How much would the forty-year-old investor have to save

Assignment Help Financial Accounting
Reference no: EM132755934

A 20-year-old student wants to save $3 a day for her retirement. Every day she places $3 in a drawer. At the end of each year, she invests the accumulated savings ($1,095) in a brokerage account with an expected annual return of 12%.

Problem (1) If she keeps saving in this manner, how much will she have accumulated at age 65?

Problem (2) If a 40-year-old investor began saving in this manner, how much would he have at age 65?

Problem (3) How much would the 40-year-old investor have to save each year to accumulate the same amount at 65 as the 20-year-old investor?

Reference no: EM132755934

Questions Cloud

What percentage of the project was completed by the end : Kris wants to know how effectively the company operated during the three (3) years on this project, What percentage of the project was completed by end of 2015
How changes in working capital can be a source of cash : Discuss the relationships among the different financial statements. What is free cash flow? how changes in working capital can be a source of Cash.
What rights does the person have : Student's should research their state's law and then describe the following topics: Living Will, DNR, Power of Attorney, Spouse/Partner Rights, Euthanasia.
Determine what logical arguments might use to convince boss : What logical arguments might you use to convince your boss to forego the project despite its high rate of return? Is it possible that making investments
How much would the forty-year-old investor have to save : How much would the 40-year-old investor have to save each year to accumulate the same amount at 65 as the 20-year-old investor?
What would the present value be if was a perpetuity : A 5-year $100 ordinary annuity has an annual interest rate of 10%. What would the present value be if it was a 25-year annuity?
What is the future value of a three-year : What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%? What would the future and present values be if it was an annuity
Describe any potential challenges or risks : Post a 1 page or 3 paragraph brief description of general healthcare technology trends, particularly related to data/information you have observed in use.
What is the return shareholders are expecting : The dividend is expected to grow at an 11.50 percent rate. The current stock price is points $55.72. What is the return shareholders are expecting

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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