Present Value problems
Not what you're looking for?
Please show work and the calculation on the FVAIF:
40 yr old establishes a retirement account that is expected to earn 7% annually. Contributions will be $2,000 annually at the beginning of each yr. Initially, the saver expects to start drawing on the account at age 60.
a) How much will be in the account when the saver is age 60?
B) If this investor found a riskier investment that offered 10%, how much in additional funds would be earned?
C) The investor selects the 10% investment and retires at the age of 60. How much can be drawn from the account at the beginning of each yr if life expectancy is 85 and the funds continue to earn 10%.
Purchase this Solution
Solution Summary
The solution provides excellent answer to the problem below.
Solution Preview
In the absence of future value tables, I am using Excel with the formula shown. Let me know if you need any help understanding the formulas:
Answer ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Lean your Process
This quiz will help you understand the basic concepts of Lean.