Assume an investor wishes to have £80,000 ten years from now as a retirement fund. How much money would have to be invested today at 6 percent compound interest? Group of answer choices £4,800 £8,000 £44,673 £54,0000
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- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
- 8) Special Retirement PlanYou set up a retirement plan where you will invest $20,000 per year in an account with a guaranteed rate of return of ? = 0.05. The plan requires that you start investing immediately at year t=0, and make fifteen (15) additional payments of $20,000 in years t=1, t=2, ..., t=10. You make 11 investments in total. a. What will be the value of this stream of investments in year t=50? b. What is the maximum you can withdraw per year over the twenty (20) year period from t=51, t=52, ..., t=70? You have to withdraw the same amount each year. c. What is the maximum that you can withdraw per year forever if you start to make withdrawals in year t=51. You have to withdraw the same amount each year. 19)You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Identify variables and use excelYour investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment? Group of answer choices $201,000 $175,590 $225,682 $ 49,179 $250,000
- answer The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $36,000 per year forever. If the required return on this investment is 5.8 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) present value is?How much will you pay for an investment if you expect to receive $3,500 end of each year in perpetuity and if the appropriate interest rate is 5%? $50.000.00 $60,000.00 $300,000.00 O $150,000.00 $70,000.00 O $350,000.00 O $200,000.00 Cannot compute. Not enough informationK Sarah Wiggum would like to make a single investment and have $2.4 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 3 percent annually How much will Sarah have to invest today? Sarah invests that amount and could eam a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $2.4 million? Click on the table icon to view the PVIF table 4 To have $2.4 million at retirement, the amount Sarah must invest today is 5 (Round to the nearest cent) If Sarah invests that same amount and earn a 13% annual return, she could retire in approximately years (Round to one decimal place)
- 27. If the discount rate is 7%, what is the present value, to the nearest dollar, of an investment that will pay you and you heirs $11,000 per year forever? A) $ 38,881 B. $ 86,200 C. $103,050 D. $157,143 E. $587,955 1111You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Must identify variables and use excelNow 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%