M3 -Discussion 2

Business 123 Introduction to Investments May I please have the solution for the following exercise? Thank you,   Just when you thought you had cured your colleague of his belief in "too good to be true" schemes, he comes in all excited about Bitcoin. He saw someone on television saying that Bitcoin was going to go to $1,000,000 and then he read an article on the Internet where someone else said that eventually each Bitcoin will be worth $13,000,000 just because. He can't wait to get in. This time, he does not ask for your opinion. He tells you that he is going to get started immediately and that you need to get started, too. He leaves your office enthusiastically. Please comment on what you know and believe about Bitcoin and other cryptocurrencies as an investment.

Question 33

RISK & RETURN AND PAYOFF TABLES TUTORIAL QUESTION 1 Mr. Nel, an entrepreneur who is currently 55 years old, took early retirement from his business which he had started 30 years ago. He still wants to be involved in investments to keep his mind occupied while on “permanent” holiday. While thinking about investment opportunities, he realised that one of his most consistent expenses is his cell phone bill. He has a MTN and a separate VODACOM contract which he pays monthly. He thought to himself, “Why not invest in the company that I am contributing to on a monthly basis.” He decided to conduct research on the two entities in order to assist him with his investment decision. The following information was gathered regarding the two companies: VODACOM Vodacom is a leading African communications group providing mobile communications and related services to 40.4 million customers. Its mobile network covers calls to a total population of approximately 182 million people across five…

Business 123 Introduction to Investment May I please have the solution for the following exercise? Thank you,   Just when you thought you had cured your colleague of his belief in "too good to be true" schemes, he comes in all excited about Bitcoin. He saw someone on television saying that Bitcoin was going to go to $1,000,000 and then he read an article on the Internet where someone else said that eventually each Bitcoin will be worth $13,000,000 just because. He can't wait to get in. This time, he does not ask for your opinion. He tells you that he is going to get started immediately and that you need to get started, too. He leaves your office enthusiastically. Please comment on what you know and believe about Bitcoin and other cryptocurrencies as an investment.

Please answer question 8 after reading the scenario thank you. Question at the endStephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie's research has…

Business 123 Introduction to Investment May I please have the solution for the following question? With S&P 500 Index fund, Long-term mutual fund, Global Mutual fund, and European mutual fund as my disposal choices. Thank you,

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IM 00 96 %24 LLI 3 DECISION TIME – LUMP SUM OR PAYMENTS TAT Would you rather take a lump sum of $372 million or 30 annual payments of $25 million if the current interest rate is 6%? • Use the present value equation to calculate the present value of the $750 million in 30 annual installments, given the interest rate of 6% to answer this question. = Ad (? + I) I=} 91 6) 12 A 11) 114 prt sc 144 delete home end an 6d 4. -> backspace lock home H. enter pause 1 shift pue alt ctrl SU

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Hi good morning the previous questions have been completed by you all. Please answer question 6 & 7 after reading the scenario thank you. Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes…

39 STRATEGY 2: SAVING LATER PLAN Assume that you are 23 years old but decide to wait before saving for retirement. You decide to start saving later when you are 42 years old. As a result, you start saving on January 1, 2042. You plan to retire on December 31, 2067, when you are 68 years old. There are 26 years from the time you started investing (saving) until you retire. When you start investing in 2042, you have no previous or other retirement savings. Assume there are 365 days and 52 weeks in each year from 2042 to 2067. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings. You invest $125 at the end of each week into a retirement account paying 7.5% compounded weekly for 12 years starting on January 1, 2042. After 12 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions: 1. Assuming no withdrawals or additional payments were made,…

Rework problem 17 in section 2 of Chapter 5 of your textbook about the lottery winner who is going to invest in utility bonds and a savings account using the following data: Assume that her total winnings are $ 400000, that the utility bonds will pay 16 percent per year, and that the savings account will pay 4 percent per year. What will be her total yearly income from these investments? $

Problem 5.26 You have just inherited $560,000. You plan to save this money and continue to live off the money that you are earning in your current job. If the $560,000 is everything that you have other than an old car and some beat-up furniture, and you can invest the money in a bond that pays 4.5 percent interest annually, how long will it be before you are a millionaire? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answver to two decimal places, e.g. 8.72%.) Number of years Click if you would like to Show Work for this question: Open Show Work

Question 11

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Chapter 11, Question 1

Please answer question 4 & 5 after reading the scenario thank you. Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…

You have $100,000 in your savings account and plan to retire with $750,000 in the bank in 40 years. You are hoping to achieve areasonable rate of return on your investments and want to know the target rate you should be looking for. Select one: a. 4.12 b. 3.14 c. 5.16 d. 6.13

Please answer question 10 in derail showing computation after reading the scenario thank you. Question at the endStephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.…

Please answer question 2 & 3 after reading the scenario thank you. Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…

Question 2 You want to have a million dollars in the bank when you retire. You think you can save $5 000 this year, and increase that by 2% every subsequent year, in a bank that offers you 5% interest. If you make your first deposit in a year's time, how many years will it be from now before you can retire? 41 42 43 44 45 t