What percentage of your salary must you save each year

Assignment Help Financial Management
Reference no: EM131450316

You have 30 years left until retirement and want to retire with $1.2 million. Your salary is paid annually, and you will receive $62,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn a return of 9 percent on the money you invest.

If you save a constant percentage of your salary, what percentage of your salary must you save each year?

Reference no: EM131450316

Questions Cloud

What would you do to ensure protection for incarcerated sex : If you were a warden, what would you do to ensure protection for incarcerated sex offenders? Should they be treated and housed differently?
Evaluating vision and mission statements : Review the case study entitled "Evaluating Vision and Mission Statements at Harley Davidson."
How much interest did you pay on the loan in the past year : What are your monthly payments if your current loan balance is $368, 600? How much interest did you pay on the loan in the past year?
Write a program that draws maps requested by the user : You will download a Geographical Database File which contains coordinates of boundaries of the 48 states. Write a program that draws maps requested by the user.
What percentage of your salary must you save each year : If you save a constant percentage of your salary, what percentage of your salary must you save each year?
Identify a particular area of criminal justice : Identify a particular area of criminal justice.Define the area's boundaries by explaining the methodologies and statistical techniques used.
What is the present value of the offer if the discount rate : What is the present value of the offer if the discount rate is 8 percent?
Separate the educational from hospitality : I asked for this assignment beforethe first part is okay but the second part i need a one page only for the second part so just ignore.
Treasury securities being issued for the first time : Banks "create" money whenever they purchase treasury securities being issued for the first time.

Reviews

Write a Review

Financial Management Questions & Answers

  What was your real return

Say you own an asset that had a total return last year of 17 percent. Assume the inflation rate last year was 3.6 percent. What was your real return?

  Calculate european call price using the general equation

Consider a three-period (four-date) binomial model that has the following characteristics: • Current price for underlying stock S = $40, Exercise price X = $40 • In each period, the stock price goes up by 6% or down by 2% from what it was in the prev..

  Recommending controls

You will have the opportunity in this Discussion to recommend sound internal controls over sales invoices and receivables. If controls are not in place over these functions, companies are susceptible to errors, fraud, and losses. In the following sce..

  What is the receivables turnover and annual credit sales

A7X, Inc., has an average collection period of 22 days. Its average daily investment in receivables is $81,000. What is the receivables turnover? What are annual credit sales?

  How much are home owners paying in annual mortgage interest

Suppose home owners owe $5.5 trillion in mortgage loans. If the mortgage interest rate is 5 percent, approximately how much are home owners paying in annual mortgage interest? $? If the interest rate drops to 4 percent, by how much will annual intere..

  What is the sharpe ratio for stock

A- Investments B and C both have the same standard deviation of 20% and have the same correlation to the market portfolio. If the expected return on B is 15% and the expected return on C is 18%, which investment would investors prefer? B- The market ..

  Calculate end-of-year balance for accounts receivable

Chris’s Outdoor Furniture, Inc., has net cash flows from operating activities for the last year of $450 million. The income statement shows that net income is $425 million and depreciation expense is $55 million. At the beginning of the year, the bal..

  Purchased grain tithes or shares in farm output

An investor was afraid that he would become like King Lear in his retirement and beg hospitality from his children, so he purchased grain "tithes," or shares in farm output, for 660 pounds. The tithes paid him 71 pounds per year for 32 years. What in..

  Shares dividend stock fund

Suppose you invested $60 in the shares Dividend Stock Fund (DVY). It paid a dividend of $0.70 today and then you sold it for $65. What was your return on the investment?

  Propose a range of cost of capital estimates to consider

The beta for GM is 1.185, the beta for the automobile industry is 0.97, the equity premium on the world market is assumed to be 6%, and the risk-free rate is 3%. Propose a range of cost-of-capital estimates to consider in the analysis.

  The euronote market and the eurocommercial paper market

What is the difference between the Euronote market and the Eurocommercial paper market?

  The net community benefit expense

A hospital incurs $10 million of cost to treat Medicaid patients and receives $7 million in payment. Actual charges for these Medicaid patients were $20 million. The net community benefit expense that would be reported in Schedule H of IRS Form 990 w..

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