Ask Experts Questions for FREE Help !
Ask
    rabbi_master1's Avatar
    rabbi_master1 Posts: 2, Reputation: 1
    New Member
     
    #1

    Dec 11, 2011, 02:51 PM
    Retirement Planning, accounting homework
    We've decided, $100,000 annual salary is adequate to live comfortably today (2011). Our estimated date of retirement is 38 years from now (2049). Retirement benefit will last 20 years (starting on 2049 and ends 2069) with 20 annual payments. Expected interest rate/return on investment/required rate return is 10% while inflation expected to be 3% annually for the entire period (2010-2068).

    1. What will be the annual retirement benefit of 2049 providing similar purchasing power of 2011?
    2. What will be the total amount saved in the retirement account when the retirement benefit starts in the beginning of 2049 enough to cover 20 annual payments.
    3. How much money needs to be deposited at the end of every month starting in the year 2013 to accumulate enough savings to support the retirement?
    4. If we have $10000 in the retirement account today, what will be the new monthly deposit that you have calculated in #3?
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
    Uber Member
     
    #2

    Dec 11, 2011, 08:29 PM
    And this isn't homework? An investment advisor would be a good place to start.
    rabbi_master1's Avatar
    rabbi_master1 Posts: 2, Reputation: 1
    New Member
     
    #3

    Dec 11, 2011, 10:19 PM
    This is a homework problem
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
    Uber Member
     
    #4

    Dec 12, 2011, 11:16 AM
    Plerase read "Expectations for the Homework Help Board" at the top of this page.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Financial Accounting - Bond retirement journal entries [ 0 Answers ]

It is now January 1, 2011, and Cartoons Limited is considering a $10 million share issue. The company would like to improve its debt / equity ratio before proceeding with the Issue. Cartoons' Chief Financial Officer has suggested to the board of directors that the Company could retire its $5...

Homework accounting 2 [ 0 Answers ]

)What was the last official pronouncement of the Financial Accounting Standards Board in the year 2011? Briefly describe the pronouncement in your own words

Accounting homework [ 1 Answers ]

A deposit made by a company will appear on the bank statement as what?


View more questions Search