FREE Trial

Your job pays you only once a year for all the work you did over the previous 12 months. Today,

Question:

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $50,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 5 percent of your annual salary in an account that will earn 11 percent per year. Your salary will increase at 4 percent per year throughout your career. How much money will you have on the date of your retirement 40 years from today?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 100% (7 reviews)

Input area Current salary 50 000 Percent of sala…View the full answer


answer-question
Answered By
tutor-profile-image
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details. PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+ 3+ Reviews 10+ Question Solved
Related Book For  answer-question
Fundamentals of corporate finance

Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books
Question Details
Chapter # 6
Section: Problems
Problem: 38
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: December 16, 2016 13:45:28
See More Questions

Students also viewed these Corporate Finance questions

Q:
After you graduate, you get a job in a small city where you have taken your sisters offer of living in her apartment. Your job pays you $20 per hour and you have up to 60 hours per week available....
A:
A a If you choose to take the bus you reduce your leisure time from 60 to 55 hours per weekand therefore can earn up to 20 55 1 100 per week If you choose to lease a car you can work up to 60 hours pe......
Q:
Plan production for the next year. The demand forecast is spring, 20,000; summer, 10,000; fall, 15,000; winter, 18,000. At the beginning of spring you have 70 workers and 1,000 units in inventory....
A:
Spring Summer Fall Winter Forecast 20 000 10 000 15 000 18 0......
Q:
Your company prepares financial statements only once a year. In accounting for uncollectible accounts it uses the allowance method. For the most recent year give general journal entries for the...
A:
Date Account Titles Explanation Debit Credit 1 cash 415 500 Accounts receivabl......
Q:
What is the one greatest strength of a pluralistic society? What is the one greatest weakness? Do these characteristics work for or against business?
A:
The textbook lists several strengths prevents power from being concentrated maximizes freedom of exp......
Q:
A company buys a machine for $28,100 on January 1, 2005. The maintenance costs for the years 20052008 are as follows: 2005, $2,100; 2006, $2,300; 2007, $8,700 (includes $6,500 for cost of a new motor...
A:
1 End Additional Accumulated Asset of Depreciation Depreciation Depreciation Book Maintenance Total......
Q:
King Supply maintains its internal inventory records using perpetual FIFO, but for financial reporting purposes, reports ending inventory and cost of goods sold using periodic LIFO. At the beginning...
A:
Cost of goods sold 15 000 LIFO reserve 75 000 60 000......
Q:
A P When possible, determine the truth values of the following symbolized statements. Let A and B be true, Y and Z false. P and Q have unknown truth values. If the truth value of the statement...
A:
Given A is true B is true Y is false Z is fal......
Q:
Papas Fried Chicken bought equipment on January 2, 2012, for $39,000. The equipment was expected to remain in service for four years and to perform 11,000 fry jobs. At the end of the equipments...
A:
Req 1 Depreciable cost for 2014 2015 after changing to SL method......
Q:
The current focus in many large organizations is to go global which can be interpreted as downsizing, re-engineering, and in general, a reduction in unionized employees.This week's discussion focuses...
A:
Introduction The globalization of large organizations often involves measures such as downsizing re engineering and reductions in unionized employees to cut costs and improve competitiveness This can......
Q:
Which of the main models of international classification of accounting do you prefer? Explain your reasoning.
A:
Preference would be for Continental European Model The reasoning for the c......
Q:
You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $95,000 per year for the next two years, or you can...
A:
Input area Amount per year in option 1 95 000 Amoun......
Q:
You need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at a 6.35 percent APR for this 360-month loan. However, you can afford monthly...
A:
Input area Number of years 30 Price o......
Q:
What was the important assumption made with respect to wage rates in the original Keynesian model? How does the new Keynesian model differ in its approach to that assumption?
A:
In the original Keynesian model nominal wages were assumed to be ri......
Q:
True or False Dividend to equity shareholders is always cumulative.
A:
False Dividends to equity shareholders can be either cumulative or non cumulative depending on the t......
Q:
Look at the two cacti in Figure 17-11. Both the leafy Pereskia in part a and the very desert-adapted Gymnocalycium in part b evolved from the same ancestorsleafy trees that were not themselves cacti....
A:
From the context provided it seems that Gymnocalycium has undergone more extensive natural selection......
Q:
True or False If a share is sold by a company for 3.75 and its nominal value is 1, the difference of 2.75 is known as a share premium.
A:
True The statement is correct If a share is sold by a company for an amount higher......
Q:
True or False The forfeited shares can be re-issued by the company at par, premium or discount.
A:
True Forfeited shares are shares that were issued by a company to a shareholder but have been taken......
Q:
Prepaid expenses require an adjustment to be made to the double entry accounts as follows: (a) Credit relevant expense account with prepayment before balancing off account; debit prepayment to same...
A:
The correct option is b Debit relevant expense account with prepayment before balancing off acc......
Q:
World Class Rings produces class rings. Its best-selling model has a direct materials standard of 16 grams of a special alloy per ring. This special alloy has a standard cost of $63.30 per gram. In...
A:
Req 1 Actual cost per gram 1 061 760 16 800 6 3 2 0 per gram R......
Q:
Walker, Inc., is an all-equity firm. The cost of the company's equity is currently 11.4 percent and the risk-free.rate is 3.3 percent. The company is currently considering a project that will cost...
A:
Net present value Present value of ca......
Contemporary Human Resource Management Text And Cases 4th Edition - ISBN: 0273757822 - Free Book