What is the maximum amount mr kulkarni can spend

Assignment Help Financial Accounting
Reference no: EM132975734

Question - Mr. Kulkarni a young executive requested you to develop an early retirement plan for him. He wants to invest Rs 80000 per year beginning from his 30th birthday for next 30 years at EAR of 10%. From his 60th year Mr. Kulkarni will tour the world for 5 years and needs a large amount for the same. After his tour he wants to receive an annual income of Rs 500000 per year for next 15 years. Assuming EAR at 10% for entire time period; what is the maximum amount Mr. Kulkarni can spend on his world tour?

Reference no: EM132975734

Questions Cloud

Advent of the forth industrial revolution : Discuss how businesses can prosper during these current Covid-19 circumstances and with the advent of the forth industrial revolution
What is the credit to the share premium account : Assuming that 80% of the share options vested were exercised in 2023, what is the credit to the share premium account as a result of the exercise?
What annual interest rate should the bank set : The bank's required real rate of return is 3 percent per annum. What annual interest rate should the bank set
Calculate new machine internal rate of return for monty pix : Calculate the new machine's internal rate of return? Calculate the new machine's net present value assuming a 16% discount rate?
What is the maximum amount mr kulkarni can spend : Assuming EAR at 10% for entire time period; what is the maximum amount Mr. Kulkarni can spend on his world tour
Calculate the profitability index of the two opportunities : Calculate the profitability index of the two opportunities. Donald Martin is evaluating two new business opportunities. Each of the opportunities shown
Explain the multi-national organization : Suppose that you have been selected to lead a newly established multi-national organization affiliated to United Nations (UN). What kind of leadership approach
Describe a loyalty program : How each of the three works ( or might work) for the example that you have chosen and describe. Choose and describe a loyalty program that you participate
What is the purpose of the drawings account : What does the term "owner's equity" mean with respect to the business overall?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Develops an effective marketing strategy for products

Develops an effective marketing strategy for products, evaluates international competition, identifies legal and regulatory issues, locates financing and development projects that support manufacturing and promotion of products

  Compute the cash payback period for each project

Compute the cash payback period for each project. Compute the net present value for each project. Compute the annual rate of return for each project.

  List the main types of legal business structures

List the main types of legal business structures you could create in Australia. Consider each business structure option by analysing the key features

  What is the firm after taxed cost of debt the tax rate

What is the firm after taxed cost of debt given the tax rate is 30%. How many bonds need to be issued to receive the required amount of fund?

  What is the annual equivalent

Assume that you have the following cash flows at the following times: 0: -$100 1: $0 2: $100 3: $200 What is the Annual Equivalent (A) of this series of Cash Flows for time periods (0, 1, 2, 3) i=10%.

  Determine the covered interest rate parity

According to the Covered Interest Rate parity (CIRP), is the GBP underpriced/overpriced in the actual forward contract? Which of the following is true?

  Narrow application of management accounting

The narrow application of management accounting that deals with costing products is known as:

  Which adjustments must be included as part of consolidation

A subsidiary entity sold goods to its parent entity. Which adjustments must be included as part of the consolidation entry to eliminate this transaction?

  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..

  Dismissal for failing to violate affirmative public policy

In general, employees are protected against dismissal for failing to violate an affirmative public policy enacted into law by state legislatures or though decisions of a State court system. Do we want to ever extend public policy beyond the affirmati..

  What was the cost of one pound of saffron in US dollars

The conversion rate from euros (€) to U.S. dollars was € 1 = $ 1.21. If Saffron cost € 7 per gram. What was the cost of one pound of saffron in U.S. dollars.

  How many orders will be placed each year

Question - Cheesburger and Taco Company purchases 11,801 boxes of cheese each year. How many orders will be placed each year

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