What monthly income will ruth receive

Assignment Help Finance Basics
Reference no: EM132086981

Ruth, a widow, joined her employer's defined contribution pension plan 28 years ago and she is now reaching age 65. Ruth would like to use her pension assets of $167,432 to purchase a life annuity with monthly payments beginning at the end of her first month of retirement.

Assuming an annual nominal return of 5%, compounded monthly, and a life expectancy of 25 years, what monthly income will Ruth receive from her current pension assets?

Reference no: EM132086981

Questions Cloud

What is the effective annual yield : FIN201 - Corporate Finance Assignment - A bond has an 8% coupon, paid semi-annually. The face value is $100, What is the effective annual yield
Maturity composite index futures price : Suppose the bursa malaysia composite index is currently traded at 1,300 points if the one year T-bill rate 6 % and expected divided yield on the composite index
Affects the scheduling and controlling of project : Explain how the value of PERT estimating project management elements affects the scheduling and controlling of a project.
Presentation about system engineering and project management : Presentation about System engineering and project management - All the research and preparation for the presentations must be completed and submitted
What monthly income will ruth receive : Assuming an annual nominal return of 5%, compounded monthly, and a life expectancy of 25 years, what monthly income will Ruth receive from her current pension
Considered to be very competitive and dynamic environment : Today’s market place is considered to be a very competitive and dynamic environment. Explain what this means and give examples of this competitive dynamic.
Explain four differences between rrsp accounts and tfsas : Explain four differences between RRSP accounts and TFSAs. What advice would give these clients about their RRSP/TFSA?
Expedite the transfer and avoid probate taxes : Chester had a wife and 2 adult children when he died. Chester lived in Ontario and he has no will and so all of his asset will automatically go to his wife.
Characteristics and task characteristics of your work group : How well does the leader’s style match the follower characteristics and task characteristics of your work group? Identify strengths and improvement areas.

Reviews

Write a Review

Finance Basics Questions & Answers

  What criteria should it use to reject a batch

The company wants to be 95% sure that a rejected batch is really unsatisfactory. What criteria should it use to reject a batch?

  What is the total book value of debt

Jim's Mobile issued a 30-year, 7 percent semiannual bond 9 years ago. The bond currently sells for 88 percent of its face value.

  Required rate of return on a new stock issue

If Goldman Sacs charges a fraction 0.18 as a flotation cost, what is the required rate of return on a new stock issue?

  Overemphasis on short-term profits

Give reasons why managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense

  William monthly payments

If the simple annual interest is 4.2 percent, what are William's monthly payments? To the nearest dollar, how much will William owe on hisstudent loan after he makes payments for three years? Please show how you concluded the answer

  How much free cash flow does lopez expect

Computing free cash flow Shauna Lopez Company expects the following for 2016: Net cash provided by operating activities of $144,000.

  Describe the costing system

In at least one paragraph, describe the costing system that you would recommend Hershey use to account for its cost of goods sold and why. Include a few product costs you think would be traceable, which costs should be allocated, and how Hershey s..

  What is the aftertax cost in percent of the new loan

To raise money to finance the capital budget projects you've been evaluating, your firm plans to borrow money at an interest rate of 14%, before-tax. If your firm's effective tax rate is 40%, what is the aftertax cost in percent of the new loan?

  Is there an arbitrage opportunity here

It is now January. The current interest rate is 3%. The June futures price for gold is 1246.30, while the December future price is 1251.

  Estimate made from the three estimation methodologies

What Is the cost of new common equity considering the estimate made from the three estimation methodologies?

  What does an npv exactly equal to zero really mean

What does an NPV exactly equal to zero really mean?

  Write a 3explanation of major principles of investing funds

Write a 350- to 700-word explanation of major principles of investing funds. Cite 2 peer-reviewed, scholarly, or similar resources to support your document.

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