subject
Business, 12.11.2020 17:00 babytony1210

By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years. How much will the face value of the bond that you will be investing? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 23:00
Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.
Answers: 2
question
Business, 23.06.2019 00:20
According to the naeyc curriculum is effective when all of the following occur except
Answers: 2
question
Business, 23.06.2019 06:30
Will mark the ! hurry ! drag and drop the ethnic group to identify the country where it is the majority. ethnic groups may be used more than once. match to the right boxcristian greeks. arabs. persiansiran qatar cyprus iraq
Answers: 1
question
Business, 23.06.2019 19:30
How might a recent college graduate's investment portfolio differ from someone who is near retirement
Answers: 1
You know the right answer?
By the end of this year you would be 35 years old and you want to plan for your retirement. You wish...
Questions
question
Social Studies, 31.12.2020 14:00
question
History, 31.12.2020 14:00
question
Mathematics, 31.12.2020 14:00
question
Mathematics, 31.12.2020 14:00
Questions on the website: 13722360