2. A retired women has 30,000 to invest but needs to make 5,000 a year fromthe intrest to meet certain living expenses. One bond investment pays 5%annual intrest. The rest of it she wants to put in a CD that pays 2%. Howmuch was invested in each account

Answered: Image /qna-images/answer/02889937-8269-4599-8df2-de550980ae07.jpg

Answered: 2. A retired women has 30,000 to invest…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 8E

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How much money does Suzie need to have in her retirement savings account today if she wishes to withdraw $25,000 a year for 3 years? She expects to earn an average rate of return of 13 percent. A. $59,028.81 OB. $65,419.81 OC. $71,533.33 OD. $85,160.98 E. $87,391.34
3. A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 6 percent on this savings. a. How much will she have accumulated if she retires at age 65?
0. Tammy is saving up money for an emergency fund. She hopes to have 4 months' worth of income accumulated, and she takes home $2500 a month. She plans on depositing monthly increments for the next year and a half into a sinking fund which earns 8% Interest, How much should each deposit be?
6. If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need to deposit each year for these 7 years? Assume that your money will earn 10 percent per year. 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average earning of 11 percent over the 40 years until her retirement, what will be the value of her retirement account?
3. Jaylin makes a 25-year loan of 150,000 to Susan. Susan needs to repay this loan by level end of year payments R. Jaylin will replace her capital via a savings account which offers annual effective interest rate 6% and earn an APY of 4%. Find R.
Determine whether each scenario below is a savings/investments question or a loans question. 1. Sabrina finances a $21,999 car at 4.25% APR over 5 years. If she makes a down payment for $5,000, how much will she end up paying in interest for the car? 2. Alejandro deposits $1,500 into an investment account with an APR of 2.25% compounded monthly. How much does Alejandro need to put into his account each month in order to have $5,000 in 3 years to purchase a car in cash? 3. Amy wants to buy a house for $150,000. She doesn't have enough yet for a 20% down payment. If she puts $2,000 into the account now and $500 every month, how long will it take for her to have enough for a 20% down payment to buy this house? 4. Arnie paid $500 for his $1,200 laptop. If he finances the rest at 6.75% over 24 months, how much money will he end up paying in total for this laptop?
Elizabeth has $31,209.00 in an investment account. Her goal is to have the account grow to $118,806.00 in 15 years without having to make any additional contributions to the account. What effective annual rate of interest would she need to earn on the account in order to meet her goal? O 10.32% 10.82% O 9.32% O 9.82% O 11.32%
PLEASE DO ALL PARTS OF THE QUESTION / PROBLEM
1. If you want to have $500,000 when you retire and you put $85,000 in your retirement account right now, and you can get an interest rate of 5.2% a year, how many years will it take you to achieve your goal? 2. Sammy decides to set up a retirement fund. He deposits $7,000 a year. He earns an annual interest rate of 4.5. How much will Sammy have in his retirement fund in 25 years? 3. Sammy wants to see what his retirement fund would be if he made $7,000 deposits at the first of every year instead of at the end. How much will Sammy have im his retirement fund in 25 years at the rate of 4.5% if the deposits are made at the beginning of the year? 4. Sammy wants to help a fellow small business owner. The other owner, Mr. Noles offers to pay Sammy $4,250 a year for 8 years in exchange for a loan of $28,000. If the interest rate is 4.2%, is this a good investment for Sammy? What is the present value of this annuity?
Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years? Multiple Choice O O $562.67 $602.86 $643.06 $416.79
Michelle Payne deposited $16,000 in a savings account paying 6.25% simple interest. How long (in years) will it take for her investment to amount to $28,000? years Need Help? Read It
a couple has 25,000 in their retirement savings today. How many years do they have to save at 6%, putting in 1,000 at the begining of each year to achieve 80,000

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2. A retired women has 30,000 to invest but needs to make 5,000 a year from the intrest to meet certain living expenses. One bond investment pays 5% annual intrest. The rest of it she wants to put in a CD that pays 2%. How much was invested in each account