Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- When you retire, you wish to have $1 million in your retirement account. Currently, you have $100,000 in the account. If you can generate an annualized return of 12% from your investment, compounded monthly, how many years do you think it will take to have $1 million in the account? 11 years 231 years 19 years 53 yearsarrow_forwardInterest rate with annuity. What are you getting in terms of interest rate if you are willing to pay $10,000 today for an annual stream of payments of $2,100 for the next 25 years? The next 50 years? The next 125 years? Forever?arrow_forward4. If you deposit $4,500 at the end of each of the next 30 years into an account paying 7.9 percent interest, how much money will you have in the account in 30 years? How much will you have if you make deposits for 40 years?arrow_forward
- How much should you invest each month in order to have $300,000 if your rate of return is 5.6% compounded monthly and you want to achieve your goal in 40 years? $ How much interest will you earn? $ How much should you invest each month in order to have $300,000 if you want to achieve your goal in 20 years? $ If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years? $ esarrow_forwardYou wish to have 1 million saved for retirement. You are now 35 years old. How much do you need to save each month @ 12% annually to retire by age 65? How much total interest is earned?arrow_forwardHow much money should you deposit every year in your savings account starting 3 years from now at 7 3/4% per year for you to have $8000 ten years from now?arrow_forward
- Interest rate with annuity. What are you getting in terms of interest rate if you are willing to pay $10,000 today for an annual stream of payments of $2,300 for the next 10 years? The next 20 years? The next 50 years? Forever? What are you getting in terms of interest rate if you are willing to pay $10,000 today for an annual stream of payments of $2,300 for the next 10 years? nothing% (Round to two decimal places.) What are you getting in terms of interest rate if you are willing to pay $10,000 today for an annual stream of payments of $2,300 for the next 20 years? nothing% (Round to two decimal places.) What are you getting in terms of interest rate if you are willing to pay $10,000 today for an annual stream of payments of $2,300 for the next 50 years? nothing% (Round to two decimal places.) What are you getting in terms of interest rate if you are willing to pay $10,000 today for an annual stream of payments of $2,300 forever? nothing%…arrow_forwardCalculate the amount of money you would be saving for a month by no longer spending $10. Please show your work. If you were to retire at 65, find the number of years left for you to retire. Show calculations. If you were to invest the monthly savings (every month) in an account that gives you 7% interest compounded monthly, calculate the amount of money you would have in your retirement account (at age 65) by making this one change in your lifestyle. Show all the steps.arrow_forwardYou are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 7% per year on your investments and you plan to retire in 41 years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 27 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 27th withdrawal (assume your savings will continue to earn 7% in retirement)? d. If, instead, you decide to withdraw $70,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take…arrow_forward
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