Plan to start saving for retire

Assignment Help Financial Management

Reference no: EM131064678

You plan to start saving so you can retire in 40 years. After retirement, you expect to live 20 years. You wish to be able to withdraw $50,000 per year at the end of every year for the 20 years during your retirement. What is the dollar amount you need to invest at the end of each year for the next 40 years to be able to accomplish this plan if the interest rate is 5 percent?

Reference no: EM131064678

Questions Cloud

What are the economic implications of this action : What are the economic implications of this action in the labor markets? Use graphs as needed and explain your answers thoroughly.

What is the annual loan payment : Jackson Electric Company has borrowed $27,850 from its bank at an annual rate of 8.5 percent. The company plans to repay the loan in eight equal installments. What is the annual loan payment?

Capitalist holding major stake in an e-commerce : Suppose you are a British venture capitalist holding a major stake in an e-commerce start-up in Silicon Valley. As a British resident, you are concerned with the pound value of your U.S. equity position. You assess that a boom and a recession are equ..

New supermarkets is major capital budgeting project : Opening a series of new supermarkets is a major capital budgeting project for the company. Describe and discuss the main items on the income statement and balance sheet that you think will be impacted by this new undertaking. Explain why you chose th..

Plan to start saving for retire : You plan to start saving so you can retire in 40 years. After retirement, you expect to live 20 years. You wish to be able to withdraw $50,000 per year at the end of every year for the 20 years during your retirement. What is the dollar amount you ne..

What will be the value of the bond when until maturity : You own a 5-year bond with a face value of $1,000 and a coupon rate of 10 percent with annual payments. The bond is currently worth $1,216.47. If market interest rates remain unchanged, what will be the value of the bond when there are only 3 years l..

Widely known stock market index : Which of the following is not a widely known stock market index?

The expected growth rate on dividends : Shylock Corporation JUST PAID a dividend of $9.52. The expected growth rate on dividends is 5 percent. What is the current price of this stock if the required rate of return is 15 percent?

Intrinsic value of deployment specialists stock : Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 4% thereafter. If the required return for Deployment Specialists is 8.5%, what is the intrinsic value of Deployment Specialists sto..

User Account

All Pages