Stephen bosworth a super salesman contemplating retirement

Reference no: EM13451875

Stephen Bosworth, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $25,000 per year on June 30, beginning in 2014 and continuing through 2017. To develop this fund, Stephen intends to make equal contributions on June 30 of each of the years 2010-2013.

Instructions

(a) How much must the balance of the fund equal on June 30, 2013, in order for Stephen Bosworth to satisfy his objective?

(b) What is each of Stephen's contributions to the fund?

Reference no: EM13451875

Questions Cloud

Describe how short-run phillips curve the long-run phillips : explain how the short-run phillips curve the long-run phillips curve the short-run aggregate supply curve the long-run

Describe how the active policy varies from the passive : explain how an active policy differs from a passive policy. how does monetary policy affect aggregate demand in the

Orien inc has the following data rrf 400 rpm 600 and b : obrien inc. has the following data rrf 4.00 rpm 6.00 and b 1.10. what is the firms cost of equity from retained

Mark yoders wishes to become a millionaire his money market : consider the following independent situations.a mark yoders wishes to become a millionaire. his money market fund has a

Stephen bosworth a super salesman contemplating retirement : stephen bosworth a super salesman contemplating retirement on his fifty-fifth birthday decides to create a fund on an 8

Describe why fed can attempt to target either changes in : what is meant by the demand for money? which way does the demand curve for money slope? why? explain why the fed can

As the money manager of boston bank you have 1000000 : 1.as the money manager of boston bank you have 1000000 available for six months. you have the opportunity to lend the

Presented below are three unrelated situations ron stein : presented below are three unrelated situations.a ron stein company recently signed a lease for a new office building

Using the appropriate interest table calculate the present : using the appropriate interest table compute the present values of the following periodic amounts due at the end of the

User Account

All Pages