Graduate Essay Writers
Only the finest writers are selected to be a part of our team, with each possessing specialized knowledge in specific subjects and a background in academic writing..
Order for this Paper or similar Assignment Help Service
Fill the order form in 3 easy steps - Less than 5 mins.
Posted: December 20th, 2021
FIN – Camille Henley Retirement Case
It is December 31, 2011, and 30-year-old Camille Henley is
reviewing her retirement savings and planning for her retirement at age 60. She
currently has $55,000 saved (which includes the deposit she just made today)
and invests #2,000 per year (at the end of the year) in a retirement account
that earns about 9% annually. She has decided that she is comfortable living on
$40000 per year (in todayâs dollars) and believes she can continue to live on
that amount as long as it is adjusted annually for inflation. Inflation is
expected to average 2.36% per year for the foreseeable future. After
researching information on average life expectancy for females of her
background, her plan will assume she lives to age 90. She will withdraw the
amount needed for each year during retirement at the beginning of the year. So,
on December 31 at age 60, she will make her last deposit of $2,000 and the
following day (January 1) she will withdraw her first installment for
retirement.
1. If
Camille continues on her current plan, will she be able to accomplish it?
2. How would
the situation change if Camille were to start placing her $2,000 annual savings
into her retirement account on January 1st of each year rather than December
31st of each year? Assume that the investment still pays interest at the end of
the year.
3. If
Camille resumes making her deposits at the end of the year, how much would she
have to save each year to accomplish her objective?
4. Assume
that Camille continues with her current plan. What interest rate would she have
to earn on her investment to make it work?
5. If
Camille wishes to leave a $50,000 perpetuity to her alma mater, starting one
year from the year she turns 90, then how much extra money would she need to
have on December 31st of the year she turns 90? Assume that the investment will
earn 9%.
6. Rework
the previous question for the case where Camille wants the university investment
to grow by 5% per year.
Why Seek Our Custom Writing Services
Every Student Wants Quality and That’s What We Deliver
Affordable Prices
We balance affordability with exceptional writing standards by offering student-friendly prices that are competitive and reasonable compared to other writing services.
100% Plagiarism-Free
We write all our papers from scratch thus 0% similarity index. We scan every final draft before submitting it to a customer.
How it works
When you opt to place an order with Nursing StudyBay, here is what happens:
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.