Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. At that time, you plan to move to the Caribbean, where you believe you can live comfortably on $200,000 per year. You also understand that inflation can impact your enjoyment of retirement so you would like the annual payments you receive to increase at a rate of 5% per annum. Your first payment of $200,000 will occur at age 66. You intend to live in the Caribbean until your 85th birthday, when you will receive your last installment from your retirement fund, move back to Canada, and freeload off your kids. You would also like to save enough money so that you can buy a new car when you are 35, and pay for a big retirement party when you are 65. You figure you will need to have $35,000 for the car and $10,000 for the party.
You estimate that you can earn an average return of 10% per annum on any money you invest over the next 60 years. You have just begun working and plan on saving $11,000 per year until you are 35 years old. You will make your first deposit one year from now. To ensure that you are able to achieve your objectives, you must first answer the following problems: (15 marks)

a. How much will you have to accumulate before you retire?

b. How much will you have to save yearly, from your 36th to your 65th birthday, in order to accumulate the amount from part (a) and also pay for your retirement party?

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M941306

Have any Question? 


Related Questions in Accounting Basics

Vaughn company reports the following financial information

Vaughn Company reports the following financial information before adjustments.   Dr. Cr. Accounts Receivable $155,400 Allowance for Doubtful Accounts   $3,890 Sales Revenue (all on credit)   800,700 Sales Returns and All ...

Assignment research applicationin this assignment you will

Assignment: Research Application In this assignment, you will use the Internet and other sources to gather and interpret information related to service and manufacturing organizations. Select either a service or a manufa ...

Assignment entries65 mackay industries limited mil is a

Assignment: Entries 65 MacKay Industries Limited (MIL) is a Canadian company that manufactures leather fur- niture. Sales in 20X3 were $265 million, with strong exports to the United States. MIL is the leading Canadian m ...

Accountingcase to assess assurance of learning goal ethical

Accounting Case to assess Assurance of Learning Goal (Ethical Perspectives) Michael Greer is the Marketing Vice President for Atlantic Lubricants headquartered in Boston with extensive operations in New York City that se ...

Assignment question 1 -impulse pty ltd impulse is an

Assignment Question 1 - Impulse Pty Ltd (Impulse) is an entertainment system manufacturer that was established in 2005. Your audit firm King & Queen have been the auditor of Impulse since its formation. The audit report ...

Please answer the following question analysis needed with

Please answer the following question. Analysis needed with explanation. Use in-text citation and reference page if necessary in APA format. Answers should be must be plagiarism free. Zaldor Corporation sells a specialize ...

Problem 1emma and laine form the equal el partnership emma

PROBLEM #1 Emma and Laine form the equal EL Partnership. Emma contributes cash of $100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of $100,000. A. How much gain. If any, must ...

Managerial accounting and financial accountingcompare and

Managerial Accounting and Financial Accounting Compare and Contrast Managerial Accounting and Financial Accounting. Be sure to discuss how managerial accounting is useful for providing information for at least one of the ...

On january 1 2011 ajax corporation signed a 1000000 7

On January 1, 2011, Ajax Corporation signed a $1,000,000, 7%, 10-year mortgage note to buy a new warehouse. The note will be repaid in 10 equal annual installments of $142,378. The first payment was made on December 31, ...

Accounting information systemsquestion 1a describe five

Accounting Information Systems Question 1 a) Describe five technologies that can support electronic commerce. b) List and explain five main reasons for implementing AIS in organizations. c) What is the role of a database ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro