Your retirement account to achieve your goal

Assignment Help Financial Management
Reference no: EM132066603

Suppose that you are age 25 today and plan on retiring at age 65. You determined that you need to have saved $680329 in real dollars by the time you retire. How much must you contribute (in real dollars) each year to your retirement account to achieve your goal? Assume the following:

you make annual contributions;

each contribution is the same amount in real dollars;

the first contribution will be one year from today;

your last contribution will be at age 65;

your portfolio earns a real annual rate of return of 6.29%, compounded annually.

Do not round at intermediate steps in your calculation. Round your answer to the nearest dollar. Do not type the $ symbol.

Reference no: EM132066603

Questions Cloud

App-based transportation service : Monte Carlo Simulation: Uber provides an app-based transportation service and it is one of the fastest growing companies with a strong investor backing.
Prepare the journal entries to record these transactions : Prepare the journal entries to record these transactions on the books of Pagnucci Co. under a perpetual inventory system
Identify potential improvements for the future : BIZ102 Understanding People and Organisations - To what extent do you agree with the results of the self-assessment? Use examples from your professional practic
What kinds of support services does the family need : Frank is a 25-year-old veteran who has served two tours of duty in Iraq. While there, he lost his right arm while removing wounded soldiers from the combat.
Your retirement account to achieve your goal : How much must you contribute (in real dollars) each year to your retirement account to achieve your goal?
Compute the prices of knock-out calls with barrier : Compute the prices of knock-out calls with a barrier of $38.
What impacts the prenatal process of development : After watching What We Learn Before We're Bornand Infant Mental Health, you will be answering the following questions within YouSeeU.
Calculate the npv for the project and irr : Using this information, calculate the NPV for the project. Calculate the IRR. Is it acceptable?
Compares your company ratios to the industry standards : Provide an analysis that compares your company’s ratios to the industry standards.

Reviews

Write a Review

Financial Management Questions & Answers

  What financial risks is vicky assuming

What financial risks is Vicky assuming? What risks will Vicky face because she is hiring four people?

  Total after tax cash flow that will result from selling

Net income is 1,012. Interest expense totals 266, while EBITDA is 2,584. If taxes are 633, what is depreciation and amortization (DA) ? A business purchases depreciable equipment for 198, and sells it a few years later for 140. At the time of the sal..

  Different capital structures-equity plan and levered plan

Hale Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II).

  What is the value at risk return

An asset has normally-distributed returns, with mean of 10% and standard deviation of 19.5%. What is the 4% VaR (value at risk) return?

  What causes the big change in the returns on the annuities

Which investment offers the highest return?- Which offers the highest return if the payouts are doubled?- What causes the big change in the returns on the annuities?

  What is the value of the floating-rate bond

What are the remaining payment dates? What is the value of the floating-rate bond?

  What is the annual ordering cost of the post card inventory

Cheeseburger and Taco Company purchases 10,075 boxes of cheese each year. It costs $25 to place and ship each order and $3.38 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is t..

  How much are you willing to pay for one share of this stock

The company justr announced that future dividends will be increasing by 2 percent annually.

  Maximum profit that you could gain from this strategy

You purchase one IBM March 160 put contract for a put premium of $13. The maximum profit that you could gain from this strategy is _________. You write one IBM July 138 call contract for a premium of $15. You hold the option until the expiration date..

  Determine the after-tax cost of debt

The Walsh Company needs to compute its Weighted Average Cost of Capital (WACC) for the years ahead based on current market values.

  Future value of an annuity

Your client is 21 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $12,000 per year; and you advise her to invest it in the stock market, which you expect to provide an average re..

  Should the firm invest in an average-risk project

Company ABC has 3-year bonds outstanding. The bond’s coupon rate is 10% and it is selling at $1,000. The total value of the bonds is $10M. The company also has preferred stocks, which are worth $5M. If an average-risk project will produce a 10% rate ..

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