Business, 07.06.2021 01:00 aime005

Ruby is 25 and has a good job at a biotechnology company. She currently has $10,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 8 percent, and she plans to leave it untouched until she retires at age 65. Ruby estimates that she will need $875,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $20,000 a year (she expects that Social Security will pay her an additional $15,000 a year). (LO 14.2) a. How much will Ruby’s IRA be worth when she needs to start withdrawing money from it when she retires? (Hint: Use Exhibit 1-A in the Appendix to Chapter 1, Time Value of Money.)

b. How much money will she have to accumulate in her company’s 401(k) plan over the next 40 years in order to reach her retirement income goal?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 18:20

The sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. the actual price level turns out to be 110. faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. sales from catalogs will

Answers: 3

Answer

Business, 22.06.2019 19:10

After the price floor is instituted, the chairman of productions office buys up any barrels of gosum berries that the producers are not able to sell. with the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month. how much producer surplus is created with the price floor? show your calculations.

Answers: 2

Answer

Business, 22.06.2019 20:00

With the slowdown of business, how can starbucks ensure that the importance of leadership development does not get overlooked?

Answers: 3

Answer

Business, 22.06.2019 23:00

Type of deposit reserve requirementcheckable deposits $7.8 - 48.3 million 3%over $48.3 million 10noncheckable personal savings and time deposits 0refer to the accompanying table. if a bank has $60 million in savings deposits and $40 million in checkable deposits, then its required reserves are$1.2 million.

Answers: 1

Answer

You know the right answer?

Ruby is 25 and has a good job at a biotechnology company. She currently has $10,000 in an IRA, an im...

Questions