A man is planning to retire in 20 years he can deposit, Ask an Expert

Economics

A man is planning to retire in 20 years. He can deposit money for his retirement at 12% interest rate compounded monthly. It is estimated that the future general inflation (f) rate will be 4% compounded annually. What deposit must be made each month until the man retires (i.e., end of year 20 from now) so that he can make annual withdrawals of $20,000 in terms of today's dollars over the 15 years following his retirement? Assume that his first withdrawal occurs at the end of the first six months after his retirement.?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91950462

Have any Question?Write your Review or question?

Related Questions in Business Economics

Case studyobjectivesthis assessment item relates to course

Case Study Objectives This assessment item relates to course learning outcomes 1 and 4 as listed in the unit profile. Task description: In this task, you will build a case study based on the article: RBA decision 7th Aug ...

If a new technology in the us shale oil extraction could

If a new technology in the U.S. shale oil extraction could produce crude oil even more efficiently; at the same time, the U.S. federal government decided to subsidize people for electric car purchase, what would you expe ...

1 breeding records reveal that 1 out of every 8 puppies of

1. Breeding records reveal that 1 out of every 8 puppies of a certain Welsh Corgi female are runts. Since these puppies can't be sold for full price, we wish to examine the frequency with which this condition is likely t ...

In an inquiry into the nature and causes of the wealth of

In an inquiry into the nature and causes of the wealth of nations, Adam Smith listed three reasons for productivity to increase with specialization. What are these three reasons?

Toms income is 480and he spends it on two goods x and y his

Tom's income is $480and he spends it on two goods, X and Y. His utility function is U = XY. Both X and Y sells for $8 per unit. a. Use lagrangian function to calculate Tom's utility-maximizing purchases of X and Y. b. I ...

1 which of the following statements is not true about

1. Which of the following statements is not true about an excise tax? A- A unit tax is an excise tax. B- An excise tax is levied on the purchases of particular good or service. C-An excise tax is based on an individual's ...

Can you provide the answer and explain whythe price

Can you provide the answer and explain why? The price elasticity of demand for a good will be greater the less available are suitable substitutes for this good the longer the time period considered for a group of related ...

There is a proposal for a new special economic zone in new

There is a proposal for a new Special Economic Zone in New Jersey. Based on the other examples of SEZs that we have read about, what are the pros and cons of this policy for various stakeholders?

The increase in prescription drugs cost increases the drug

The increase in prescription drugs cost, increases the drug companies profit. Should there be restrictions to lower consumer cost and how much of their profit should be reinvested into research and development?

Describe two factors contributing to the gender pay gap

Describe two factors contributing to the gender pay gap. Write one equation or one graph for each. What policies could the government pursue to address each factor? Should the government do so?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert