What must be the amount of your first deposit today

Assignment Help Managerial Accounting
Reference no: EM133023958

Question - Today is January 1, 2022. You plan to retire on January 1, 2052. Starting today, you want to deposit a fixed amount every year into the All-Smiles Retirement Fund which provides an expected annual yield of 6 percent for the next 30 years. After your retirement, you expect to live for another 30 years. Considering your projected lifestyle, you expect to need $150,000 per year. You want to make your first annual withdrawal from the Fund on the 31st of December 2052. Using your understanding of the yield curve, you project that you will get an annual return of 7 percent on your und balances, starting January 2052. What must be the amount of your first deposit today?

Reference no: EM133023958

Questions Cloud

Network restrictions : The network restrictions surrounding the web authentication service is one layer of defense. Is that sufficient?
Calculate the cash balance at the end of each month : A long-term loan of $300,000 will be received at the beginning of March. Calculate the cash balance at the end of each month
How would you treat this for taxation purposes : If Mrs A worked at a jewellery store and her employer gave her a sales bonus of a diamond ring valued at $10,000 how would you treat this for taxation purposes
What would be your monthly payment : Question - If you were to borrow 8,100 over five years at .10 compounded monthly, what would be your monthly payment
What must be the amount of your first deposit today : Considering your projected lifestyle, you expect to need $150,000 per year. What must be the amount of your first deposit today
Find the cost of capital : A firm issued 10,000, 10% debentures of Rs,. 10 each at a premium of .5% with a maturity period of 20 years. The tax rate is 50%. Find the cost of capital
What is the residual income for the stock division : The company's minimum rate of return is 15%. What is the residual income for the Stock Division with the additional project
What should the current price of the stock be : The company just paid its annual dividend (Do) of $2.00 per share. If the required rate of return on Brady's stock is 10%, what should the current price
Compute the predetermined overhead rate : The company also estimated $1,400,000 of fixed overhead cost for the coming period. Compute the predetermined overhead rate

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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