power of compounding
(Power of Compounding) If you’d like to have $5,000,000 at retirement in 45 years and you expect to earn 10 percent annually, which is around the average return over the past 50 years, what lump sum would you have to invest today?
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
(Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at...
(Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 26 years. She has found a mutual fund that will earn 7 percent annually. How much will Sarah have to invest today? a. If Sarah can earn 7 percent annually for the next 26 years, the amount of money she will have to invest today is If Sarah earned an annual return of 17 percent, how soon could...
Sarah Wiggum would like to make a single investment and have 2.1 million at the time...
Sarah Wiggum would like to make a single investment and have 2.1 million at the time of her retirement in 35 years. She has found a mutual fund that will earn her 7 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent. How soon could she retire? A If Sarah can earn 7 percent annually for the next 35 years, the amount of money she will have to invest today...
Sarah Wiggum would like to make a single investment and have $1.8 million at the time...
Sarah Wiggum would like to make a single investment and have $1.8 million at the time of her retirement in 35years. She has found a mutual fund that will earn 7 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? a. If Sarah can earn 7 percent annually for the next 35 years, the amount of money she will have to invest today is...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $1.6 milli...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 32 years. She has found a mutual fund that will earn 6 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? (Round to a. If Sarah can earn 6 percent annually for the next 32 years, the amount...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 28 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 16 percent, how soon could she then retire? a. If Sarah can earn 5 percent annually for the next 28 years, the amount of money...
If you invest $10,000 today and earn a 20% annual internal rate of return (IRR) over...
If you invest $10,000 today and earn a 20% annual internal rate of return (IRR) over five years (with all of the proceeds received at the end of the fifth year), then the amount you will receive at the end of the fifth year is: How much would you pay today for an investment offering a lump sum of $100,000 in five years if you hoped to earn an annual rate of return of 25%? You invest $300,000 today and...
Use the following to answer questions 28 – 29 (round to nearest whole dollar) The four...
Use the following to answer questions 28 – 29 (round to nearest whole dollar) The four actors below have just signed a contract to star in a comedy. Each person signs independent contracts with the following terms: Contract amount How contract is paid Actor 1 $2,500,000 Lump sum in 4 years Actor 2 2,650,000 Lump sum in 5 years Actor 3 760,000 Every year for 3 years Actor 4 590,000 Every year for 4 years Assume an annual discount rate of...
2.You decide to start saving for your retirement, in 25 years time. Today you make an...
2.You decide to start saving for your retirement, in 25 years time. Today you make an initial lump sum payment of 10,000, then decide to save 500 per semester and expect an average return of 6.6%(comp.semesterly or semiannually). How much will you have in the end, assuming you pay the money in the beginning of each semester? 3.Your bank has just launched a savings scheme which pays an interest at 5.15% monthly compounded, over 10 years. If you invest 100...
business finance
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire?
Austin Miller wishes to have $600,000 in a retirement fund 30 years from now. He can...
Austin Miller wishes to have $600,000 in a retirement fund 30 years from now. He can create the retirement fund by making a single lump-sum deposit today. Use your financial calculator or the appendixes to determine the lump sum amount needed if the fund that earns 6% annually. $ How much would Austin need to have on deposit at retirement in order to withdraw $45,000 annually over 15 years in the retirement fund earning 6%? $
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 32 years. She has found a mutual fund that will earn 6 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? (Round to a. If Sarah can earn 6 percent annually for the next 32 years, the amount...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 28 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 16 percent, how soon could she then retire? a. If Sarah can earn 5 percent annually for the next 28 years, the amount of money...
Most questions answered within 3 hours.
-
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 32 minutes ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 1 hour ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 1 hour ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 3 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 4 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 6 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 6 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 6 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 6 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 6 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 6 hours ago