What is the present value at retirement of javon

Reference no: EM133273841

Question - For calculation purposes, assume that Javon will earn a nominal rate of return of 7.00% per year compounded monthly on any investments that he has, now or in the future. Also assume that inflation will remain at a constant 2.50% per year compounded annually during the planning horizon. Javon's marginal tax rate is 35%. The tax rate on dividend income is 15%.

Javon has determined that in retirement, 35 years from now, he will need $4,000 per month, in today's dollars, in total pre-tax annual income.

What is the present value at retirement of Javon's retirement income need?

Reference no: EM133273841

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