Answer:
The amount that you should have saved in your retirement account to receive this income is:
= $727,995.88.
Explanation:
a) Data and Calculations:
Expected lifespan = 24 years
Expected annual income = $75,000
Interest rate per year = 9%
The amount of savings in the retirement account to receive this income is calculated from an online financial calculator as follows:
N (# of periods) 24
I/Y (Interest per year) 9
PMT (Periodic Payment) 75000
FV (Future Value) 0
Results
PV = $727,995.88
Sum of all periodic payments = $1,800,000.00
Total Interest = $1,072,004.12
Answer:
income - expenses
Explanation:
net income is an entity's income minus all the expenses, taxes etc and net worth is the total wealth own by individual minus expenses.
Answer:
6.73%
Explanation:
the price of the bond in seven years is:
PV = $1,000 / (1 + 5.50%)¹⁰ = $585.43
PV of coupon payments = $64.50 x 7.538 (PVIFA, 5.5%, 10 years) = $486.20
market price = $1,071.63
using an excel spreadsheet of financial calculator, the annual rate of return:
year 0 = -1030.04
year 1 = 64.5
year 2 = 64.5
year 3 = 64.5
year 4 = 64.5
year 5 = 64.5
year 6 = 64.5
year 7 = 1136.13
IRR = 6.73%