To retire at a decent age and move to Hawaii, an engineer plans to trust her account
Question:
To retire at a decent age and move to Hawaii, an engineer plans to trust her account to an investment firm that promises to make a real rate of return of 10% per year when the inflation rate is 4% per year. If the account currently is valued at $422,000 and she wants to retire in 15 years, how much (in then-current dollars) will have to be in the account for the realized rate of return to be a real 10% per year? Also, write a single- cell spreadsheet function to display the answer.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
Account will have to grow at rate of i f i ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Exxon had a policy of requiring its corporate pilots to retire at age 60. The company employers numerous pilots who fly jet planes to and from various locations worldwide. However, although many of...
-
You plan to retire at age 65. You anticipate needing $5,000 per month ($60,000 per year) after you retire. You expect to live for 20 years after you retire. You will work for 40 years, from age 25 to...
-
You are now 50 years old and plan to retire at age 65. You currently have a stock portfolio worth $150,000, a 401(k) retirement plan worth $250,000, and a money market account worth $50,000. Your...
-
Transform the following product by making the change of variable i = k + 1. k So when k and K +2 When k = 1, then i = n k II k +2 k = 1 = n+ 1 II i = 2 are expressed in terms of i, the results are k...
-
Bravo Wholesalers, Inc., began its business on January 1, 2017. Information on its inventory purchases and sales during 2017 follows: Required: 1. Compute the cost of ending inventory and cost of...
-
Discuss the view that the individual company financial statements in Germany are useful only for tax purposes.
-
A recent study examined the effects of carbon monoxide exposure on a group of construction workers. The following table presents the numbers of workers who reported various symptoms, along with the...
-
One mechanic services 5 drilling machines for a steel plate manufacturer. Machines break down on an average of once every 6 working days, and breakdowns tend to follow a Poisson distribution. The...
-
Can you elaborate on the principles and methodologies employed in the design and optimization of transportation networks to improve efficiency, safety, and environmental sustainability ?
-
Computer Village sells computer equipment and home office furniture. Currently the furniture product line takes up approximately 50 percent of the company's retail floor space. The president of...
-
An engineer planning for her sons college education made deposits into a separate high-risk brokerage account every time she earned extra money from side consulting jobs. The deposits and their...
-
You just made an investment in an insurance policy that is guaranteed to pay you $1.8 million 20 years from now provided you live that long. What will be the purchasing power of that amount with...
-
Recall Figure 12.3, showing the effect of immigrants on the net income of the native-born population, and redraw it with a larger number of immigrants than is already depicted in the figure. Show how...
-
Affect The word affect means "emotion." Carroll Izard identified nine basic emotions that people can experience: (1) interest-excitement, (2) enjoyment-joy, (3) surprise-startle, (4)...
-
Discrimination is a term often discussed in real estate education. Lenders discriminate by lending to borrowers with good credit rating and adequate income vs. borrowers with poor credit ratings....
-
. Consider the following MRP tableaus. Holding costs is $1/unit/week and setup cost is $100/order. a. Develop an MRP tableau if lot sizing method is Silver-Meal heuristic. Find the total cost of this...
-
RGF Distributors sells fitness products to retailers. You are the accountant for RGF Distributors. RGF's fiscal year-end is December 31 and the company uses a perpetual inventory system, combined...
-
How is concentration of economic power dangerous in terms of security and democracy? How do "leakages" through international trade and finance reduce the government's ability to fight recessions?...
-
In a second-order chemical reaction involving one reactant and having no back reaction, Solve this differential equation by separation of variables. Do a definite integration from t = 0 to t = t 1 ....
-
The Pletcher Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using...
-
Illustrate how the reference group concept may apply in practice by explaining how you personally are influenced by some reference group for some product. What are the implications of such behavior...
-
Give two examples of recent purchases where the specific purchase situation influenced your purchase decision. Briefly explain how your decision was affected.
-
Give an example of a recent purchase in which you used extensive problem solving. What sources of information did you use in making the decision?
-
Write using radical notation. Simplify, if possible. (125x3) 1 3 5x 8
-
Factor. 2 5p - 24p - 5
-
Now that you have reviewed information about Intermaweb Computer, you are ready to begin the first step in the accounting cycle, recording transactions. On this page of the practice set, you are...
Study smarter with the SolutionInn App