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Need Help with the following in finance You have a $50,000 salary and you save 5% a month. What is your monthly savings and how
Need Help with the following in finance
You have a $50,000 salary and you save 5% a month. What is your monthly savings and how much will you save each year, ignoring the monthly compounding? |
For the above problem, assume you save the same dollar amount each year for 10 years and invest the savings at 4%. How much will you have at the end of the 10 years? |
How much would you have to save each year and invest at 4% for the next 20 years to have $100,000 at the end of the 20 years? How about if the rate is 6%? |
Your friend has a defined benefit plan and expects to retire at age 58 after 35 years of work, and the expected pension will be $40,000 a year. Your job has a 401k. Assume you also want to retire in 35 years, and want to be able to draw down $40,000 per year for the folllowing 30 years ( yes, there is a risk that you live past the age of 88). How much will you need to have amassed in order to generate the $40,000 income stream? How much will you have to save each year, for the next 35 years? Assume an investment rate of 5%? |
What is the difference between a defined benefit and defined contribution plan? |
What is your net worth if you have $75,000 in assets and $45,000 in liabilities? |
Do student loans count towards your liabilities? |
If your employer contributes to your 401k, is there any penalty for you? |
If your employer has a 50% matching policy, and you contribute $15,000 to your 401k, how much will you actually have? |
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