receives his first $121,890.95 payment in 3 years and his last $121,890.95 payment in 7 years, then what is the expected annual return for his account? O 5.68% (plus or minus 1 bps) O 16.32% (plus or minus 1 bps) O 8.86% (plus or minus 1 bps) O 10.84% (plus or minus 1 bps) O none of the answers are within 1 bps of the correct answer

receives his first $121,890.95 payment in 3 years and his last $121,890.95 payment in 7 years, then what is the expected annual return for his account? O 5.68% (plus or minus 1 bps) O 16.32% (plus or minus 1 bps) O 8.86% (plus or minus 1 bps) O 10.84% (plus or minus 1 bps) O none of the answers are within 1 bps of the correct answer

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

See similar textbooks

Similar questions

C. Fred is planning on retiring this year. How much must his retirement account have in it this year in order to make a $40,000 payment each year for the next 30 years to meet his needs assuming that the appropriate interest rate is 8%?*
Peter intends to retire in 5 years. To supplement his pension he would like to receive $150 every months for 20 years. If he is to receive the first payment a month after his retirement and interest is 4.2% p.a. compounded monthly, how much must he invest today to achieve his goal?
Josh invests P500 per quarter for his retirement at 7.3% compounding quarterly for 32 years. He has a choice of making that payment of P500 at the beginning or the end of the quarter (regular annuity or annuity due). In which account will he have more money and by how much?
Starling wants to retire with $2, 110,000 in his retirement account exactly 41 years from today. He will make annual deposits at the end of each year to fund his retirement account. If he can earn 9.73 percent per year, how much must he deposit each year? ** PLS EXPLAIN HOW TO SOLVE USING A FINANCIAL CALCULATOR
Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?
Jake plans to contribute $3600 at the end of each year to his IRA. If he earns a return of 8.5% annually, how much will he have in 42 years? $30,600 $1,260,612 $1,285,200 $151,200 $164,052
Starting on the day he retires, Bob wants to receive payments of $10,000 at the beginning of each quarter for 20 years. How much money should he deposit each quarter starting today if he plans to retire in 35 years and he makes his last deposit 5.25 years (i.e., 5 years and 3 months) before his retirement date? Assume that the account earns a nominal rate of 7% per year compounded quarterly for the first 35 years and then a nominal rate of 5% per year compounded quarterly thereafter. Round to 2 decimal places.
Andrew would like a retirement income of $3,000 per month (beginning of month payments) for 19 years once he retires. How much must he have in his retirement account on the day he retires if the account can earn 3.6% compounded monthly? Your Answer: Answer
You plan to make your first $6,470 contribution to your individual retirement account in 2 years. Assuming you earn a 7.02 percent rate of return and make no additional contributions, what will your account be worth (in $) when you retire 50 years from now?
Don Harrison's current salary is $60,000 peryear, and he is planning to retire 25 years fromnow. He anticipates that his annual salary willincrease by $3,000 each year (i.e., in the firstyear he will earn $60.000, in the second year$63.000. in the third year $66.000, and so forth),and he plans to deposit 5% of his yearly sala:into a retirement fund that earns 7% interscompounded daily. What will be the amount acumulated at the time of his retirement'?
I plan to deposit $348 into my retirement every year for the next 25 years. The first deposit will be made today (that is, at t = 0) and the last deposit will be made at the end of year 24 (that is, at t = 24). I plan to make no other deposits. Assuming that I will earn 8.51% p.a. on my retirement funds, how much money will I have accumulated 36 years from today (that is, at t = 36)? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Your Answer: Answer
Leonard wants to have $400,000 in his RRSP when he retires in 31 years. How much must he deposit at the end of each month into the RRSP in order to reach his goal? Assume that he can earn j12=4.8% on his money. Your Answer: Answer