Maintain the balance between income-increasing expenditures

Reference no: EM13817646

1. a. Inflation is expected to average four percent for the long term and Mr. Smith earned $50,000 this year. How much must he earn in 20 years just to keep up with inflation and maintain the balance between his income and his increasing expenditures?

b. Jamie wants to have $2,000,000 for her retirement in 25 years. How much should she save annually if she thinks she can earn 10 percent on her investments?

c. The Flemings will need $100,000 annually for 20 years during retirement. How much will they need at retirement if they can earn a four percent rate of return?

d. The Hamptons want to have $3,500,000 for their retirement in 30 years. How much should they save annually if they think they can earn eight percent on their investments?

Reference no: EM13817646

Questions Cloud

Analyze the key reasons why the entering the market : Analyze the key reasons why the entering the market in the country that you have chosen is justified. Include your research and analysis from Criteria 1 and 2 of this assignment to support the response.

Expected value-consumer choices : Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision making.

Management''s role in successful quality improvement programs : In any personal experience or a real-life story found on the Internet, discuss senior management's role in successful quality improvement programs.

Write a clear explanation of the relevant theories : Case Study: Compensation Controveries at AIG. Write a clear explanation of the relevant theories and demonstrate critial thinking skills in your own words.

Maintain the balance between income-increasing expenditures : 1. a. Inflation is expected to average four percent for the long term and Mr. Smith earned $50,000 this year. How much must he earn in 20 years just to keep up with inflation and maintain the balance between his income and his increasing expenditu..

Discuss the total quality management : Discuss the following points regarding the total quality management (TQM) concept. Using personal experience in regard to the quality improvement programs that you discussed in the previous week, which of the following specific quality program tac..

Company performance and reasons for investing : From an investor's view, review the last annual report for chosen company. Use financial analysis tools of liquidity, profitability, and solvency to evaluate the company's performance and reasons for investing or not investing. Include the company..

Write a review of the article bartleby : Write a review of the article "Bartleby". The Doloff article, the wiki, the audio/power points and the discussion posts. What do you see as the most important points about this material in the context of our class?

Flexible budget variances-appleby inc : The controller of Appleby Inc. created standards for variable costs for one of its products asfollows: per unitDirect material $2.00Direct labour 5.60Variable overhead 1.25At the beginning of the year

User Account

All Pages