Present-value comparison) You are offered $100,000 today or $340,000 in 15 years. Assuming that you can earn 14 percent on your money, which should you choose?
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(Present-value comparison) You are offered $100,000 today or $340,000 in 15 years. Assuming that you can earn
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- You are offered $100,000 today or $300,000 in 13 years. Assuming that you can earn 11 percent on your money, which should you choose? If you are offered $300,000 in 13 years and you can earn 11 percent on your money, what is the present value of $300,000? $ ___________(Round to the nearest cent.)You are offered $90,000 today or $300,000 in 11 years. Assuming that you can earn 14 percent on your money, which should you choose? If you are offered $300,000 in 11 years and you can earn 14 percent on your money, what is the present value of $300,000 ? Round to the nearest centYou are offered $80,000 today or $300,000 in 11 years. Assuming that you can earn 14 percent on your money, which should you choose? If you are offered $300,000 in 11 years and you can earn 14 percent on your money, what is the present value of $300,000?
- If you are considering the purchase of a consol that pays $60 per year forever, and the rate of interest you want to earn is 10% per year, how much money should you pay for the consol?If you invest $11,000 today, how much will you have in each of the following scenarios? (Click here to see present value and future value tables) A. 10 years at 8% B. 8 years at 12% C. 15 years at 15% D. 18 years at 5%Suppose you wish to retire 30 years from today .You have determined that you would need $75,000 annually once you retire, which you will withdraw at the end of each year. You estimate that you will earn 6% on your retirement funds, compounded annually, and that you will live for 20 years after retirement. how much funds would you need on retirement to fullfill your goals above.?
- Jim Nance has been offered an investment that will pay him $860 three years from today. a. If his opportunity cost is 9% compounded annually, what value should he place on this opportunity today? b. What is the most he should pay to purchase this payment today? c. If Jim can purchase this investment for less than the amount calculated in part (a), what does that imply about the rate of return that he will earn on the investment?Assume you currently have $220,000 that you are ready to invest for retirement. In addition, you plan to save $6,000 per year at the end of each year for years 1-10 $25,000 at the end of year 11 $9,000 per year at the end of each year for years 12-20 Assuming you earn 9.1% as an annual rate of return, how much will you have 20 years from today when you retire?Present value: Maria Addai has been offered a future payment of $750 two years from now. If she can earn 6.5 percent, compounded annually, on her investment, what should she pay for this investment today? Please use Excel to solve
- When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be earning 6% per year. Find PV Annuity: If you wish to do that for 10 years starting one year after you retire, what does the balance in your retirement account have to be when you retire? Find PV Annuity: If the account will be earning 3% per year, and you wish to do that for 20 years starting on the day you retire, what does the balance in your retirement account have to be when you retire?in planning for your retirement, you would like to withdraw $80,000 per year for 17 years, the first withdrawal will occur 20 years from today. A- what amount must you invest today if your return is 10% per year? B-What amount must you invest today if your return is 15% per year?You have 30 years left until retirement and want to retire with $2.6 million. Your salary is paid annually, and you will receive $76,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn a return of 9 percent on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Perentage of Salary:______________