Present value of $1 @4.5% of 20 years | 0.41464286 | =1/1.045^20 |
Amount need to Invest today will be | $ 82,928.57 | =200000*0.41464286 |
Correct answer is option a. | ||
You need $200,000 in 20 years for your investment purposes. If you can cam 4.5% per...
You need $150,000 in 18 years for your investment needs. If you can earn 6% per year, how much do you need to invest today? Select one: a. $62,551.57 b. $52,551.57 c. $72,851.57 d. $55,551.57
1. The more return sought the less risk that must be undertaken. select one: True False 2) you need $200,000 in 20 years for your investment purposes. if you can earn 4.5% per year how much do you need to invest today ? select one: a) $80,928.57 b) $85,928.50 c) $ 82, 928.57 d) $ 84,958.55
You manage a food bank in your community. You estimate that you will need $200,000 per month to meet the needs of your population. If you can earn 3% APR, compounded monthly on your investments, how much do you have to invest today to fund one year for your community ?
(a) Suppose that you can invest with a continuously compounded rate of 5.25% per annum. (i) If you invest $50,000 today, how many years will it take for your investment to be worth $1 million? (ii) If you want your investment to grow to be $1 million in 10 years, how much do you need to invest today? (iii) Compute the equivalent effective 1-year rate
You need $40,000 in ten years for the purchase of a new car for your nephew who will be graduating college. You currently have $20,000 saved and want to invest it for ten years at a 6% rate of return. Will you be able to achieve your investment goal in ten years? Answer If not, then how much more would you need to invest today, instead of the $20,000, to accumulate that goal in ten years? Answer If not, and you...
Problem 9: Calculating Present Values. You need $40,000 in nine years. If you can earn .22% per month, how much will you have to deposit today? | will have to deposit $ -, today. Problem 10: Calculating Present Values. You have decided that you want to be a millionaire when you retire in 32 years. 10a. If you can earn a 8% return, how much do you have to invest today? I have to invest $ today 10b. If you...
Q3. Consider the following capital market. You want to be able to withdraw 1$150K five years from today in order to pay for your entire graduate school education. (a) If you can earn a 4.29% rate ofreturnper year, how much do you need to invest today? (b) If you can earn 4.21%olyear, how much do you need to invest one year from today? (c) If you can earn 4.2%/year, how much must you deposit at the end of each year...
If you invest $1,000,000 for 10 years, how much will your investment grow to if you can earn 5% p.a. compounding monthly? Select one: a. $1,628,894.63 b. $1,647,009.50 c. $1,700,883.22 d. $607,161.04 e. $1,344,556.09
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...
20. Assume that you are setting up your retirement plan by considering two investment plans together. (Your retirement in 20 years). You want to earn a total of $1,000,000 after 20 years from the following two investment plans together. Investment plan #1 : You currently have $20,000 in the bank and decide to invest that $20,000 in a money market account for 20 years which you feel will generate a return on 6% per year. Investment plan #2: You also...