Business, 08.03.2021 20:00 diablo871

Sally just today turned 25 years old and has decided to start a retirement program. Beginning in exactly one year (on her 26th birthday) she will dedicate the amount of $15,600 into a retirement account. In addition, at the end of each consecutive year for a total of 40 consecutive years, a new amount of $15,600 will be placed in the same account. At the time of her 65th birthday Sally will retire and will make the 40th deposit. She will begin to withdrawal annually to spend in her retirement from her 66th birthday. Her plan is for the annuity to continue for the next 25 consecutive years (for a total of 25 total withdrawals) until she turns 90. a) Draw the timeline for Sally's retirement plan (starting from today)
b) What is amount she will be able to withdrawal per year if interest rates are 2%? (Hint: the first step is to solve for the total amount of balance in her account when she retires.)

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:50

Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th?

Answers: 1

Answer

Business, 22.06.2019 05:30

From a business perspective, an information system provides a solution to a problem or challenge facing a firm and represents a combination of management, organization, and technology elements. the organization's hierarchy, functional specialties, business processes, culture, and political interest groups are components of which element of information systems?

Answers: 1

Answer

Business, 22.06.2019 07:30

When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates

Answers: 1

Answer

Business, 22.06.2019 11:20

Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.

Answers: 3

Answer

You know the right answer?

Sally just today turned 25 years old and has decided to start a retirement program. Beginning in exa...

Questions