What lump sum is required to fund her needs

Assignment Help Financial Management

Reference no: EM131495703

Joyce Albertson wants to receive the equivalent of $40,000 in today's dollars at the beggining of each year for the next 15 years. She assumes that inflation will average 5% over the long run and that she can earn a 10% compound annual after -tax return on investments. What lump sum is required to fund her needs?

a)83,157

b) 442,042

c)421,950

d) 695,749

Reference no: EM131495703

Questions Cloud

Describe a characteristic of defined benefit plan : Which one of the following statements does not correctly describe a characteristic of a defined benefit plan?

According to poisson process at mean rate of five per hour : If Jim treats customer as finite calling population with number of customer 25 and each customer arrives according to Poisson process at mean rate of 5 per hour

Experiencing rapid growth : Navel County Choppers Inc. is experiencing rapid growth. what is the stock price?

Require annual retirement income : Paul and Lucy Reynolds have determined that they will require annual retirement income equal to $63,000 as based on their current amount of income.

What lump sum is required to fund her needs : What lump sum is required to fund her needs?

Currently are planning for retirement : Harold and Maude Kelley currently are planning for retirement. what amount must Kelley’s have accumulated at the time of their retirement to fund this payment?

The benefits of restricting risk of business owners : What is one of the benefits of restricting risk of business owners?

What is the breakeven stock price at expiration : What is the profit on the protective put position at expiration for the following stock prices: 27, 31, and 38? What is the breakeven stock price at expiration?

The net present value is : An investment of $83 generates after-tax cash flows of $38.00 in Year 1, $72.00 in Year 2, and $129.00 in Year 3. The net present value is

User Account

All Pages