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Money Management Midterm-1
Finance & Accounting
Pages 6 (1506 words)
Money and Management Midterm By [Name of Student] Finance and Accounting [Name of University] [Date] Contents Contents 1 PART I – Pension 4 Lockheed Martin Corporation 5 Background information about the company 5 Financial Ratios of Lockheed Martin 5 Earnings per Share 5 Price Earnings Ratio 6 Price per Book 6 Price per Sales 6 Return on Equity 7 Payout Ratio 7 Price per Cash Flow 7 Dividend Yield 7 Altera Corporation 8 Background information about the Company 8 Financial Ratios of Altera Corporations 8 Earnings per Share 8 Price Earnings Ratio 8 Price per Book 9 Price per Sales 9 Return on Equity 9 Payout Ratio 9 Price per Cash Flow 9 Dividend Yield 10 Conclusion 10 List of References 11 P
It is imperative to note that, the insurance companies are obliged to make regular and lifelong payments until the holder dies (Brealey & Myers, 1997). Consider the formula of calculating life annuity returns Payout= P*R*(1+R) exponent N/ (1+R) Whereby P is the principal, R interest rate and payout refers to the periodic payment. Take a percentage interest of 6% and use the annuity calculator for easy calculation. For a single life annuity, fixed amount to be paid is 3,333 per month. This adds up to EUR 39,996 annually. Therefore, annual periodic payment would be: A = EUR 39,996 Now I believe that I would need more money than EUR 39,996 annually. There would be different factors that would reduce the value of EUR 39,996 at that time like inflation. Therefore, when I retire and I think EUR 45,000 should be a valuable amount that I would need every year to spend my life happily. ...
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