate supply chain based on the strengths and weeknesses.
How high of a return do you need to earn on your investments : You are trying to decide how much to save for retirement. how high of a return do you need to earn on your investments?

Reviews

Write a Review

Financial Management Questions & Answers

  Complete an amortization schedule for the bond investment

Complete an amortization schedule for the bond investment on the spreadsheet that was attached to the e-mail that I sent you.

  Change in financial position and financial decision

Change in Financial Position. What do you think happens to your budget when your financial position changes? Financial Decision. In the previous question, you decide to pay off the car loan and invest the difference. Now you no longer have a $350 per..

  What is bond yield to maturity

What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 24 years? What if it matures in 6 years?

  Produce electricity versus other more costly methods

the debate over the burning of coal to produce electricity versus other more costly methods;

  What is the best estimate of the stock current market value

Burke Tires just paid a dividend of D0 = $0.50. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the..

  Meet delilah and daniel westerfield-tax planning clients

Delilah & Daniel file joint tax returns. The table below summarizes their financial data for tax purposes.

  Ceases to withdraw funds from the account

She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account.

  Price the earlier call option with a higher volatility

Price the earlier call option with a higher volatility. - That is, price a call with a stock price of $80, a strike price of $75, 3 months to maturity, a 5% risk-free rate of return, and a standard deviation of return of 30% on the underlying stoc..

  Timing the effective date of the election revovation

Juanita is the sole shareholder of Belize Corporation (a calendar year S corporation). She is considering revoking the S election. It is February 1, year 1. What options does Juanita have for timing the effective date of the S election revovation? Wh..

  Calculate the present value of total outflows

Calculate the present value of total outflows. Calculate the present value of total inflows.

  Should you invest in given project

A project costs $19,000 and promises the following cash flows: - The appropriate discount rate is 15% per annum. Should you invest in this project?

  Profitability index compare to npv as tools for projects

How do the IRR, payback period, 5 year cumulative EBITDA, and profitability index compare to NPV as tools for evaluating projects?

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