What lump sum do they need to invest today to attain

Assignment Help Financial Management

Reference no: EM131966021

Kevin and Jennifer are ready to retire. They want to receive the equivalent of $40,000 in today's dollars at the beginning of each year for the next 50 years.

They assume inflation will average 3% over the long run, and they can earn 11% (compounded annually) on their investments.

What lump sum do they need to invest today to attain their goal?

Reference no: EM131966021

Questions Cloud

Which decision is in kims best interest : Kim is a dvisional manager at General Rotors. Her compensation is based on the division's net income and she plans to retire in a year.

What is the annual worth of each alternative : DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $ 3,200 , an estimated life of 10 years.

The company need to meet its target fixed assets-sales ratio : If Williamson's sales increase 12%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio?

Advise how barry might challenge validity of the contract : Advise how Barry might challenge the validity of the contract on the basis of the statements made by Angelo before the contract was entered

What lump sum do they need to invest today to attain : They assume inflation will average 3% over the long run, and they can earn 11% (compounded annually) on their investments.

Use afn equation to forecast the additional funds carlsbad : Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year.

Discuss an adjusted book value approach : Define economic value and explain how an adjusted book value approach to valuing assets and liabilities moves book value nearer to economic value.

How many years did kerry own the antique : Kerry estimated the average annual compound rate of return on the antique was 15%. Approximately how many years did Kerry own the antique?

Examine the impact malpractice has on the healthcare field : In a paper, examine the impact malpractice has on the healthcare field. In your analysis be sure to include mention of defensive medicine.

User Account

All Pages