Retirement account-make monthly contributions

Assignment Help Financial Management
Reference no: EM131547979

Although Bill has nothing saved for retirement so far, he has determined that he will need to have $986,000 in the account when he retires. He plans to open a retirement account and make monthly contributions from his paycheck. The account that earns 11.9 percent annual interest (which is compounded monthly). How much will he have to invest each month to be able to reach his goal at the end of 33 years? Show your answer as a positive number to the nearest penny.

Reference no: EM131547979

Questions Cloud

The various responses to a competitors price change : What are the various responses to a competitor's price change?
What are the two option positions required to replicate bond : What are the two option positions required to replicate this bond?
Prepare a pmp : Use the PMP template as provided. Consider this a template provided by your employer. A thorough Project Management Plan (PMP) contains many integrated.
Role of involvement in purchase decisions : Role of Involvement in purchase decisions. Student can identify the role of consumer involvement applicable to a specific product or service offering.
Retirement account-make monthly contributions : He plans to open a retirement account and make monthly contributions from his paycheck.
What does the trade-off theory-amount of debt used by firms : What does the trade-off theory suggest will happen to the amount of debt used by firms?
Should serving others be placed at a higher moral level : Should serving others be placed at a higher moral level than serving oneself?
Take advantage of continued strong population growth : Atlanta but is now considering expansion throughout the region to take advantage of continued strong population growth.
The role of the marketing management in the strategic plan : Write an acrostic about this concept: The role of the Marketing Management in the strategic planning of a business.

Reviews

Write a Review

Financial Management Questions & Answers

  Present value of single payment

What is the present value of a security that will pay $15,000 in 20 years if securities of equal risk pay 5.3% annually? Round your answer to the nearest cent.

  Equipment to produce cash flows

Kingston, Inc. management is considering purchasing a new machine at a cost of $4,129,832. They expect this equipment to produce cash flows of $821,407, $841,261, $853,835, $1,065,425, $1,134,239, and $1,296,663 over the next six years. If the approp..

  How sensitive is npv to changes in price of new smart phone

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other..

  What is the net new long-term debt

During 2014, Raines Umbrella Corp. had sales of $660,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $90,000, and $85,000, respectively. Suppose Raines Umbrella Corp. paid out $54,000 in cash div..

  Calculate annual end-of-year savings required for investment

Joshua is planning for his retirement. He is in mid-thirties, has two children, and an annual income of $120,000 before taxes. Based on the information given, calculate the annual end-of-year savings required for investment during the period until re..

  What do investors expect stock to sell for at end of year

A share of stock is now selling for $155. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of re..

  Dividend is expected to grow

Mitts Cosmetics Co.'s stock price is $55.11, and it recently paid a $2.50 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, g; and rs = 15%. At what constant rate is the stock expected to g..

  Evaluate the integrated control theory model presented by

evaluate the integrated control theory model presented by klein 1989 and its usefulness in contemporary organizations.

  Assume further that long-term annual market return

Assume that Constant-Growth DDM is appropriate valuation model for stock index. Assume further that long-term annual market return is expected to be

  What rate of return will you earn on that investment

Suppose you buy the stock today, hold it just long enough to receive the next dividend, and then sell it. What rate of return will you earn on that investment?

  What is the effective annual rate on this loan

You want to buy a new sports coupe for $83,500, and the finance office at the dealership has quoted you a 6.5 percent APR loan for 60 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?

  What is an estimate of growth company cost of equity

Growth Company's current share price is $20.30 and it is expected to pay a $1.10 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4.2% per year. What is an estimate of Growth Company's cost of equity? G..

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