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- You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need to invest today to meet your objective?What is the present value of receiving $4,000 per year for 10 years? Your annual required rate of return is 10%.If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and $2,000 each in year 4 and year 5. If you require a 10% annual return, should you take the investment.
- If you would like to have $20,000 in 5 years, how much should you invest today if your investment earns 12% per year and compounded annually?You want to buy a house within 3 years, and you are currentlysaving for the down payment. You plan to save $9,000 at the end of the first year,and you anticipate that your annual savings will increase by 5% annually thereafter. Yourexpected annual return is 8%. How much will you have for a down payment at the endof Year 3?You have 30 years left until retirement and want to retire with $1.5 million. Your salary is paid annually, and will receive $70,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn an 10 percent return on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?
- Your investment advisor wants you to purchase an annuity that will pay you $35,000 per year for 10 years. If you require a 9% return, what is the most you should pay for this investment?You want to invest $100.00 for three years at 10%. What will the $100 dollars grow to?You have already saved $20,000. Suppose you continue to make contributions of $750 at the beginning of each month for the next 15 years. You have a goal of having $200,000. 1) What monthly nominal rate of return must his investment earn for him to achieve his goal? 2) If the best rate in the market he can find is a 10% monthly nominal rate, what would be the new amount for the contributions he will have to make to still achieve his goal of having $150,000 in 10 years?
- You plan to save $250 a month for the next 24 years and hope to earn an average rate of return of 10.6 percent. How much more will you have at the end of the 24 years if you invest your money at the beginning rather than the end of each month?Suppose you plan to deposit $1000 into an account next year, and increase the deposit each year by 5%. How how much will you have in the account after 10 years if the account earns an effective annual return of 9.25%?You want to accumulate $1,250,000 prior to retirement. If you can earn 10% per yr. and have the next 30 years to save every month, how much would you need to save at the beginning of every month to fulfill your wishes?
