Please show all your calculations clearly. 1. Assume that the best investment alternative you have earns...
Your grandpa wants to present you with a small apartment on your 30thbirthday. The apartment is expected to cost $400,000 then. He wants to invest in a 10 year CD (certificate of deposit) on your 20thbirthday so that it grows to be $400,000 on your 30thbirthday. What is amount should he deposit, if the CD pays an interest rate of 8% per annum, and the tax rate on interest income is 25%?
Suppose you want to have $700,000 for retirement in 35 years. Your account earns 5% interest. How much would you need to deposit in the account each month? Jenelle wants to invest $1600 in a savings account. Determine the interest rate (simple interest) required for Jenelle 's investment to double in value in 10 years. Round your answer to the nearest tenth of a percent. Answer:
Please show the work. Thank you for your help! Determine the size of your investment account 25 years from now (when you plan to retire) if you deposit $18,000 each year beginning 1 year from now, and the account earns interest at a rate of 13% per year The size of the investment account is $
please help with problems 1 and 2. thank you Exercise 1 Your parents have discovered a $12,000 bond at the bottom of their safe deposit box. The bond was given to you by your late grandpa on your fourth birthday. The bond pays an annual interest rate of 11%. Interest accumulates and is paid at the time the bond is redeemed. What is the worth of the bond at the time of your more recent birthday? (principal plus interest) Exercise...
1. Assume that you invest $3,249.66 and your investment grows at 9% for each of the first 2 years. At that point, you learn that the investment is likely to only earn 6% for the remaining 3 years. This means that you will not be able to reach your goal unless you invest more money. How much more would you have to deposit at the end of 2 years so that you can meet your goal? Round to two decimal...
Assume you are working in an investment company as an investment advisor. You have a new individual investor ( called Kim) who wants to invest in financial securities. Kim is 45 years old, married with 3 kids (all in school), works as a marketing manager in an international pharmaceutical company and lives in a big apartment with his family in New York City. Kim is a new investor who is looking for a long-term investment horizon and aiming income gain from...
please answer all in full 1. On your 1st birthday, you received a $10 savings account earning 6% annually. How much will you have in the account on your 30th birthday if you don't withdraw any money before then? 2. Your partner just promised to you that he/she will give you a graduation gift by paying half of of a new car when you receive an MBA degree in 2 years. Suppose that you also have $9,000 to invest today...
Show the excel formulas used and answer all questions Ex. 1 You have $5,000 in your savings account that pays 4% interest. How much will you have in your account after 20 years, a) if your bank pays annually compounded interest? b) if your bank pays monthly compounded interest? c) if your bank pays daily compounded interest? Current balance Interest Years Compounding Annually Monthly Daily a) FV b) FV c) FV Ex. 2 If you need $10,000 in 7 years...
1. Time Value of Money You have been offered a unique investment opportunity. If you invest $20,000 today, you will receive $1000 one year from now, $3000 two years from now, and $20,000 ten years from now. a. What is the NPV of the investment opportunity if the interest rate is 12% per year? Should you take the opportunity? b. What is the NPV of the investment opportunity if the interest rate is 2% per year? Should you take the...
Determine the size of your investment account 22 years from now (when you plan to retire) if you deposit $17,000 each year, beginning 1 year from now and the account earns interest at a rate of 8% per year. The size of the investment account is?