Saved at retirement to fund these planned withdrawals

Assignment Help Financial Management
Reference no: EM131455980

You are trying to calculate how much money you should have at retirement. On your 59tn birthday you will retire and immediately make your first withdrawal of $2, 884 62. You plan to make 52 such withdrawals each year. You plan to continue withdrawing at that level and frequency until you arc 71 years old. {Assume beginning of period withdrawals with the first withdrawal on your retirement date and no withdrawal on your final birthday.) During retirement your savings will cam only 4.4% per annum. How much do you have to have saved at retirement to fund these planned withdrawals? How much do you have to have saved at retirement to fund these planned withdrawals?

Reference no: EM131455980

Questions Cloud

Prepare the first row of loan amortization schedule : Prepare the first row of a loan amortization schedule based on the following information. What portion of this payment is Interest?
Using the net present value when evaluating projects : Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company’s project,
What portion or percentage are the total interest payments : What portion or percentage are the total “Interest Payments” of the initial loan value of $25,000? Set up an amortization schedule that shows annual payments.
Annual expense ratio is netted out of the funds return : Assume that the annual expense ratio is netted out of the fund's return.
Saved at retirement to fund these planned withdrawals : You are trying to calculate how much money you should have at retirement. How much do you have to have saved at retirement to fund these planned withdrawals?
With a time deposit you cannot withdraw funds : what is the dollar amount of interest that is earned from earlier interest (rather than off of the original principal)?
Determine if purchase of the van is economically feasible. : ACME is considering purchasing a new van to deliver its products. Determine if the purchase of the van is economically feasible.
Find the net present value for series of future cash flows : Find the net present value (NPV) for the following series of future cash flows, assuming the company’s cost of capital is 12.33 percent. The initial outlay is $
Birthday in order to achieve your retirement goal : How much do you have to save each year from your 51st to your 60th birthday in order to achieve your retirement goal

Reviews

Write a Review

Financial Management Questions & Answers

  What is the annual rate of return

What is the annual rate of return for $8,000 investment if in five years it grows to $12,500. Assuming the growth occurred in 6 years and then in 8 years, recalculate the rate of return for these two scenarios.

  What is the forward price

A stock is expected to pay a dividend of $1.50 per share in 2 months and 5 months. The stock price is $50, risk free rate is 8%. An investor has taken a long position in a 6 month forward contract on a stock. What is the forward price?

  Calculate the net present value and internal rate of return

Fijisawa, Inc., is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. Calculate the net present value. Calculate the profitability index. Calculate the internal rate of..

  Expansion project that initial fixed asset investment

Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.73 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,090,000 in ..

  Risk free asset and the market portfolio

Given that the risk-free rate is 5%, the expected return on the market portfolio is 20%, and the standard deviation of returns to the market portfolio is 20%, answer the following questions: a. You have $100,000 to invest. How should you allocate you..

  Higher subsequent returns

You analyzed the returns of a sample of stocks. You found that, on average, the firms with high E/P ratios have higher subsequent returns. (i) Discuss an explanation for this pattern that is consistent with the EMH. (ii) Discuss an explanation that i..

  How many different nodes and loops are there in the circuit

In given Figure determine which elements are in series, parallel, or neither.- How many different nodes and loops are there in the circuit? Then if v2 = 3 V and v3 = 5 V, find v1, v4, and v5.

  Stocks with similar riskiness have expected returns

A company just paid an annual dividend of $1.10 per share. The dividend is expected to grow by 4.0%, 4.5%, and 12.5% over the next three years, respectively. After that, the dividend is expected to increase by 2.5% annually. What is one share worth t..

  What is the incremental savings of buying the valves

Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: Cost per Unit Variable costs Direct material $900 Direct labor 600 Variable overhead 300 Fixed costs. the space o..

  Maintain constant growth rate in its dividends

Suppose you know that a company’s stock currently sells for $51 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it..

  How much of incremental value created in this transaction

How much of the incremental value created in this transaction will go to the CEO’s of the two firms involved? Are the transaction incentives for the CEOs fair for their shareholders? Other stakeholders?

  What is required rate of return on the firms levered equity

Consider a firm with a debt-equity ratio of 0.40. The required rate of return on this firm’s unlevered equity is 18% and the pre-tax cost of debt is 8%. Sales, which totalled $34 million last year, are projected to remain at that level for the forese..

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