Math
betsy a recent retiree requires 6000 per year in extrs income.she has 50,000 to invest in b rated bonds paying 15% per year or in a certificate of deposit paying 5% per year. how much money should be invested in reach to relaize exacrly 6,000 in interest pery yesr
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Betsy, a recent retiree, requires $6,000 per year in extra income
Betsy, a recent retiree, requires $6,000 per year in extra income. She has $60,000 to invest and can invest in B-rated bonds paying 13% per year or in a certificate of deposit (CD) paying 3% per year. How much money should be invested in each to realize exactly $6,000 in interest per year? The amount of money invested at 13%?The amount of money invested at 3%?
A $50,000 deposit earns 6.75% for ten years. If the account loses 2.5% per year after...
A $50,000 deposit earns 6.75% for ten years. If the account loses 2.5% per year after that for three years. what is the value of the account at the end of that third year? (Dollar) Ten years ago, Ralph invested $20,000 and locked in a 6.5 percent annual interest rate for 30 years (end 20 years from now). Lauren can made a twenty year investment today and lock in 5.65 percent interest rate. How much money should she invest now...
1. Allen Paige is planning to invest $10,000 in a bank certificate of deposit (CD) for...
1. Allen Paige is planning to invest $10,000 in a bank certificate of deposit (CD) for five years. The CD will pay interest of 9 percent compounded annually. What is the future value of Allen’s investment? How much would that investment be if Allen received simple interest only instead of compounded interest? 2. Mary Grace expects to need $50,000 for a down payment on a house in six years. How much would she have to invest today in an account...
1068 TIME VALUE OF MONEY 11. In 1966, the average tuition for 1 year in the...
1068 TIME VALUE OF MONEY 11. In 1966, the average tuition for 1 year in the MBA program at the University of Chicago was $3,600. Thirty years later, in 1996, the average tuition was $27,400. What is the compound annual growth rate in tuition (rounded to the nearest whole percentage) over the 30-year period? 12. You want to buy a Volvo in 7 years. The car is currently selling for $50,000, and the price will increase at a compound rate...
Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit (CD) account...
Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit (CD) account pays 1.5%, while a riskier bond fund pays 8.5% in interest. Scott figures he needs $46,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk? at 1.5% $ at 8.5% Round answers to the nearest dollar. Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit...
You plan to invest an amount of money in five-year certificate of deposit (CD) at your...
You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded monthly. How much must you invest if you want the balance in the CD account to be $8,500 in five years? Please explain the formula.
can someone walk me through all the problems? LESSES 10-6, 108 Certificates of Deposit and Effective...
can someone walk me through all the problems?
LESSES 10-6, 108 Certificates of Deposit and Effective Annual Yield Your money earns interest at a higher rate when you buy a certificate of deposit than it does when you invest it in a regular savings account. Most certificates earn interest compounded daily. The annual yield is the rate at which your money earns simple interest in one year. INTEREST EARNED - AMOUNT - ORIGINAL PRINCIPAL ANNUAL YIELD - INTEREST FOR ONE...
Certificates of Deposit and Effective Annual Yield Your money earns interest at a higher rate when...
Certificates of Deposit and Effective Annual Yield Your money earns interest at a higher rate when you buy a certificate of deposit than it does when you invest it in a regular savings account. Most certificates eam interest compounded daily. The annual yield is the rate at which your money earns simple interest in one year. INTEREST EARNED - AMOUNT - ORIGINAL PRINCIPAL INTEREST FOR ONE YEAR PRINCIPAL ANNUAL YIELD - Use the table below to answer the problems. AMOUNT...
Question 1: Ali has $50,000 to invest. He is considering two investments. The first is a...
Question 1: Ali has $50,000 to invest. He is considering two investments. The first is a utility company common stock that costs $50 per share and pays dividends of $2 per share. He does not expect the value of this stock to increase. The other investment under consideration is a highiy rated corporate bond that currently sells for $1000 and pays annual interest rate of 5% After 10 years these bonds will be repaid at par-value ($1000 per $1000 invested)....
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual...
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual (stated) rate is 4% on the CD and it is compounded quarterly. Rates have increased and you are considering reinvesting in another certificate of deposit. However, if you withdraw the money from the original CD, you suffer a 10% penalty on the entire balance (interest and principal): a. If you make the withdrawal today, how much would you have remaining? (8 Points)
A $50,000 deposit earns 6.75% for ten years. If the account loses 2.5% per year after that for three years. what is the value of the account at the end of that third year? (Dollar) Ten years ago, Ralph invested $20,000 and locked in a 6.5 percent annual interest rate for 30 years (end 20 years from now). Lauren can made a twenty year investment today and lock in 5.65 percent interest rate. How much money should she invest now...
1068 TIME VALUE OF MONEY 11. In 1966, the average tuition for 1 year in the MBA program at the University of Chicago was $3,600. Thirty years later, in 1996, the average tuition was $27,400. What is the compound annual growth rate in tuition (rounded to the nearest whole percentage) over the 30-year period? 12. You want to buy a Volvo in 7 years. The car is currently selling for $50,000, and the price will increase at a compound rate...
Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit (CD) account pays 1.5%, while a riskier bond fund pays 8.5% in interest. Scott figures he needs $46,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk? at 1.5% $ at 8.5% Round answers to the nearest dollar. Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit...
can someone walk me through all the problems?
LESSES 10-6, 108 Certificates of Deposit and Effective Annual Yield Your money earns interest at a higher rate when you buy a certificate of deposit than it does when you invest it in a regular savings account. Most certificates earn interest compounded daily. The annual yield is the rate at which your money earns simple interest in one year. INTEREST EARNED - AMOUNT - ORIGINAL PRINCIPAL ANNUAL YIELD - INTEREST FOR ONE...
Certificates of Deposit and Effective Annual Yield Your money earns interest at a higher rate when you buy a certificate of deposit than it does when you invest it in a regular savings account. Most certificates eam interest compounded daily. The annual yield is the rate at which your money earns simple interest in one year. INTEREST EARNED - AMOUNT - ORIGINAL PRINCIPAL INTEREST FOR ONE YEAR PRINCIPAL ANNUAL YIELD - Use the table below to answer the problems. AMOUNT...
Question 1: Ali has $50,000 to invest. He is considering two investments. The first is a utility company common stock that costs $50 per share and pays dividends of $2 per share. He does not expect the value of this stock to increase. The other investment under consideration is a highiy rated corporate bond that currently sells for $1000 and pays annual interest rate of 5% After 10 years these bonds will be repaid at par-value ($1000 per $1000 invested)....
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual (stated) rate is 4% on the CD and it is compounded quarterly. Rates have increased and you are considering reinvesting in another certificate of deposit. However, if you withdraw the money from the original CD, you suffer a 10% penalty on the entire balance (interest and principal): a. If you make the withdrawal today, how much would you have remaining? (8 Points)
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