Purchase Solution

Future and Present Value

Not what you're looking for?

Ask Custom Question

You are 30 years old and plan to retire at age 60. Your goal is to create a fund that will allow you to receive $100,000 per year for 25 years after the retirement. You know that you will be able to earn an average of 8% per year for all your accounts. If you make annual payments into a retirement account, how much will you need to save each year?

Purchase this Solution
Solution Summary

The solution explores future value and present value problem described below and provides an excellent answer to the question.

Solution Preview

This question can be divided into two parts. For the first part you need to know how much money the person should have when he retires in order to give himself 100,000 per year for 25 years at 8%.
So ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Present and future values

    .%)^1 Answer: Future Value= $11,000.00 Present Value= $9,166.67 Determines present value and future value.

  • Present Value and Future Value of Annuities

    377935 Present Value and Future Value of Annuities How would a manager calculate present value and future value for single amounts, annuities, and uneven streams of cash flow. 1.

  • Calculating interest rates

    42209 Interest Rates: Given Present/Future Value and Time Period Find the interest rate implied by the following combination of present and future values: Present Value=400, Future Value=684, Years=11 Present Value=183, Future Value=249, Years=4

  • Present Value / Future Values

    Future Value = 100X(1.04)^20 = $219.11 The solution explains the calculation of present value and future value

  • Time Value of Money

    The difference between present value and future value is the time when the value is measured. If the value is measured today, then it is called the present value. If the value is measured at any time in future it is called the future value.

  • calculation of present and future value of ordinary annuity

    The solution is comprised of detailed explanation of concept and calcuations of present value and future value of ordinary annuity.

  • Present and Future Value Calculations

    111852 Present and Future Value Calculations When would we use present value calculations? When would we use future value calculations? Which is more likely to be used in accounting and why?

  • Question about Present Value & Future Value

    annual interest rate=r= 10% Years=t= 3 Amount=Present Value= PV= $30,000 Future Value = FV=PV x (1+r)^t= $39,930.00 =$30,000. x (1+10.%)^3 Answer: $39,930.00 The expert computes the present value and future values received.

  • Determining present value

    PV = FVn (PVIF(i,n) Future-value interest factor (FVIFi,n) is a value used as a multiplier to calculate an amount's future value, and substitutes for the (1 + i)^n part of the equation.

  • Impact of Future value and Present value in investment decisions

    657065 Impact of Future value and Present value in investment decisions Future value and present value are alike because they both work with the time value of money. Future value is "the amount an investment is worth after one or more periods."

View More Related Solutions