Professor, In trying to apply my knowledge in the real world, I am trying to create...

Professor,

In trying to apply my knowledge in the real world, I am trying to create a realistic retirement schedule. However, I am running into difficulties using both a financial calculator as well as our equations from class in doing this.

I am trying to do the following: plan a retirement schedule between the ages of 22 and 68, in which I would deposit 25% of my income each year. The income starts at 80,000 with an annual growth rate of 5% and, to be realistic, assuming an interest rate of 2.5%. I will assume for simplicity that I receive my first salary ($80,000) when I turn 22, and my last salary when I turn 68. As soon as I receive a salary, I will save 25% of it.

However, this raises issues, as if I try to use the equation for the present value of a growing annuity with a 5% growth rate and 2.5% discount rate, r-g will yield a negative number. Also, I could not find online how to do this on my HP 10bII+ financial calculator and I don't want to manually enter 47 payments.

Do you know how I could overcome this obstacle?

() Start by drawing the timeline, showing the first three and the last two deposits, ie the deposits at t = 22, 23, 24, 67 and 68 (the amount of each deposit and how you calculated it).

Expert Solution

The basic assumption while computing any future value using the annuity formula is that the amount of annuity (i.e investment) is constant every year.

In the given case as there is increment in salary at 5% every year our investment value keeps on increasing by 5%every year as well.

In the given case we can use excel and compute the Future value of investment at the time of retirement.

The investment value at the time of retirement is $5,371,419

You can use

ekkarill92 answered 2 years ago

In trying to apply my knowledge in the real world, I am trying to create a...

In trying to apply my knowledge in the real world, I am trying to create a realistic retirement schedule. However, I am running into difficulties using both a financial calculator as well as our equations from class in doing this. I am trying to do the following: plan a retirement schedule between the ages of 25 and 70, in which I would deposit 20% of my income each year. The income starts at 80,000 with an annual growth rate of...

I am trying to create my own doubly linkedlist class and here is what I have...

I am trying to create my own doubly linkedlist class and here is what I have so far. my addfirst is adding elements forever and ever, and I could use some help. This is in C++. Please help me complete my doubly linkedlist class. the addfirst method is what I would like to complete. #ifndef DLLIST_H #define DLLIST_H #include "node.h" #include using namespace std; template class DLList { private: Node* head = nullptr; Node* tail = nullptr; ...

1. I am trying to determine the level of measurement of my data type? I am...

1. I am trying to determine the level of measurement of my data type? I am looking for advice on Nominal, Ordinal, Interval, and Ratio 2. Does the data set have any categorical variables? I am trying to Describe the data set below in very general terms? This data consist of 8 variables: Which are GRE Scores, TOEFL Scores, University Rating, Statement of Purpose, Letter of Recommendation Strength, Undergraduate GPA, . Research Experience, and Chance of Admit. Name Type Description...

I am trying to start saving for retirement. I am investing all my cash into the...

I am trying to start saving for retirement. I am investing all my cash into the S&P 500, which will assume consistently 9.8% interest, compounded annually. I initially put a lump sum of $100 into my account, and I will deposit $10 every second week. a) After 10 years, how much money will I have invested? b) After 10 years, if I sold all of my stocks, how much money will I have in my account? c) After 25 years,...

Hi I am having the following problem. At the moment I am trying to create a...

Hi I am having the following problem. At the moment I am trying to create a bode plot for the following function. G(s)=(Ks+3)/((s+2)(s+3)) Note: Not K(s+2)! I then want to plot multiple bode plots for various values of K. Eg. 1,2,3, etc. I am having two separate issues. 1. How do I define the TF with a constant K in the location required (a multiple of s in the numerator) 2. How do I create multiple bode plots for values...

I am trying to create a classified balance sheet and I am unsure what is involved...

I am trying to create a classified balance sheet and I am unsure what is involved when reporting the current assets, liabilities and owners equity?

This is my code for python. I am trying to do the fourth command in the...

This is my code for python. I am trying to do the fourth command in the menu which is to add an employee to directory with a new phone number. but I keep getting error saying , "TypeError: unsupported operand type(s) for +: 'dict' and 'dict". Below is my code. What am I doing wrong? from Lab_6.Employee import * def file_to_directory(File): myDirectory={} with open(File,'r') as f: data=f.read().split('\n') x=(len(data)) myDirectory = {} for line in range(0,199): ...

I am trying to create bit masks to create a new binary number with the original...

I am trying to create bit masks to create a new binary number with the original bits' orders turned around, and concataneted. For example, int test=0b01100010001010001001(20 bits) now, I need bit masking to make it: int result = 20th bit, 10-1 bits, 11th bit, 19-12 bits, in this order. So in this case, answer would be: 0(20th bit)10100010(10-1 bits)0(11th bit)1011000100(19-12 bits). Im trying to do something like int res |= test & 0x7F800; res |= test& 0x400; Can't seem to...

Suppose I am trying to guess the salary of one of my fellow professors who I...

Suppose I am trying to guess the salary of one of my fellow professors who I think is 40 years old, has been at xxuniversity for 5 years, and has 25 publications. I am provided with the following regression analysis results from several alternative models that predict salary (in CAD) from these variables, based on N=35 participants. Note: yrs = years. Model 1; R-squared = 0.578; Adjusted R-squared = 0.537 Coefficient Standard Error t p-value Intercept 86248.19 10016.43 8.61 ...

Working with Python. I am trying to make my code go through each subject in my...

Working with Python. I am trying to make my code go through each subject in my sample size and request something about it. For example, I have my code request from the user to input a sample size N. If I said sample size was 5 for example, I want the code to ask the user the following: "Enter age of subject 1" "Enter age of subject 2" "Enter age of subject 3" "Enter age of subject 4" "Enter age...

Question