Planning on retirement at age

Assignment Help Finance Basics
Reference no: EM131891052

Assume that you are 30 years old? today, and that you are planning on retirement at age 65. Your current salary is? $45,000 and you expect your salary to increase at a rate of? 5% per year as long as you work. To save for your? retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be? 8% of this? year's salary. ? Likewise, you expect to deposit? 8% of your salary each year until you reach age 65. Assume that the rate of interest is? 7%.

The present value? (at age? 30) of your retirement savings is closest? to:

A. ?$87,000

B.? $46,600

C. ?$108,000

D. ?$75,230

Reference no: EM131891052

Questions Cloud

Determine the labor rate variance : Harmelon manufactures specialty electronic circuitry through a photoelectronic process. Determine the labor rate variance
Percentage-of-completion method of accounting : Windsor Construction Company uses the percentage-of-completion method of accounting. In 2016, Windsor began work on a contract
What maturity level did klm appear : What might explain an item that is seemingly quite unrelated to IT (costs per kilometer flown) decreased as a result of the new CIO structure?
Prepare a list of questions to conduct the interview : Read the complete description for the Final Paper in the Final Paper link. This paper will require you to select an interview subject.
Planning on retirement at age : Assume that you are 30 years old? today, and that you are planning on retirement at age 65. Your current salary is? $45,000 and you expect
Which project would be selected : Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected. Show your work
What would be the present value : What would be the present value if the money is compounded monthly?
Write a program that will read a series of lines : Write a program that will read a series of lines from an input file named hw8in.txt. Design your own input file (Hw8in.txt) and include as many variations.
What is sylvester amti : Sylvester files as a single taxpayer during 2017 and claims one personal exemption. What is Sylvester's AMTI if he used the home-equity proceeds to purchase car

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the total taxes resulting from the transaction

For each of the following cases, determine the total taxes resulting from the transaction. Assume a 40% tax rate. The asset was purchased 2 years ago for $200,000 and is being depreciated under MACRS using a 5-year recovery period. The asset is sold ..

  Create a brownian motion process for stock returns

1. The inputs are the annualized m, s, and S0 that must be calibrated to an index (say, SX5E). Because of the choice of discretization in (4.71), one should use simple historical returns (as opposed to log),

  By how many days would the cash conversion cycle be lowered

Zervos Inc. had the following data for 2008 (in millions). The new CFO believes (a) that an improved inventory management system could lower the average inventory by $4,000, (b) that improvements in the credit department could reduce receivables b..

  Discussion-corporate culture-strategy and leadership

Your local small business association is organizing a workshop centered upon the impact of corporate culture on leadership and corporate strategy.

  Over what range of discount rates would choose project a

Over what range of discount rates would you choose Project A? Project B? At what discount rate would you be indifferent between these two projects? Explain.

  How much revenue would it have brought to baldwin corp

Baldwin corp ended the year carrying $16,192,000 worth of inventory. Had they sold their entire inventory at their current prices, how much revenue would it have brought to baldwin corp?

  Describes the role the pbgc in the administration

Write a 350 word paper that describes the role the PBGC in the administration of private employer retirement plans. What rules do they impose on employers

  What range of share prices for kcp is consistent with these

Suppose you believe KCP’s weighted average cost of capital is between 10% and 12%. What range of share prices for KCP is consistent with these forecasts (keeping KCP’s initial revenue growth and EBIT margin at 9%)?

  How much insurance should alice have

Alice is 40 years old and earns $35,000 annually. The multiple earnings approach to determine the amount of life insurance needed shows that she should have 6.5 times her earnings. How much insurance should Alice have? (Show all work.)

  Decide between two different conveyor belt systems

Lang Industrial Systems company is trying to decide between two different conveyor belt systems.

  Which of the five competitive forces seem strongest

Please discuss competition in one of the segments of the consumer electronics industry in which Apple competes. Which of the five competitive forces seem strongest? Weakest? What is your assessment of overall industry attractiveness?

  What other factors may influence the value of a bond

What other factors may influence the value of a bond?

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