Homework Answers
![= 40 x12 monly = 480 Fv=P ( (atrinel) la n 2 x106= P[(1 +0.05)-1]$ (o.ws/12) 0.05 12 a 2x106 = 1526 P P = ($1311)](http://img.homeworklib.com/questions/1c5885d0-d5e2-11ea-9173-139c2c0a57a9.png?x-oss-process=image/resize,w_560)
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5. Suppose you want to retire 40 years from now and have 2 million in savings....
3(a). You want to retire 50 years from now, and you want access to ten million dollars ($10,000,000) when you do. You de...
3(a). You want to retire 50 years from now, and you want access to ten million dollars ($10,000,000) when you do. You decide to put some money towards buying a certificate of deposit that’ll be worth 10 mil in 50 years. The CD has an annual interest rate of 8%, and it compounds quarterly. How much do you have to put into this deposit?3 (b). Let’s say you put an equal amount of money into a simple interest account with...
Suppose you have 25 years until you retire, and that you desire a retirement nest-egg of...
Suppose you have 25 years until you retire, and that you desire a retirement nest-egg of $2,500,000 on the day you retire. Suppose also that you’ve saved $100,000 toward your retirement so far, and that your investment account earns a nominal rate of 7.5% per year, compounded monthly. In addition, suppose you expect a windfall inheritance of $200,000 five years from now that you will invest in this account. a) What is the effective interest rate, or annual percentage yield,...
1) (3 pts) Bob would like to have a total savings of $30,000 in 6 years...
1) (3 pts) Bob would like to have a total savings of $30,000 in 6 years to use as a down payment on a future house purchase. He has no money saved up now, but plans on depositing $350 per month at the end of every month to save for this goal. What is the periodic interest rate Bob must earn to reach his goal? What is the Annual Percentage rate? 1 Periodic *.ㅡ I Nominal (APR)- % 2) (3...
You want to have $10 million dollars when you retire in 45 years. How much do you...
You want to have $10 million dollars when you retire in 45 years. How much do you have to invest each month if you can earn 13% annual return (compounded monthly) on your investment?
Jeff is saving for his retirement 21 years from now by setting up a savings plan....
Jeff is saving for his retirement 21 years from now by setting up a savings plan. He has set up a savings plan wherein he will deposit $ 149.00 at the end of each month for the next 14 years. Interest is 5 % compounded monthly. (a) How much money will be in his account on the date of his retirement? (b) How much will Jeff contribute? (c) How much will be interest?
In 3 years from now you want to buy a new car. You expect the price...
In 3 years from now you want to buy a new car. You expect the price of the car of your dreams to be $55,000 (price in 3 years). How big are your equal monthly contributions to your savings account if you want to have enough money saved to buy that car in 3 years? Assume you start saving in two months from today and make your last contribution in 3 years (i.e., monthly payments at t = 2, 3,...
1,You have decided that you when you retire 40 years from now, you want to buy...
1,You have decided that you when you retire 40 years from now, you want to buy a lodge in Northern Manitoba that you believe will cost $100,000 at that time. You have found an investment opportunity that will yield an interest rate of 7.5% annually, compounded annually. How much will you need to invest now to reach your goal? Multiple Choice $5,541.94 $6,426.89 $4,091.67 $8,832.02 2. All else equal, holding the interest ready steady, the further out a cash flow...
You fell that you can retire, if you have the equivalent of $2 million of today’s...
You fell that you can retire, if you have the equivalent of $2 million of today’s purchasing power in your retirement account when you retire. Currently, you have $50,000 in this account and you anticipate that your investments will earn an average return of 6% per year (APR with monthly compounding). You expect to inflation to average 2% per year (also APR with monthly compounding). You want to retire exactly 30 years from today. You plan to start putting the...
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next...
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...
ASSESSMENT 5. You want to buy a condo 5 years from now, and you plan to...
ASSESSMENT 5. You want to buy a condo 5 years from now, and you plan to save $3,000 per year, beginningat the end of each year. You will make 5 deposits in an account that pays 6 % interest. Under these assumptions, how much will you have 5 years from today? a. $16,110,34 b. $16,911.28 c. $17,513.68 d. $15,976.84 e. $18,349.15 6. You have the opportunity to buy a perpetuity that pays $1,000 annually. Your required rate of return on...
1) (3 pts) Bob would like to have a total savings of $30,000 in 6 years to use as a down payment on a future house purchase. He has no money saved up now, but plans on depositing $350 per month at the end of every month to save for this goal. What is the periodic interest rate Bob must earn to reach his goal? What is the Annual Percentage rate? 1 Periodic *.ㅡ I Nominal (APR)- % 2) (3...
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...
ASSESSMENT 5. You want to buy a condo 5 years from now, and you plan to save $3,000 per year, beginningat the end of each year. You will make 5 deposits in an account that pays 6 % interest. Under these assumptions, how much will you have 5 years from today? a. $16,110,34 b. $16,911.28 c. $17,513.68 d. $15,976.84 e. $18,349.15 6. You have the opportunity to buy a perpetuity that pays $1,000 annually. Your required rate of return on...
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