You are 22 years old and you want to have $1 million in your retirement account at age 50. How much money do you need to invest each year (to the nearest $100), if you can get an 8% annual rate of return on mutual funds that invest in S&P 500 stocks? OA $35,700 OB.$10,500 OC$15,600 OD. $20,600 Reset Selection

You are 22 years old and you want to have $1 million in your retirement account at age 50. How much money do you need to invest each year (to the nearest $100), if you can get an 8% annual rate of return on mutual funds that invest in S&P 500 stocks? OA $35,700 OB.$10,500 OC$15,600 OD. $20,600 Reset Selection

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If you invest the $10,000 you receive at graduation (age 22) in a mutual fund that averages a 12% annual return, how much will you have at retirement in 40 years? a. $930,510 b. $909,090 c. $510,285 d. $783,879
Suppose you invest $5,000 into a mutual fund that is expected to earn a rate of return of 7%. The amount of money you will have in 10 years is closest to which of the following? The amount you will have in 25Lyears is closest to which of the following? O 1) $53,500; $802,500 O 2) $2,552.56; $3,257.79 O 3) $9,835.76; $27,137.16 O 4) $3,138; $ 1,311,892 5) None of the answers are correct
which one is correct answe please confirm? Q16: If you invest the $10,000 you receive at graduation (age 22) in a mutual fund that averages a 12% annual return, how much will you have at retirement in 40 years? a. $930,510 b. $510,285 c. $909,090 d. $783,879
You decide to contribute to a mutual fund that averages 3.6% return per year. If you contribute $600 quarterly. Round all answers to the nearest cent as needed. a) How much will be in the account after 20 years? $ b) How much of this money did you deposit? $ c) How much of this money is interest earned? $ Submit Question Question 3
3. If you invest P5,000 in a mutual fund with a total annual return (interest rate) of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a.P3,402.92b.P6,597.08c.P7,000.00d.P7,346.64
May I ask for an explanation and solution to the question for a better understanding. Thank you! 3. If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a. P3,402.92 b. P7,346.64 c. P4,629.63 d. P5,400.00
Suppose you invest $4600 in a mutual fund. Over 9 years, your investment grows in value to $9800. What is your annual return? State your answer as a percentage rounded to 1 decimal place. [Only give the numerical answer. Do not enter a percentage sign (%) in the answer box.] • Previous hp Not saved g
Suppose you invest $3200 in a mutual fund. Over 5 years, your investment grows in value to $8500. What is your total return? State your answer as a percentage rounded to 1 decimal place. [Only give the numerical answer. Do not enter a percentage sign (%) in the answer box] ◆ Previous hp Not saved Submit Our
5. After sitting through your QL class, you are struck by the necessity to being investing for retirement as soon as possible. You therefore decide to invest $100 per month over the next 40 years in a good growth- stock mutual fund account that will earn an average of 9% APR, compounded monthly. Determine how much you would have in your retirement account at the end of those 40 years assuming you start with $0 in this account. a. $33,788.24 c. $468,132.03 b. $48,000.00 d. $945,478.65
Now consider your financial objective is to save $500,000 for preparing your retirement, assuming 30 years from now. If you invest your RRSP savings in a mutual fund which can realize an average return of 10% per year. To achieve your goal, how much do you need to save at the end of each year over the 30-year period? a. 4,039.26 b. 3,039.62 c. 2,985.54 d. 10,988.32 What is the FV of $100 deposited today into an account with an APR 12.6%, compounded semiannually for 10 years? a. 1478.96 b. 3460.06 c. 327.63 d. 339.36 A car dealer offers payment of $525.32 per months for 60 months on a $30,000 car after making a $5000 down payment. What's the loan's APR? a. 10.4798% b. 9.5224% c. 1.9609% d. 0.7935%
You invest in a mutual fund that charges a 5% front-end load, 1% total annual fees, and a 2% back-end load, which decreases 0.5% per year. How much will you pay in fees on a $10,800 vestment that does not grow if you cash out after 3 years of no gain? Mutiple Choice O O C $540 $109 $745 $895 A
You invest in a mutual fund that charges a 5% front-end load, 1% total annual fees, and a 2% back-end load, which decreases 0.5% per year. How much will you pay in fees on a $11,400 investment that does not grow if you cash out after 3 years of no gain? Question 3Answer a. $570 b. $786 c. $115 d. $944

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