Solved: Present value of future income, Finance Basics

+44 141 628 6080
[email protected]

Present value of future income

You are about to graduate, and you are wondering what is the present value of your future income. Your salary next year will be $85,000. You expect a 5% raise each year and the interest rate is 7%. Your plan is to retire in 32 years. What is the present value of your future income, rounded to the nearest dollar?

$2,323,623

$1,926,377

None of the answers above or below

$4,203,528

$1,072,417

View Complete Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Present value of future income

Reference No:- TGS0553220

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Explain the costs to products on the basis of standard

The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product.

Q : Watch the movie cinco de mayo

Let's watch the movie Cinco de Mayo and provide your understanding of why this date is an important historical event; provide also what ties does this event have with the Mexican Revolution.

Q : Integrate the instructional business

Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $770,000 cash for Old Master.

Q : What is the relevant cost of manufacturing the part

The following total costs were reported last year: Direct materials $ 30,000 Direct labor 55,000 Variable manufacturing overhead 45,000 Fixed manufacturing overhead 70,000 Total manufacturing cost $200,000 Valve Company has offered to sell Motor 1

Q : Present value of future income

Q : How might understanding auditing concepts prove useful

Discuss why there is a demand for auditing services in a free- market economy. what evidence suggests that auditing would be demanded even if it were not required by government regulation?

Q : To compute depreciation on the house

Judy's mother, Sarah, died on July 2, 2006, leaving Judy her entire estate. Included in the estate was Sarah's residence (325 Oak Street, Cincinnati, OH 45211).

Q : What is the reduction in net income

In 2010 the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the western states of a product called Zelenex. In payment, Moncrief agreed to pay Lester 20% of the gross profit recognized from the sale of Zelenex in

Q : Internal and external users of accounting information

Explain the ways in which the needs of internal and external users of accounting information are the same and different.

1935317

Questions
Asked

3,689

Active Tutors

1446634

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Present value of future income

Reference No:- TGS0553220

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Explain the costs to products on the basis of standard

Q : Watch the movie cinco de mayo

Q : Integrate the instructional business

Q : What is the relevant cost of manufacturing the part

Q : Present value of future income

Q : How might understanding auditing concepts prove useful

Q : To compute depreciation on the house

Q : What is the reduction in net income

Q : Internal and external users of accounting information

How social determinants of health affect the physiological

What helps to be more professional

What when a counselor asks a client to pretend to interview

What options is true in relation to validity

Describe psychology research methods

Reviewing your cliftonstrengths themes

Identify ego psychology limitations

Solution Preview :

Prepared by a verified Expert

Finance Basics: Present value of future income

Reference No:- TGS0553220

Recent Questions Asked Finance Basics

Q : Explain the costs to products on the basis of standard

Q : Watch the movie cinco de mayo

Q : Integrate the instructional business

Q : What is the relevant cost of manufacturing the part

Q : Present value of future income

Q : How might understanding auditing concepts prove useful

Q : To compute depreciation on the house

Q : What is the reduction in net income

Q : Internal and external users of accounting information

Asked Questions