Sign In
Not register? Register Now!
Essay Available:
Pages:
5 pages/β‰ˆ1375 words
Sources:
4 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Research Paper
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 25.92
Topic:

One Million Dollars Retirement Fund

Research Paper Instructions:

Write a 5 page paper on the following: Assume that you are 30 years old and you plan to accumulate $1 million by your retirement date, which is 30 years from now. Also, assume that you plan to live for 25 years after retirement – that is, until age 85. You plan to make 30 annual deposits of equal amount in your bank to save for retirement. The bank pays 10% interest annually. How much do you plan to deposit annually to accumulate $1 million for your retirement? How much will be your retirement payment (benefit)? What factor(s) can you change to reduce your annual deposits while improving your annual retirement benefit? Assume inflation is 0%. The paper should be in narrative format. It CANNOT be in question – answer format. Paper must include, but not limited to, the following: Introduction: Discuss what the paper is about. Please include discussion of Time Value of Money. Analysis: - Discuss the findings of your study. - Include numbers to support your analysis - Include the variables used in the computations in your discussion. - What variable(s) you could change to reduce your annual deposits while improving your annual retirement benefit? Conclusion: Based on your analysis, are you happy with your saving decisions? If so, why?

Research Paper Sample Content Preview:

One Million Dollars Retirement Fund
Name
Course
Instructor
Date
The concept of time value of money relates to the fact that the amount of money held currently has a different value in future (Drake & Fabozzi, 2009). This mainly occurs because money in the future has the potential to earn interest income and is also affected by inflation. Thus, both inflation and interest rates push up the value of the money in future. In other words, having the same amount of money now and future shows that the future value is actually less because of impact of both inflation and interest rate. Thus, one would prefer to have money at present or rather invest money to earn interest income in future (Drake & Fabozzi, 2009). Retirement planning incorporates the time value of money to increase the value of retirement benefits through investments and financial planning. This paper analyses the case of one million dollar retirement fund, looking into variables that would maximize the fund’s benefit without resulting to an increase in annual payments to the fund.
Retirement planning is necessary when evaluating a person’s net worth. In calculating the retirement benefits worth, one needs to take into account the accumulation of assets, as well as money invested and pension plans. However, the case scenario only looks into money save through a bank account. This will only provide information on the total worth of the retirement benefits but is inadequate to provide information on a person’s net worth. The future benefit of the retirement is approximately $ 1,000,000 and this relates to the value of the cash at the stipulated time which is 30 years. This is divided into an annual deposit of $6, 079 totaling to $ 182, 370 for the thirty years, and interest income of $ 817,589 for a cumulative interest income of $ 999, 959.
The future value of the investment depends on the interest rate, inflation rate, amount of annual payments and the n...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Order

πŸ‘€ Other Visitors are Viewing These APA Research Paper Samples:

HIRE A WRITER FROM $11.95 / PAGE
ORDER WITH 15% DISCOUNT!
Order Now