Label the steps and important values as you solve problem

Assignment Help Financial Management

Reference no: EM132059825

You are working for a finance firm and a client comes to you and wants to know how much money they should put in an annuity (which earns 2.712% interest compounded quarterly) at the end of each three months for the next 42 years.

Their goal is that when they retire at the end of 42 years, they would like the quarterly withdrawals from the annuity to total $48,000 per year and that the annuity is to last for the next 24 years.

You are to determine the amount which your client needs to deposit into the annuity at the end of each three months for the next 42 years so that they can meet their retirement goal. Do the following:

A. Show all your work that you used to answer this problem. Label the steps and important values as you solve the problem. Note that when you use the TVM Solver, show the all variables and the values you entered (into the variables) and solved for.

B. Find the total amount of interest client will earn (from the time they start contributing to the account to when they make the last withdrawal). Show how you arrived at the answer.

Reference no: EM132059825

Questions Cloud

At what rate is her shadow lengthening : At what rate is the tip of her shadow moving? At what rate is her shadow lengthening?

Draw the probability distribution of its returns : Assuming returns of the stock follow a normal distribution, draw the probability distribution of its returns. Explain the graph.

Largest rectangle with one corner at the origin : Find the area of the largest rectangle with one corner at the origin, the opposite corner in the first quadrant on the graph of the parabola

Find the resultant vector representing the path : Q1a. Find the resultant vector representing the path of the ship relative to the shore.

Label the steps and important values as you solve problem : Label the steps and important values as you solve the problem. Note that when you use the TVM Solver, show the all variables.

Prepare the depreciation table for XYZ truck : Prepare the depreciation table for XYZ's truck, assuming that the company uses the double-declining-balance depreciation method

Calculate the npv of these two projects : You're asked to analyze whether to go forward with two mutually exclusive projects. The cash flows of both projects are displayed below.

Compute the net present value : Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for $1.3 million.

Prepare the depreciation table for floppy trucking : Prepare the depreciation table for Floppy's trucking assuming that the company uses the double-declining-balance depreciation method

User Account

All Pages