a) You want to receive $ 15 million in 30 years for a major purchase. If a financial institution offers 2. 125 % per year, how much should you invest (one time) today to make this happen?
a) You want to receive $ 15 million in 30 years for a major purchase. If a financial institution offers 2. 125 % per year, how much should you invest (one time) today to make this happen?
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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a) You want to receive $ 15 million in 30 years for a major purchase. If a financial institution offers 2. 125 % per year, how much should you invest (one time) today to make this happen?
b) You want to buy a house that currently costs $ 350,000. The bank requires 22% down and 12-year mortgage rates are around 4.02%. Ignoring other costs and expenses associated with the house, what would your quarterly payments be? Ignore tax and insurance payments.
How long wil it take you to multiply your money five hundred-fold if a bank offered you 5. 00% per year? Assume quarterly payments.
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