# Today is your 35th birthday and it occurs to you that your current retirement savings may...

###### Question:

Today is your 35th birthday and it occurs to you that your current retirement savings may be insufficient to maintain for you the lifestyle to which you have become accustomed. The value of your retirement account today on your 35th birthday is $100,000. You plan to retire on your 65th birthday and to live until the day before your 83rd Your goal is to have a stream of cash payments on your 66th through 82nd birthdays that provides you with$150,000 of consumption annually in terms of today’s purchasing power. Your retirement account earns 10% per year (this is the effective annual rate), and the inflation rate is 2% forever. Ignore the value of your other assets and perform calculations as if deposits, withdrawals, and compounding of interest occur only once a year.

What cash (nominal) balance do you need in your retirement account on your 65th birthday to provide you with your desired retirement spending stream; i.e., what is the PV of all the cash flows at your 65th birthday received between your 66th and 82th birthday?

A cash flow of $500,000 may be received by Cynthia Bennett Company in one year, two years, or three years, with probabilities of 30%, 50%, and 20%, respectively. The rate of interest on default risk-free investments is 8%. Required: What is the expected present value of Cynthia Bennett' cash flo... 1 answer ##### FORMULA SHEET Question 16 A solid plastic cube with uniform density (side length 0.5 m) of... FORMULA SHEET Question 16 A solid plastic cube with uniform density (side length 0.5 m) of mass 100 kg is placed in a vat of fluid whose specific gravity is 1.2. What fraction of the cube's volume floats above the surface of the fluid? O C. 2/3 O 1.45... 1 answer ##### Help on 10 4! Thank you :-) 10. Below you see four different situations and force... Help on 10 4! Thank you :-) 10. Below you see four different situations and force diagrams for a circled system object for each situation. The first three involve an elevator. The fourth involves a box sliding over a smooth horizontal surface. In each case the initial velocity of the object is s... 1 answer ##### A Tesla coupon bond with a face value of$1,000 has a coupon rate of 6%...
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