Start saving for retirement

Assignment Help Financial Management

Reference no: EM131179591

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $68,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 10.8 percent per year. Your salary will increase at 2 percent per year throughout your career. How much money will you have on the date of your retirement 35 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131179591

Questions Cloud

Best interest of your company to accept of decline project : If the firm you work for has a WACC of 8%. You have the ability to accept or decline a project that costs $50,000 initially, producing cash flows of $10,000 a year for three years after that, and then $8,000 for five years after that. Would it be in ..

How can the american parent decrease this risk : Verizon Phone Company, an American firm, is estimating their profit in Germany for next year. They are predicting sales in Germany of 200,000 units at 89 euros per unit. Their variable costs are 35 euros per unit and their fixed costs are 6,000,000 e..

According to constant growth dividend discount model : According to constant growth dividend discount model, we compute the intrinsic value of stock at time 0 (today’s computed stock price), P0=D1/(k-g), where D1 is the expected dividend next year, and k is the required return or discount rate.

The repurchase is expected to have no effect on net income : Beta Industries has net income of $3,900,000, and it has 1,235,000 shares of common stock outstanding. The company's stock currently trades at $45 a share. Beta is considering a plan in which it will use available cash to repurchase 15% of its shares..

Start saving for retirement : Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $68,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next yea..

Purchased a new warehouse : You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35-year mortgage loan for 85 percent of the $3,500,000 purchase price. The monthly payment on this loan will be $17,600. What is the APR on this loan?

What is the equivalent uniform annual cost for system : Springfield is planning to build a new water treatment facility. The first cost of the facility will be $906711. Annual maintenance and repairs will be $16867 for each of the first 5 years, increase to $46917 for each of the next 10 years, and increa..

How do you plan to communicate with your stakeholders : How will you notify the sponsor of your serious error? Provide your response to the following questions: • Who are your stakeholders? • How do you plan to communicate with your stakeholders?

Make an initial proposal with same case studies : Choose any area from business and make an initial proposal with same case studies

User Account

All Pages