Withdraw every year for 20 years retirement

Assignment Help Finance Basics
Reference no: EM132481662

Your current salary is $100,000 per year. Every year you save 10 percent of your salary and invest it in a retirement plan which provides you a guaranteed return of 6 percent per year. Assume the deposits will be made at the end of each year for the next 40 years.

a) How much will you have at the end of 40 years if your salary grows at 6 percent per year?

b) What annual fixed amount will you be able to withdraw every year for 20 years following retirement? (Assume you continue to earn 6 percent per year)

Reference no: EM132481662

Questions Cloud

What is the present value of a 3-year annuity : What is the present value of a 3-year annuity of $300 if the discount rate is 7%? (Do not round intermediate calculations. Round your answer to 2 decimal places
Describe the unique impact or different rates of the problem : Based on your research, briefly describe 2 to 3 mechanisms to increase the cultural relevance of a prevention program with the identified population.
What is project npv-bottoms up diaper service : Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $1,800 and sell its old washer for $600.
Define professionalism and the professional values : Personally, define professionalism and the professional values (social justice, altruism, human dignity, autonomy, accountability, and integrity).
Withdraw every year for 20 years retirement : What annual fixed amount will you be able to withdraw every year for 20 years following retirement? (Assume you continue to earn 6 percent per year)
Identify advocacy action to take to address target problem : Identify one advocacy action to take to address the target problem at each of the following levels: institutional, community, and public policy levels
What acs services would you recommend and why : Explain how the American Cancer Society (ACS) might provide education and support. What ACS services would you recommend and why?
Find the depreciation charge year : If the sewing machine is sold after 3 years for $25,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?
Briefly describe the project design and sources of evidence : Briefly describe the project's design, sources of evidence, and how they will be obtained. You do not need to describe the procedures in detail

Reviews

Write a Review

Finance Basics Questions & Answers

  Under what conditions is this view likely to be correct

In 2004, Congress adopted a Medicare prescriptivism drug benefit which would, in effect, subsidize the purchase of drugs by the elderly.

  How many oid bonds must the firm issue to raise

How many OID bonds must the firm issue to raise $3,000,000? Disregard flotation costs, and round your final answer up to a whole number of bonds.

  Computing the nominal rate

The terms of the sale were 4/11, net 38. What is the nominal rate? That is, compute the APR.

  What does the market believe that 2-year securities

If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Round your answer to two decimal places.

  While the actual processing of job 2 was not affected by

hazell company allocates overhead on the basis of direct labor hours. it allocates overhead costs of 4000 to two

  Should the firm switch technologies

which will increase the fixed costs for the firm by 51 percent but decrease the variable costs per unit by 51 percent. If the firm expects to sell 45000 books next year, should the firm switch technologies?

  Share of tartan corporation

If the beta of the stock is 0.8, what is the maximum price you should pay for a share of Tartan Corporation?

  Should you now go back and adjust the woman salary

He demands $85,000 and you agreed to pay him that amount. Should you now go back and adjust the woman salary? Why or why not

  What should happen to nominal interest rates

If expected inflation declines by 2%, what should happen to nominal interest rates according to the Fisher effect?

  What types of stocks might an investor seeking an income

If an investor is not looking for an income stream from investing in stocks, then what would be the most likely motive for buying the stock?

  What is the market capitalization of a firm

Assume a book value per share of $10 and a price per share of $24. What is the market capitalization of a firm with 2,000,000 outstanding shares?

  What is the gain ignoring transactions costs

Assume that a futures contract on Treasury bonds with a face value of $100,000 is purchased at 92-20. If the same contract is later sold at 94-12.

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