our years of employment, John was able to save P250,000 after he had invested on purchasing a motorcycle and a life insurance. He is now considering the different investment opportunities to start accumulating wealth. In 10 years from now, John expects to start spending for his child’s education, what type of financial instrument should he invest and why?

To capitalize on all the money he earned as a teenager, Justin has $500,000 that he wants to invest into an account a.) How much money does Justin have after 10 years if the account earns 5% interest compounded continuously? b.) How long will it take for Justin's money to grow to 2,000,000?

When Steven was 5 years old (on his birthday), his grandmother decided to set up a trust account to pay for his college education. She wanted the account to grow to $100,000 by his 18th birthday. If she was able to invest her money at 7% per year, how much did she have to deposit into this trust account? (Note: The amount deposited is known as the present value of the investment. The $100,000 is known as the future value. Round your answer to the nearest cent.)

Today, Jeff has $350,000 in his savings and Patrick has $875,000. Patrick will not make any more deposits over the next 10 years, but he will earn 7% per year on his current savings. Jeff plans to deposit $8,000 per year into his savings for the next 10 years. He also wants to seek out a higher return for his savings so that he will have the same amount of money as Patrick will 10 years from now. What rate of return will Jeff have to earn over the next 10 years in order to catch up with Patrick? 16.05% 22.09% 19.22% O 17.44%

Brad is working with a financial planner and is confident that he can invest in mutual funds that will average 10% annual returns. If he wants to retire after 40 years with $2 million in his retirement account, how much does Brad need to deposit at the end of each of the 40 years?

James invests $20,000 on his 25th birthday and plans to add $2,000 to his investment each year until his 40th birthday. The interest rate is 5.5% compounded annually. a) What will be the value of Clark's investment on his 40th birthday? b) How much will his investment have earned by his 40th birthday?

Loni buys a machine for her business. The machine costs $280,000. Loni estimates that the machine can produce a $64,000 cash inflow per year for the next 9 years. Loni's cost of capital is 7 percent. What is the approximate present value of the cash flow benefits for Loni?

Guyton and Jessica have a new grandson. How much money should they invest now so that he will have $79,000 for his college education in 18 years? The money is invested at 4.1% compounded quarterly.

Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Ryan inherited an annuity worth $3,280.16 from his uncle. The annuity will pay him five equal payments of $800 at the end of each year. The annuity fund is offering a return of    .   Ryan’s friend, Sebastian, wants to go to business school. While his father will share some of the expenses, Sebastian still needs to put in the rest on his own. But Sebastian has no money saved for it yet. According to his calculations, it will cost him $30,044 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $4,200 at the end of every year in a mutual fund, from which he expects to earn a fixed 7% rate of return. It will take approximately    for Sebastian to save enough money to go to business school.

Jamal wants to save $55,000 for a down payment on a home. How much will he need to invest in an account with 8 APR, compounding daily, in order to reach his goal in 5 years?