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1. Gene wants to have $310,000 in his investment account 20 years from today. Matt also...

1. Gene wants to have $310,000 in his investment account 20 years from today. Matt also wants $310,000 in his investment account but he is only willing to wait 15 years. How much more would Matt have to deposit today as compared to Gene if they both are to reach their goals and they both earn 14 percent on their investments?

$19,454.50

$17,124.65

$20,873.78

$22,238.81

2.

You want to have $7,500 saved 8 years from now. How much less can you deposit today to reach this goal if you can earn 7 percent rather than 5 percent on your savings?

$751.85

$723.45

$711.23

$739.41

3.

What is the present value of $19,500 discounted at 9 percent for 10 years?

$8,237.01

$8,594.52

$7,904.84

$8,089.57

4.

Charlie invested $7,300 in a stock last year. Currently, this investment is worth $8,988.38. What is the rate of return on this investment?

23.13 percent

21.31 percent

23.26 percent

22.63 percent

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Answer #1

Answer to Q#1 (First question in the list Option-(c): $20,873.78 Reason: Annual interest rate, RATE Number of years of savings, NPER Annual deposits, PMT Target maturity value, FV Interest compouding type, TYPE Amount to be deposited today Matt 1496 15 $o $310,000 $310,000 Gene 1496 20 SO 0) 0-0 if compounds at the end of of each year; 1 if compounds at the beginning of each year $22,556.13 $43,429.91 [Ref: NOTE Therefore Matt have to deposit more today as compared to Gene if they both are to reach their goals $20,873.78 [$43,429.91 - $22,556.13]NOTE For Gene: Amount to be deposited today is calculated using EXCEL FUNCTION PV(rate,nper,pmt,fv,type) where rate-14%; nper

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