User Account

All Pages

What amount must you deposit annually

Assignment Help Accounting Basics
Reference no: EM132923996

Question - You are a citizen of a country that has a retirement age of 55 years. You will be celebrating your 25th birthday at the end of March 2021. You want to start saving for your retirement at age 55. You have determined that you would like to withdraw $125,000 from your savings account on each birthday up to age 76. The first withdrawal will take place on your 56th birthday. You intend to invest the money at the Bank of Guyana which offers high investment rates of 7% per year. You want equal annual payments on each birthday into the account established at the Bank for your retirement fund.

1. If you start making deposits on your 26th birthday and continue to make deposits until you are 55 (the last deposit will be on your 55th birthday), what amount must you deposit annually to be able to make the desired withdrawals at retirement?

2. Suppose you just received a large insurance settlement. Rather than making equal annual payments to your retirement fund, you decide to make one lump-sum payment on your 25th birthday to cover your retirement needs. What amount do you have to deposit?

3. Suppose your employer, Toyota Guyana Ltd. will contribute $3,500 to the account every year as part of the company's profit-sharing plan. In addition, you expect a $175,000 distribution from a family trust fund on your 45th birthday which you will also put into the retirement account. What amount must you deposit annually now to be able to make the desired withdrawals at retirement?

Reference no: EM132923996

Questions Cloud

Which product makes the least profitable use : A total of 22,600 minutes are available per month on these machines. Which product makes the LEAST profitable use of the milling machines
Complete the consolidation working papers for the year : Puddle Corporation acquired all the voting stock of Soggi Company for $500,000 on January 1, 2014. Complete the consolidation working papers for the year
Explain what is sustainability reporting : Explain what is 'sustainability reporting'. Explain how the fundamental, stewardship and ethical attributes (or role) of an accountant can be satisfied
What the Lynch deferred income tax expense or benefit : At the beginning of the year, Congress reduced the corporate tax rate to 21%. What the Lynch's deferred income tax expense or benefit for the current year
What amount must you deposit annually : What amount must you deposit annually now to be able to make the desired withdrawals at retirement
List the most appropriate sources of finance : List the most appropriate sources of finance for THIS business in the start-up phase. Briefly explain why these are the most appropriate
Calculate the amount of cash collections you will collect : Calculate the amount of cash collections you will collect in November if you estimate you will collect 60% of your sales in the month of the sale
Discuss role of Strategic Management accountant : Using the definition of Strategic Management accounting discuss the role and responsibilities of Strategic Management accountant in recent times
What will the book value of this purchase : The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd