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?

User Account

All Pages