Suppose that you plan to invest 400,000 baths annually for 25 years for a retirement . Your investment return rate is 4 % . a ) What is your total retirement fund ? b ) If you plan to retire with a lump sum of 25 million baths , what should be your alternative investment's return ? c ) If you cannot find any alternative investments and have to stick with the investment yields of 4 % , how much do you have to invest annually ?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...
icon
Related questions
Question
Suppose that you plan to invest 400,000 baths annually for 25 years for a retirement . Your investment return rate is 4 % . a ) What is your total retirement fund ? b ) If you plan to retire with a lump sum of 25 million baths , what should be your alternative investment's return ? c ) If you cannot find any alternative investments and have to stick with the investment yields of 4 % , how much do you have to invest annually ?
Expert Solution
steps

Step by step

Solved in 5 steps with 7 images

Blurred answer
Knowledge Booster
Social Security Benefits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
PFIN (with PFIN Online, 1 term (6 months) Printed…
PFIN (with PFIN Online, 1 term (6 months) Printed…
Finance
ISBN:
9781337117005
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Personal Finance
Personal Finance
Finance
ISBN:
9781337669214
Author:
GARMAN
Publisher:
Cengage