Table of Future Value Annuity Factors 5% 8% 1.000 1.000 1.000 5.204 5.526 5.867 10.950 12.578 14.487 60.401 120.797 259.052 Year 2% 1 5 10 40 10% 1.000 6.105 15.937 442.580 If he invests the $10,000 today, the terminal value of this initial investment in 40 years (earning an average 10% return) will be s This means that he must accumulate the remaining s through his annual savings plan to obtain the full $600,000. Still assuming an average return on investment of 10%, the additional yearly investment required to reach Ralph's targeted financial goal within 40 years Suppose instead that Ralph had no capital saved and thus needed to accumulate the entire $600,000 in the next 40 years. In this case, his annual contribution would have to be When Ralph starts with an initial investment of $10,000, the total amount that he ends up contributing to accumulate $600,000 is equal to the initial investment plus the additional yearly payments, for a total of When he starts with no initial capital contribution, the amount he ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of Once Ralph has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an investment plan. True or False: The appropriate investment plan depends only on the total amount of money he intends to save, not on the investment objective. O True O False

6., 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 employees

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3. What is the NAV?

Define cardinality.

What about D-J?