ZuoTi.Pro
Question

QUESTION 14 You are scheduled to receive $100 in one year. If the interest rate increases, what will happen to the present value of this cash flow? O A The present value will stay the same. OB. The present value will decrease. O C. The present value will increase. D. Need more information

QUESTION 17 Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $35,000 and you expect your salary to increase at a rate of 4% per year as long as you work. To save for retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 3 1st birthday and will be 8% of this years salary. Likewise, you expect to deposit 8% of your salary each year until you reach retirement. Assume that your discount rates 9%. If you stick to this plan, the present value (at age 30) of your retirement savings is--. How much do you expect to have when you retire? WhoueSe, OA $45,175; $922,201 O B. S57,047; $600,566 O c. s23,487; $120,042 ODs80,578; $494,832

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Q.14

ANSWER : B : THE PRESENT VALUE WILL DECREASE

HIGHER THE RATE, LOWER THE PRESENT VALUE

Q.17

Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum ー E ゴWrap Text ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard Alignment Number Cells QNİ QM QN Q0 QR QS QT QU QV QW QY QZ RA INITIAL SALARY 35000 2800 P 4% 9% 35 INVESTMENT WILL BE 8% OF SALARY = 4 5 6 GROWTH = g = RATE r = YEARS = n = FUTURE VALUE OF SAVINGS FVGA = P((1+r)^n _ (1+g)An)/(r-g) FVGA-2912((1+0.09)A35 - (1+0.04)A35)/(0.09 FVGA 9 10 -0.04) 922201 12 13 14 15 16 17 18 19 /4 | CALCULATOR .. LOAN OPTIONS PRESENT VALUE OF SAVINGS PVGAFVGA/1+r)An VGA45175 (922201/(1+0.09)A35] ANS:A $45,175, $922,201 CAP STRU VALUE BOX DILUTIONDOLLAR COST AVGMORTGAGE EXPO SheetiSheet2Shel rences: x261 06:59 26-01-2019

0 0
Add a comment
Know the answer?
Add Answer to:
QUESTION 14 You are scheduled to receive $100 in one year. If the interest rate increases,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • QUESTION 19 Assume that you are 30 years old today, and that you are planning on...

    QUESTION 19 Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $35,000 and you expect your salary to increase at a rate of 4% per year as long as you work. To save for retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to...

  • Assume that you are 30 years old today, and that you are planning on retirement at...

    Assume that you are 30 years old today, and that you are planning on retirement at age 65. You expect your salary to be 40,000$ one year from now and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's...

  • 2.3) Assume that you are 30 years old today, and that you are planning on retirement...

    2.3) Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $40,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to...

  • Assume you are 25 and earn $37,000 per year, never expect to receive a raise, and...

    Assume you are 25 and earn $37,000 per year, never expect to receive a raise, and plan to retire at age 55. If you invest 5 percent of your salary in a 401(k) plan returning 11 percent annually, and the company provides a $0.50 per $1.00 match on your contributions up to 3 percent of salary, what is the estimated future value of your 401(k) account? Once you retire, how much can you withdraw monthly if you want to deplete...

  • pts) 4. Evangeline is 24 years old today. She recently graduated with a finance degree and...

    pts) 4. Evangeline is 24 years old today. She recently graduated with a finance degree and obtained a job as a financial adviser to a large company. She currently has an annual salary of $150,000. She expects her salary to increase at an average rate of 6% per year as long as she works. She plans to save for her retirement and has decided to make annual contributions to a retirement-savings account. She will make her first contribution when she...

  • Assume you are 25 and earn $32,900 per year, never expect to receive a raise, and...

    Assume you are 25 and earn $32,900 per year, never expect to receive a raise, and plan to retire at age 55. If you invest 5 percent of your salary in a 401(k) plan returning 11 percent annually, and the company provides a $0.50 per $1.00 match on your contributions up to 3 percent of salary, what is the estimated future value of your 401(k) account? Once you retire, how much can you withdraw monthly if you want to deplet...

  • You've recently graduated from the Chang school but have already started planning for your retirement. Your...

    You've recently graduated from the Chang school but have already started planning for your retirement. Your current job pays you $45,000/year and you expect this to increase by 5% annually. As part of your retirement plan you intend to make an annual deposit into an account starting on your 31st birthday (8% of $45,000) with the last contribution on your 65th. birthday, at which point you hope to retire. You expect to deposit 8% of your salary every year. If...

  • Assume that you are 30 years old today, and that you are planning on retirement at...

    Assume that you are 30 years old today, and that you are planning on retirement at age 65. You expect you will live for another 20 years after retirement. (A) (6 points) Suppose you forecast that you need to spend $300,000 at age 66 and the amount is expected to increase at a rate of 3% per year due to inflation. You can earn 8% annual interest rate on your savings. Therefore, the total amount you need to have at...

  • 16. You are scheduled to receive a $1,000 cash flow in one year and receive a...

    16. You are scheduled to receive a $1,000 cash flow in one year and receive a $1,250 cash flow in 3 years. If interest rates are 8.75% per year, what is the combined present value of these cash flows? A. $2,056.94 B. $1,976.48 C. $1,891.44 D. $1,817.46 E. $1,789.92 17. You are scheduled to receive a $950 cash flow in one year, receive a $1,000 cash flow in two years, pay a $500 payment in three years and pay a...

  • Suppose that you are 22 today and that your salary for the year ending today is...

    Suppose that you are 22 today and that your salary for the year ending today is $61,250. Suppose that you are paid on an annual basis at the end of each year; so you are receiving $61,250 today. You plan to retire at age 68 and will need 75% of your last year’s salary for your annual living expenses starting at age 69. You have saved $50,000 to date. All living expenses between now and retirement will be covered by...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT