What would yearly income be from retirement account

Reference no: EM131796787

Question: Preston expects to retire in 40 years at age 65. He is currently putting away 5% of his annual salary in a retirement plan that earns 5% per year. His employer is contributing 2% of his salary. Currently he is making $40,000 per year and he expects it to increase 3% per year.

1) What would his salary be at age 65?

2) How much would he have in his retirement account at age 65?

3) Preston expects to live for an additional 25 years what would his yearly income be from his retirement account? (Assume the he can earn the same interest amount of 5%)

Reference no: EM131796787

Questions Cloud

What is the annual ordering cost of the post card inventory : Post Card Depot, an large retailer of post cards, orders 9,746,180 post cards per year from its manufacturer. Post Card Depot plans on ordering post card.

Prepare the journal entry to record depreciation expense : Andrew Company purchased equipment at a cost of $150,000 that has a depreciable cost

Compute the amount of the consolidating entry : Compute the amount of the [ADJ] consolidating entry. Complete the consolidating entries according to the C-E-A-D-I sequence.

Verbal descriptions for the events : Give similar verbal descriptions for the events described by each of the following subsc's of O.

What would yearly income be from retirement account : Preston expects to live for an additional 25 years what would his yearly income be from his retirement account?

Determine the depreciable cost : Determine the depreciable cost and Calculate the depreciation expense per year under the straight-line method - Calculate the depreciation rate per unit

Test the hypothesis that the colas do not have a population : The null hypothesis is that the population mean is 16 ounces. For all three parts, report the alternative hypothesis, the t-value, the p-value.

What is the distribution of the length of the word picked : Suppose a word is picked at random from this sentence. a) What is the distribution of the length of the word picked?

Number show by the shape is 3 or more : Find a formula in terms of p for the probability that the number show by the shape is 3 or more.

User Account

All Pages