What is the value today of social security promise

Assignment Help Financial Management
Reference no: EM131499624

Assume that Social Security promises you $47,000 per year starting when you retire 45 years from today (the first $47,000 will get paid 45 years from now). If your discount rate is 4%. compounded annually, and you plan to live for 12 years after retiring (so that you will receive a total of 13 payments including the first one), what is the value today of Social Security's promise?

The value today of Social Security's promise is $. (Round to the nearest cent.)

Reference no: EM131499624

Questions Cloud

Investment project is estimated to have after-tax cash flows : A capital investment project is estimated to have the following after-tax cash flows, by year:
Arithmetic and geometric returns for the stock : what are the arithmetic and geometric returns for the stock?
Level monthly payments at an effective annual interest rate : Elaine will repay the mortgage over 20 years with level monthly payments at an effective annual interest rate of 8%.
What price do you expect art shares to sell for in four year : What price do you expect ART shares to sell for in 4 years?
What is the value today of social security promise : what is the value today of Social Security's promise?
Will your portfolio likely outperform or underperform market : Will your portfolio likely outperform or underperform the market in a period when stocks are rapidly falling in value?
Expected net present value of project assuming initial cash : Borussia Dortmund Manufacturing Company is considering 3-year project, What is expected net present value of the project assuming initial cash out of $2,000?
You will loose money by investing in common stock : Determine the probability that in any given year you will loose money by investing in common stock
What is the estimated cost of common equity to the firm : What is the estimated cost of common equity to the firm using the dividend growth? model?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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