User Account

All Pages

Money in monthly installments

Assignment Help Finance Basics
Reference no: EM131732904

This question is about math of finance.

Please show steps

Savings Plan:

a. Suppose you start a retirement savings plan when you're 28 and want to retire with $2,500,000 35 years later. If you invest in an account paying 4.5% compounded monthly, and you make monthly payments, how much money will you need to put away every month in order to retire with $2,500,000?

b. What is the total amount of money that you invest in this account over the 35 years?

c. Suppose that instead of putting away the money in monthly installments you invest one lump sum at the start and let it accumulate interest for 35 years in this account. How much money would you need in this lump sum in order to have $2,500,000 after 35 years?

d. Suppose that you decided to invest into an account paying 4.85 % compounded quarterly for 25 years and allow the money stay in the account for another 10 years. How much money will you need to put away every quarter in order to retire with $2,500,00

Reference no: EM131732904

Questions Cloud

Describe use of the capital asset pricing model : Business and Financial Risk. Assume a firm's debt is risk-free, so that the cost of debt equals the risk-free rate, Rf .
Developing investment strategy : Describe what portolio theory is, and why it might be helpful in developing your investment strategy.
Product life cycle influence marketing communications mix : Explain how the stages in a product's life cycle influence the marketing communications mix.
Why cash is so important in running a business : One worked for this company that had a cash flow update daily. Point is, explain why cash is so important in running a business
Money in monthly installments : Suppose that instead of putting away the money in monthly installments you invest one lump sum at the start and let it accumulate interest
How does amgen compare to the industry : Capital Structure. Go to www.reuters.com and enter the ticker symbol AMGN for Amgen, a biotechnology company. Find the long-term debt-to-equity.
Identify three short-term and three long-term goals : Developing professional goals is critical to guiding your career and transitioning to become a practicing NP.
Define drug therapies for treating depression : What is the advantage of a combination drug over other drug therapies for treating depression
Calculate the manufacturing cost per equivalent unit : Old Victrola, Inc., produces top-quality stereos and uses process costing. For each of the two months, calculate the equivalent units of production

Reviews

Write a Review

Finance Basics Questions & Answers

  Operating a consulting service

Purpose of the discussion question is to allow you as the student/learner to demonstrate your understanding of the chapter's key learning points

  Calculate the value of the stock today calculate circp1 and

snyder computer chips inc. is experiencing a period of rapid growth. earnings and dividends are expected to grow at a

  Calculation of beta and weighted average cost of capital

Calculation of beta and weighted average cost of capital and How asset betas should be used? What is the corresponding Cost of Capital

  Provide one example of the effect that supports your claim

From the e-Activity, determine whether stock prices are affected more by long-term or short-term performance. Provide one example of the effect that supports your claim.

  Calculate the default risk premium

The maturity risk premium is 0.10 percent on 4-year securities and increases by 0.03 percent for each additional year to maturity. Calculate the default risk premium on Nikki G's 10-year bonds.

  Calculating cost of preferred stock

Calculating Cost of Preferred Stock. Sixth Fourth Bank has an issue of preferred stock with a $6.25 stated dividend that just sold for $108 per share. What is the bank's cost of preferred stock

  Explain why financial statements are important to the

explain why financial statements are important to the decision-making process in financial analysis. also identify and

  Receivables are currently 15m on credit sales of 120m

a firm is planning to lower its acp by ten days next year. receivables are currently 15m on credit sales of 120m

  Complete the given chart comparing the effects of stock

The Athletic Village has done very well the past year, and its stock price is now trading at $82 per share. Management is considering either a 100% stock.

  Give examples of required rates of return that would make

assume a 5-year treasury bond has a coupon rate of 4.5. a. give examples of required rates of return that would make

  Explain a credit default swap

Explain a credit default swap, an interest rate swap, or a currency swap. Give an example of when your choice could be used to mitigate risk. Provide an Internet reference other than Wikipedia, Investopedia, and similar sites.

  Find the best mix of projects to maximize profit

he Kelmer Performing Arts Center offers a series of four programs that includes jazz, bluegrass, folk, classical, and comedy. The Program Coordinator needs to determine which acts to choose for next year's series.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd