About the making plans for retirement

Assignment Help Financial Management
Reference no: EM13894326

You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $80,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually.

What amount do you need in your retirement account the day you retire?

Reference no: EM13894326

Questions Cloud

What is the law of diminishing marginal returns : State the definition of marginal product, MP, both as a mathematical definition and with your own words. What is the "law of diminishing marginal returns"? How has it been derived?
Write a review of given articles and discuss key arguments : complete a review of articles, discussing key arguments and important findings. Argote, L & Ingram, P. "Knowledge transfer: A basis for Competitive Advantage in Firms", Organizational Behavior and Human Decision Processes.
Analyzing proposed expansion project : The Thomas Co. is analyzing a proposed expansion project. Currently, the company owns 15 acres of land, which it purchased for $6 million 5 years ago. The land is currently valued at $7.2 million and is totally debt-free. Should the Thomas Co. pursue..
Describe in words what a production function is : Sometimes it is said that producer theory is similar to consumer theory. In what ways are they similar and Describe in words what a production function is. Which variables are typically inputs?
About the making plans for retirement : You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $80,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retire..
Determine whether to open new product line-voice-write : Voice-Soft Inc. is trying to determine whether to open a new product line, Voice-Write, a speech-to-text product, which is expected to be competitive for four years. The cost of the new capital equipment including shipping and installation is $3100.
Marginal income tax rate including federal-state income tax : Contributing $2,000 per year into a tax deferred retirement plan will save how much in income taxes per year for a person in the 35% marginal income tax rate including federal and state income taxes
Calculate the cross-price elasticity for the other good : Suppose the price of the good is 5, and that is increases by 5%. As a consequence, the demand of another good decreases by 20 %. Calculate the cross-price elasticity for the other good. Is the other good a substitute good or a complementary good t..
What is the percentage change in price of bond : Both bond A and bond B have 10 percent coupons and are priced at par value. Bond A has 10 years to maturity, while bond B has 20 years to maturity. If interest rates suddenly rise by 1 percent, what is the percentage change in price of bond A and bon..

Reviews

Write a Review

Financial Management Questions & Answers

  Accept projects based upon fluctuations in cost of capital

What qualitative considerations are important for a company seeking to raise capital? Answer this by considering the effect of leverage in your response. Specifically, what expected effects will additional leverage have on a company’s decision to acc..

  Assumptions of the modified accelerated cost recovery system

Which of these are assumptions of the Modified Accelerated Cost Recovery System (MACRS)?

  Determine the outstanding loan balance

Find the unknowns in Big Chuck's abbreviated cash budget and determine the outstanding loan balance as of September 30, after any repayments have been made.

  Expansion project-requires initial fixed asset investment

Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.85 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be wort..

  Marginal rate of personal taxes for its stockholders

If Consolidated Power is priced at $50 with dividend, and its price falls to $46.50 when a dividend of $5 is paid, what is the implied marginal rate of personal taxes for its stockholders? Assume that the tax on capital gains for the marginal investo..

  What is its self-supporting growth rate

Maggie's Muffins, Inc., generated $4,000,000 in sales during 2013, and its year-end total assets were $2,400,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, How large a sales increase can the..

  Issues zero coupon bonds on the market

Atlantis Fisheries issues zero coupon bonds on the market at a price of $492 per bond. These are callable in 9 years at a call price of $550. Using semi annual compounding, what is the yield to call for these bonds?

  Receive upon buying this mortgage-backed security

You are an institutional money manager looking to add some Ginnie Mae MBS to your portfolio. "At the current price of 113-10, the calculated cash flow yield of 3.4788% represents the return that an investor is guaranteed to receive upon buying this m..

  What is the maximum amount mark should be willing to pay

Mark M. Upp has just been fired as the university bookstore manager for setting prices too low (only 20 percent above suggest retail). He is considering opening a competing bookstore near the campus, and he has begun an analysis of the situation. Wha..

  Underlying assumption of the dividend growth model

Which of the following is an underlying assumption of the dividend growth model

  How do they differ from edge act and agreement corporations

Why were IBFs created? How do they differ from Edge Act and Agreement corporations?

  Analyze the information contained in company balance sheet

Analyze the information contained in the company's Balance Sheet, Income Statement, Statement of Cash flows (Pages 13 - 17); "Notes to the Consolidated Financial Statements" pages 18 - 25 and the "Managements Discussion and Analysis of Financial ..

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