You've just invested $770,000 into Far Far Away Investments. This company promises to pay you and later all your future heirs a fixed amount of money once a year forever. The company earns a 5.7% annual return. How much should you expect you and all your future heirs to receive annually?
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You've just invested $770,000 into Far Far Away Investments. This company promises to pay you and later all your future heirs a fixed amount of money once a year forever. The company earns a 5.7% annual return. How much should you expect you and all your future heirs to receive annually?
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- You just paid $570,000 for an annuity that will pay you and your heirs $14,000 a year forever. What rate of return are you earning on this policy?Your goal is to retire 30 years from now and have investments worth $2.5 million at that time. Today, you have $211 in your investment account and plan on adding an additional $ 10,000 to that account each year. What annual rate of return must you earn on average to achieve your goal?If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to be able to withdraw $2000 every year forever? Assume the 8% per year is a return that you can depend on forever.
- You would like to provide $145,000 a year forever for your heirs. How much money must you deposit today to fund this goal if you can earn a guaranteed 5.8 percent rate of return?You believe you will need to have saved $593,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $113,000 in 5 years. 1) If the interest rate is 7% per year, what is the future value of your inheritance at retirement? 2) How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?You plan to invest $2,000 per year into a retirement account. If you earn a compound annual rate of return of 5%, how many years will it take you to reach a balance of $500,000?
- You have just deposited $12,000 into an account that promises to pay you an annual interest rate of 6.7 percent each year for the next 8 years. You will leave the money invested in the account and 20 years from today, you need to have $44,950 in the account. What annual interest rate must you earn over the last 12 years to accomplish this goal?You want to have $2,000,000 in net worth when you retire. To achieve this goal, you plan to invest $1,000 each year (starting one year from now) into an account of time that earns 10% interest rate compounded annually. The amount of time you can retire as a multimillionaire is how many years? 31.94 (32 years) 55.64 (56 years) 25.56 (26 years) 20.36 (20 years) detailed answer without the usage of excelYou invest $2000 today at 7% per year. If you leave thisfor your grandchildren by not touching the account for80 years, what is the amount of interest on interestearned for this investment? Please explain how to do this problem in the financial calculator. The most important thing is that I understand how to solve the problem on my own
- JAX, Inc. has been offered the opportunity of investing $177,604 now. The investment will earn 7% per year and at the end of its life will return $400,000 to JAX.. How many years must JAX wait to receive the $400,000?You are hoping to buy a house in the future and recently received an inheritance of $16, 000. You intend to use your inheritance as a down payment on your house. a. If you put your inheritance in an account that earns 8 percent interest compounded annually, how many years will it be before your inheritance grows to $33, 000? b. If you let your money grow for 9.5 years at 8 percent, how much will you have? c. How long will it take your money to grow to $33, 000 if you move it into an account that pays 3 percent compounded annually? How long will it take your money to grow to $33, 000 if you move it into an account that pays 12 percent? d. What does all this tell you about the relationship among interest rates, time, and future sums?You believe you will need to have saved $480,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $115,000 in 5 years. a) If the interest rate is 6% per year, what is the future value of your inheritance at retirement? b) How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?
