What annual contributions to the retirement fund

Assignment Help Financial Management

Reference no: EM132014494

You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $30,000 for 25 years after retirement. During the period before retirement you can earn 11 percent annually, while after retirement you can earn 13 percent on your money.

What annual contributions to the retirement fund will allow you to receive the $30,000 annuity? Use Appendix C and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM132014494

Questions Cloud

The irr rule advise regarding payment arrangement : What does the IRR rule advise regarding the payment arrangement?

What is arthur fixed costs : Arthur crafts miniature choclate dollhouses which he sells for $22 each. What is Arthur's fixed costs?

Calculate operating cash flows of the project : Calculate the operating cash flows of the project if the firm’s tax bracket is 30%.

Explain the different types of counter trade : Explain the different types of counter trade. In many cases, counter trade deals involve not just one type, but have elements of two or more

What annual contributions to the retirement fund : What annual contributions to the retirement fund will allow you to receive the $30,000 annuity?

What will be her yearly annuity : What will be her yearly annuity for the next 15 years?

What is the present value of these payments : What is the present value of these payments if the discount rate is 7 percent? What rate of return will Mr. Templeton need in order to achieve this goal?

Company break even on its investment in new manager : what month will the company break even on its investment in the new manager?

The argentine inflation rate is expected : Assume that U.S. and Argentine investors require a real return of 2 percent. the Argentine inflation rate is expected to be about ____ the U.S. inflation rate,

User Account

All Pages