Why is the difference so large

Assignment Help Financial Management

Reference no: EM131011701

Assume you can earn 8.2% per year on your investments.

A. if you invest $180,000 for retirement at age 30, how much will you have 35 years later for retirement?

B. If you wait until age 40 to invest the $180,000, how much wll you have 25 years later for retirement?

C. Why is the difference so large?

Reference no: EM131011701

Questions Cloud

What are the benefits and drawbacks of accumulating cash : What are the benefits and drawbacks of accumulating cash balances rather than paying dividends and what effects do dividend policy have on this type of decision?

Market value ratios : Ratios are mostly calculated based on the financial statements of a firm. Taggart Goods Corp. just reported a net income of $5,000,000, and its current stock price is $23.00 per share. Taggart is forecasting an increase of 25% for its net income next..

Develop a new growth ring of an oak tree : How many vessels of radius 90 m would have to develop in a new growth ring of an oak tree to have an equal rate of total xylem ow as in the maple?

International business law paper : International Business Law Paper- Choose a legal issue or topic of particular interest to YOU from the news (i.e. TheNew York Times, The Wall Street Journal, Bloomberg Business Week.) The Issue or event should involve INTERNATIONAL BUSINESSAND LA..

Why is the difference so large : Assume you can earn 8.2% per year on your investments. if you invest $180,000 for retirement at age 30, how much will you have 35 years later for retirement? Why is the difference so large?

The owner of a manufacturing plant borrows : The owner of a manufacturing plant borrows $200,000 to buy new robotic equipment for the plant. The loan is to be repaid over 16 years in equal quarterly payments at 4% annual interest with no payments for the first year (interest does accrue the fir..

Federal tax system progressive or regressive : In general, is the U.S. federal tax system progressive or regressive? You bought 1,000 shares of Tund Corp. stock for $68.12 per share and sold it for $90.03 per share after a few years. How will your gain or loss be treated when you file your taxes?..

Genetics of peas-the weight of a dozen eggs : According to genetic theory, the blossom color in the second generation of a certain cross of sweet peas should be red or white in a 3:1 ratio. That is, each plant has probability 3/4 of having red blossoms, and the blossom colors of separate plan..

What is bond equivalent-discount yields on the investment : Investment of $20,000 in excess short-term cash in money market investment. Prospectus quotes the instrument at a true yield of 3.15% that is the EAR for this investment is 3.15%. Treasurer wants to know the money market yield on this investment to m..

User Account

All Pages