Investing In My Future
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Investing in My Future
By Ymontiara Corrin Jones
FIN100: Principles of Finance
Professor CC Anthony
June 12, 2022
Summary
New financial goals for the future upon what I learned from this course would be
to give my money a job. Creating that plan on how I need to spend money would be a
more frequent achievement throughout the year. Take care of your monthly bills and have
that separate flow of money for your future by using them for future investments outside
your traditional 401K retirement plans. Yes, I want to become more liquid to start my
own business. A liquid investment converted into cash without any impact on its value;
the goal would be to create another stream of income to then turn around and invest in
my entire plan apart from my financial future. This course has increased my knowledge
and added to the minimal knowledge I attained before taking this class.
2
Investing in My Future:
Investing in your future is a great way to start your journey to financial freedom.
By taking this course, I was about to understand more in-depth how it is essential to
understand finance. By being financially free and having enough savings, investments,
and cash on hand, you can be stress-free without checking on bills to make sure you can
make the due date. I want to view my financial lifestyle as a very diverse portfolio.
Taking this course has sharpened my financial literacy tremendously, and below I am
going to inform you in what ways.
Three (3) Ways I will Invest in My Future
There are many ways I can invest in my future, and the main thing I am doing to
contribute to this goal would be to go to and complete my degree. Investing in my
education and gaining knowledge about several topics will make me more eye-appealing
to my competitors and will benefit my overall gross income. Starting a retirement fund by
investing in my 401K with my job, not only is it beneficial because you are setting aside
money for your exit plan, but many companies match dollar for dollar if you invest a
specific amount. Setting your financial goals for the future will help you measure your
success by achieving them. Goals do not have to be years out it can be things like saving
a vacation or something long-term like paying off student loans. Lastly, I would like to
save for a rainy day. Unexpected expenses like a car repair or replacing a cracked phone
screen that I would be able to do so with no problems.
My Confidence Concerning Investing in My Future
Since taking this financial course, I feel more confident in investing in my 401K
plan. I enrolled in my 401k before taking this course, and I feel more confident investing
3
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Related Questions
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Assume that you are 22 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, 2064, when you are 64 years old. There are 23 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 in each year from 2022 to 2064. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings.
Â
You invest $350 at the end of each month into a retirement account paying 8.75% compounded monthly for 15 years starting on January 1, 2042. After 15 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:
Â
Assuming no withdrawals or additional payments were made, how much…
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QUESTION 9
Create a spreadsheet for the scenario described below and submit it as your answer to this question. You will then use the
spreadsheet you created to answer questions #10-12.
Right now, Raelynn has $28,575 in her IRA (retirement account).
She plans to make deposits to this account of $2,000 per year for the next 10 years, and then $3,500 per year for the fifteen
years after that, and beyond that no further payments,
Create a spreadsheet to find the future value of her IRA 40 years from now, assuming she earns 8.25%.
Attach File
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Please answer question 9 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…
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Time Value of Money Calculations
 q12
Today Dante and Sharon had their first child. All of the grandparents gave them money to help out, which added up to $23,000, and they are going to put this money into an education fund for their child’s future. They are nervous about the stock market so they’ve decided to put their money in a GIC which earns an interest rate of 2.6%, compounded monthly.
How much money will they have in the account by their child’s 18th birthday?Â
How much interest will be earned?
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Case A - You have decided to start planning for your retirement. You already have $11,000
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BEGINNING of each of the following 30 years. Your account is expected to grow at 6.5%
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Prepare a schedule to show (1.) the year (1 through 40), (2.) the beginning balance each
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ending balance each year.
Format each of the dollar amounts with two decimals.
Please include totals at the bottom of your spreadsheet for (1) the amount of interest and (2)
the amount of deposits during the entire 40 year (10 + 30) year time.
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Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year
period…
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STRATEGY 2: SAVINGS EARLY PLAN
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Â
You invest $350 at the end of each month into a retirement account paying 8.75% compounded monthly for 15 years starting on January 1, 2022. After 15 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:
Â
Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 15 years?
After 15 years, how many years are left until you retire?…
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Problem 4
FUTURE VALUE OF AN ANNUITY. Your client is 40 years old; and she wants to begin
saving for retirement, with the first payment to come one year from now. She can save
$5,000 per year; and you advise her to invest it in the stock market, which you expect to
provide an average return of 9% in the future.
a. If she follows your advice, how much money will she have at 65?
b. How much will she have at 70?
c. She expects to live for20 years if she retires at 65 and for 15 years if she retires at 70.
If her investments continue to earn the same rate, how much will she be able to
withdraw at the end of each year after retirement at each retirement age?
Problem 5
FYALUATING LUMP SUMS AND ANNUITIES, Crissie just won the lottery, and she mus
lumn sum today of $6
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(Click on the
into a spreadsheet.)
Annuity
B
C
Premium paid today
$24.098.32
$22,274.30
$31,240.13
$30,150.95
Annual benefit
$3,200
$4100
$4,000
$4,200
Life (years)
20
10
15
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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…
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Please answer question 1 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.
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Multiple Choice
Assume you are investing $100 today in a savings account. Which one of the following terms refers to the total value
of this investment one year from now?
о
O
O
Future value
Present value
Principal amount
Discounted value
Invested principal
5
Saved
Help Save & Exit
8
Submit
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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? $
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Financial Mathematics Question
You currently have $20,000 saved for
retirement and can afford to put aside
$5,000 per year (end of year). You
would like to have $300,000 saved
when you retire in 20 years.
a) Will you have enough money
assuming an 8% annual return?.
b) Using a 5% annual return, how much
money will you have? What amount
would you need to put away
each year to achieve your goal?
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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
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Select one:
a. 4.12
b. 3.14
c. 5.16
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Please turn to page 152 of the text and complete Financial Problem 14.
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Practice 1
Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65 (she will retire on her 65th birthday). She would like to be able to withdraw $80,000 from her savings account on each birthday for 20 years following her retirement (the first withdrawal will be on her 66th birthday). Your friend intends to invest her money in the local savings bank which offers 4% p.a. compound semi-annually. She wants to make equal annual deposits on each birthday in a new savings account she will establish for her retirement fund. If she starts making these deposits TODAY and continues to make deposits until she is 65 (the last deposit will be on her 65th birthday), what amount must she deposit annually to be able to make the desired withdrawals upon retirement?
Any intermediate steps should be rounded to 4 or more decimal places.
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Question 13
You have a 401(k) plan, which is used for retirement savings, at work. If you plan to
invest $5,000 at the end of every year for 35 years until you retire, which formula
would you use to determine how much you will have when you retire?
O future value of an annuity due
O present value of a lump-sum
future value of an ordinary annuity
present value of an ordinary annuity
future value of a lump-sum
Question 14
You deposit $3,250 into a savings account at a local bank. It will pay you 1.25%
compounded monthly for 2 years. To determine how much you will have at the end
of that time, which formula would you use?
future value of an annuity due
O future value of a lump sum
O present value of a lump-sum
future value of an ordinary annuity
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9 Six months after graduation from college, Jennifer
decided to start a savings account for graduate school.
She researched her investment options and found the
three options below.
Option 1 2.99% APR
Option 2
3.00% APR
Option 3
3.01% APR
compounded monthly
compounded quarterly
compounded semi-annually
Make a recommendation on the option she should
choose. Be prepared to explain your reasoning.
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Question 11
You deposit $5000 each year into your retirement account, starting in one year. If
these funds earn an average of 5% per year over the 27 years until your retirement,
what will be the value of your retirement account upon retirement?
Your Answer:
Answer
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ok
t
nces
Your friend Amber has approached you seeking advice concerning two investment opportunities that she is presently
considering. Her classmate Simone has asked her for a loan of $500 to help establish a small business; her neighbor Riley would
like to borrow $515 as a personal loan. One year from now, Amber's original investment will be returned in either case, along with
$45 of income from Simone or $48 of income from Riley. Amber can make only one investment.
Required:
a. 1. Compute the ROI of Simone and Riley.
2. Which investment would you advise Amber to make?
b. What other factors should you advise Amber to consider before making either investment?
Complete this question by entering your answers in the tabs below.
Req A1
Req A2 and B
Compute the ROI of Simone and Riley.
Note: Round your answers to 2 decimal places.
Simone
Riley
ROI
%
%
Show less A
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A Question 11
You deposit $5000 each year into your retirement account, starting in one year. If
these funds earn an average of 5% per year over the 27 years until your retirement,
what will be the value of your retirement account upon retirement?
Your Answer:
Answer
Hide hint for Question 11
NOTICE THAT THE ONLINE FINANCIAL CALCULATOR HAS THE BUTTON FOR
PAYMENTS MADE AT THE END OF THE PERIOD. THIS IS THE DEFAULT OF THE
CALCULATOR, AND THE WORDS 'STARTING IN ONE YEAR' ARE JUST
CONFIRMATION THAT YOU WANT THAT END OF THE PERIOD BUTTON
SELECTED.
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eBook
Chapter 14Financial Planning Exercise 2Calculating amount available at retirement
Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $2,000 per year for her retirement fund and assumes that she'll retire at age 65.
Â
How much will Molly have accumulated when she turns 65 if she invests in equities and earns 10 percent on average? Round your answer to the nearest dollar.$ Â
Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 35. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar.Nest egg amount at 6% = $  Nest egg amount at 10% = $  Comment on your findings.
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CHAPTER 5
Time Value of Money
203
Personal Finance Problem
22 Retirement planning Hal Thomas, a 25-year-old college graduate, wishes to retire
at age 65. To supplement other sources of retirement income, he can deposit $2,000
each year into a tax-deferred individual retirement arrangement (IRA). The IRA will
earn a 10% return over the next 40 years.
a. If Hal makes annual end-of-year $2,000 deposits into the IRA, how much will he
have accumulated by the end of his sixty-fiftheyear?
b.
Personal Finance Problem.
5-23 Value of a retirement annuity
Hal decides to wait until age 3.5 to begin making annual end-of-year $2.000
deposits into the IRA, how much will he have accumulated by the end of his
c. Using your findings in parts a and b, discuss the impact of delaying making
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by the end of Hal's sixty-fifth year.
d. Rework parts a, b, and e, assuming that Hal makes all deposits at the beginning.
c,
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Homework #4 Investments
Question 1 of 10
View Policies
Current Attempt in Progress
-/10 ==
You need to accumulate $92000 for your child's college education 19 years from now. How much do you need to save each year if you
can earn 4 percent after taxes on your investment, assuming that you will make annual end-of-year payments into the account?
O $2461.28
$3324.75
O $3012.54
O $2725.12
eTextbook and Media
Save for Later
GON
A
Attempts: 0 of 2 used Submit Answer
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Excel Online Activity: Required annuity payments 1
Question 1
0/10
Submit
HVideo
Excel Online Structured Activity: Required annuity payments
Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income
that has the same purchasing power at the time he retires as $60,000 has today. (The real value of his retirement income will decline annually after he
retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual
inflation is expected to be 4%. He currently has $70,000 saved, and he expects to earn 9% annually on his savings. The data has been collected in the
Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
Qoen spreadsheet
How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do…
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the concept "pay yourself first". With this in mind, what is your advice to someone on paying off credit card debt and investing for their retirement? Do you feel as though they should pay off all credit card debt before investing for their retirement or is it best to start investing for retirement as soon as possible? Why? * 350 word minimum
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if you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertiseif you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertise
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Time to accumulate a given sum Personal Finance Problem Manuel Rios wishes to determine how long it will take an initial deposit of $7,000 to double.
a. If Manuel earns 8% annual interest on the deposit, how long will it take for him to double his money?
b. How long will it take if he earns only 5% annual interest?
c. How long will it take if he can earn 10% annual interest?
d. Reviewing your findings in parts a, b, and c, indicate what relationship exists between the interest rate and the amount of time it will take Manuel to double his money.
a. If Manuel earns 8% annual interest, the amount of time to double his money is
years. (Round to two decimal places.)
C
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ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning