What is required annual contribution

Assignment Help Financial Accounting
Reference no: EM132777145

You plan to retire in 36 years and would like to have saved $1,000,000 in your tax-deferred retirement account. Currently, your balance in your account is zero. As a first pass analysis, assume that you make an annual contribution at the end of each year, starting with the current year. Also, assume that the dollar amount of each contribution is the same. Your investment options are such that you forecast a rate of return of 6% per year over the period of time until you retire.

Problem 1: What is your required annual contribution (before taxes), based on these forecasts?

Reference no: EM132777145

Questions Cloud

How many moles of o2 are needed to react : Using the balanced equation for the combustion of acetylene - How many moles of O2 are needed to react completely with 5.00 mol of C2H2?
What is the future value of bank account : Suppose that you deposit $100 in a savings account at West, What is the future value of your bank account, i.e., its balance at the end of the holding period?
What is the forecast value of account at the end of period : What is the forecast value of your account at the end of your holding period? Suppose that you deposit $1,851 in a savings account at First Federal Savings
Identify organizational risks with lowering the wages : Identify 2 organizational risks with lowering the wages. Recommend a course of action (lower the wages or adopt an option to avoid lowering the wages).
What is required annual contribution : What is required annual contribution (before taxes), based on these forecasts? You plan to retire in 36 years and would like to have saved $1,000,000 in tax
Explain the importance of line managers : Explain in detail the importance of line managers role in performance management. Support your answer with the use of appropriate examples.
What amount should r report as recorded lease liability : The rounded present value of an ordinary annuity for nine years at 9% is 6.0. What amount should R report as recorded lease liability on December 31, 2018?
Describe ways technology used to enhance selection process : Identify and describe ways technology can be used to enhance the selection process. What are the possible problems that can occur because of the use.
What was bala industries cash flow from financing : What was Bala Industries' Cash Flow from Financing for the year ending 6/30/2011? Purchased property & equipment $25. Depreciation & amortization $115

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the firm after-tax cost of new debt

Based on the five-year track record, what is Chen's EPS growth rate? What will the dividend be in 2017? What is the firm after-tax cost of new debt?

  What is the difference in the present value

What is the difference in the present value if you receive these payments at the beginning of each yearrather than at the end of each year?

  Find how much is the additional premium

Find how much is the additional premium that XYZ, Inc. shareholders require to be compensated for financial risk? Show your work.

  What nominal and effective rates

Anita Moola borrows $5000 from the Shark Loan Company to pay her college expenses for the semester. She must repay the loan in six $1000 end–of-month payments over the next ½ year. Determine the interest rate that she is being charged per month (to t..

  Calculate annual depreciation charge for each of six year

Calculate the annual depreciation charge for each of the six years of the truck's life using the declining-balance method and sum-of-digits method

  Using the term break-even analysis

Perform an Internet search using the term break-even analysis. Select and read a case study or article from the results of your search. (Make sure that you do not select an instructor's lecture notes or a class assignment from the results of your sea..

  What is the accrual profit for the year ended june

What is the accrual profit for the year ended 30 June 2020? During the year ended 30 June 2020, a company makes cash sales of $25,000

  Assume the probability see-at-night soccer balls

Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a hit, the firm expects to be able to sell 55,000 units a year at a price of $60 each. If the new product is a bust, only 35,000 units can be sold at a pr..

  Investment in siegel using the simple equity method

On January1, 2008, Pope Company acquired 100% of the common stock of Siegel Company for $300,000. On this date Siegel had total owner's equity of $250,000. Any excess of cost over book value is attributable to goodwill. Pope accounts for its investme..

  Prepare the journal entry to record paynes income taxes

At the end of 2012, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book-tax difference of $75 million in a liability for estimated expenses. Prepare the journal entry to record Payne's inco..

  Prepare the necessary journal entry to record the bad debt

Tosh and Sons Inc. uses the percentage of receivables approach. Prepare the necessary journal entry to record the bad debt expense for the year.

  Find how much were the total losses that were used

Find How much were the total losses that were used and how much loss is suspended to next year? (Both PTP and private interest)

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