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Essay heading: Old Alfred Road
Essay specific features
| Issue: |
Business |
| Written by: |
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| Date added: |
September 7, 1999 |
| Level: |
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| Grade: |
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| No of pages / words: |
2 / 521 |
| Was viewed: |
0 times |
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Essay content:
Roads does not start receiving payments today, but rather at the end of the month 1.***
180,000 = Monthly cash payment ((1/0.004)-(1/(0.004*1.004^240)) ?Annuity Factor
M=12, n=20, rmonthly=.004
180,000 = Monthly cash payment (154.0933029)
Monthly Cash Payments = (180,000 / 154.0933029) = $1,168.12
Then add the 750 from Soc...
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Sec. (which is already in real terms) = $1,918.12 ?This is how much he could spend every month if he uses up his portfolio at year 20. However, he cannot keep up his lifestyle in real terms, as the nominal value of $2,000 is still greater than his “allowance”. When thinking about his expenses in real terms, the $2000 will only keep growing every month because of the inflation factor...
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