Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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How long will it take to accumulate 3,200 to 4,800 if money is worth 6.5%?
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- You have $12789 to invest and want to save up $28191. You hope to earn a return of 10.1%. How long until you reach your goal? Answer:arrow_forward6., RST Company offers a qualified retirement plan. Each employee contributes 4 percent of his or her pretax income to the plan, and RST matches each employee's contribution. An employee's benefit at retirement is determined by his or her account balance at the time of retirement. What type of retirement plan does RST offer? a. Defined contribution plan. b. Defined benefit, flat percentage of annual earnings c. Defined benefit, unit-credit formula. d. Defined benefit, flat dollar amount for all employeesarrow_forwardDouble your money—Rule of 72. Approximately how long will it take to double your money if you get an annual return of 3.6%, 6.3%, or 9.1% on your investment?arrow_forward
- What amount of cash would result at the end of one year, if $15,000 is invested today and the rate of return is 8%? A) $16,200 B) $13,889 C) $15,000 D) $1,200arrow_forwardQUESTION 3 Discuss the meaning of "the present value of a future amount"? Give the general equation for present value? a. Farizal intends to buy a new car, the Myvi for RM57,650, but only has RM20,000 in cash. How many years will it take for RM20,000 to grow to RM57,650 if it is invested at 10% interest compounded annually? b. Wahida has decided to invest RM1,000 for two years in a savings account paying 6% interest compounded semi-annually. Compute the future value of Wahida's investment? C. d. Sharifah Aminah receives a mixed stream of cash flows from an investment over the next five years: Year Cash Flow (RM) 5,000 6,500 4,500 5,200 5,800 1 What is the initial amount that Sharifah Aminah should invest if the required return is 10%? 2345arrow_forwardHow long will it take for a some of money to double if it is invested at 5% interest compounded annually?arrow_forward
- You would like to have $29,753 in 7 years.. If the rate is 9.57%, how much do you have to invest each year? lo efarrow_forwardHow much would Roderick have after 6 years if he has $500 now and leaves it invested at 5.5% with annual compounding?arrow_forwardhow long would it take a $600 investment be worth $700 if compounded at 11% per yeararrow_forward
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