Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You can invest $ 35,000 today. This investment offers you a fixed annual return, computed monthly for life of 13%, how much will be the monthly amount that you could withdraw monthly?
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- You purchase an investment for $1,000. You expect it will increase in value at a rate of 9% per year. If your expectations are correct, how much will your investment be worth at the end of 12 years? Your Answer:arrow_forwardYou are going to invest $5405 in 3 years and $7923 in 6 years. If you expect to earn a return of 8.26%, how much will you have in 10 years? Answer:arrow_forwardAn investor plans to invest $500 a year and expects to get a 10.5% return. If the investor makes these contributions at the end of the next 20 years, what is the present value of this investment today?arrow_forward
- You are looking at two investment options, A and B. Investment A is a 15-year annuity that needs an end-of-month payment of $1,100 and has an APR of 9% compounded monthly. Investment B is also a 15-year investment, but a lump sum investment that has as an APR of 8% compounded daily. How much money do you need to invest in B today as a single lump sum amount if you wish to have the same wealth as in Investment A in 15 years? If Investment B, with 8% APR compounded daily, gave you the option of investing a constant amount at the end of every six months, what would this amount be in order to give you the same wealth as in A at the end of 15 years?arrow_forwardAssuming an annual rate of return of 9.5% and depositing $3,000 at the end of every 6 months into your investment account, how much will you have after 30 years?arrow_forwardYou have $68,513 you want to invest. You are offered an investment plan that will pay you 4.58 percent per year for the first 20 years and 6.81 percent per year for the last 21 years. How much will you have (in $) at the end of the two periods? Answer to two decimals. < Previousarrow_forward
- You plan to invest $13223 into an investment that you hope will earn a return of 10.28 % . You will withdraw your money in 24 years. How much will you withdraw?arrow_forwardYou plan to invest $12,000 per year into a retirement account. If you earn a compound annual rate of return of 11%, how many years will it take you to reach a balance of $1,500,000? Question 2 options: 22.83 25.79 24.24 21.09 26.76arrow_forwardSuppose you wish to have $15,250 in 18 years. Use the present value formula to find out how much you should invest at 6% interest, compounded annually in order to have $15,250, 18 years from now.arrow_forward
- An investment offers $2,500 per year for 8 years, with the first payment occurring one year from now. If the required return is 12%, what is the value of the investment?arrow_forwardYou are going to retire in 40 years and currently have $100,000. What average annual return would you have to earn on your investment to have $1 million by the time you retire?arrow_forwardSuppose you plan to have $90,000 in 15 years from now and you can invest your savings at 2% compounded continuously. Assuming you can save the same amount of money each year, how much do you need to save on a yearly basis in order to achieve your goal? Hint: Treat your savings as an income stream. Yearly savings (exact value) = Yearly savings (rounded to the nearest cent) = Submit Answer dollars dollarsarrow_forward
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