Only qno2 ,÷needddddddd okkkk PART IIShow your excel workings for the following problems. Round up to two decimal places if necessary.1. Sarah would like to make a single investment and have 125 million at the time of her retirement in 11years. She has found a mutual fund that will earn 10 percent semi-annually. How much will Sarah have toinvest today? What if Sarah is a finance major and learns how to earn a 15 percent annual return - howsoon could she then retire?2. Freilyn Angob, a Filipina working in the UAE, has won in an Emirates Lotto Draw where she will receivePhp 387,000 a month for 25 years. If she decides to save 50% of those earnings every year and put intoan account that pays 8% interest, how much will her savings be after 25 years?3. How risky is your portfolio if you have invested 50% to security 1 and 50% to security 2?What if based on your research, the risk will be minimized if you changed the composition of your portfolioto be 20% of security 1 and the rest to security 2. Is your analysis correct?State of Nature12345Probability0.350.150.100.100.30Return, Security 1-20%15254560Return, Security 210%-13-520254. Consider a $1,000 par value bond issued by ACEN with a maturity date of 2045 and a stated coupon rateof 8.5 percent that pays interest on an annual basis. On January 1, 2023, the bond had 23 years left tomaturity, and the market's required yield to maturity for similarly rated debt was 7.5 percent. What is thevalue of the bond?5. Consider the valuation of a share of common stock that paid a $2 dividend at the end of last year and isexpected to pay a cash dividend every year from now to infinity. Each year the dividends are expected togrow at a rate of 10 percent. Based on an assessment of the riskiness of the common stock, the investor'srequired rate of return is 15 percent. What is the value of this common stock?

The future value of an investment forecasts the expected value of an investment at a given future…

2. Freilyn Angob, a Filipina working in the UAE, has won in an Emirates Lotto Draw where she will receive Php 387,000 a month for 25 years. If she decides to save 50% of those earnings every year and put into an account that pays 8% interest, how much will her savings be after 25 years?

2. Freilyn Angob, a Filipina working in the UAE, has won in an Emirates Lotto Draw where she will receive Php 387,000 a month for 25 years. If she decides to save 50% of those earnings every year and put into an account that pays 8% interest, how much will her savings be after 25 years?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 14 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.2 million? Click on the table icon to view the PVIF table To have $1.2 million at retirement, the amount Sarah must invest today is $ (Round to the nearest cent.)
You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 10.5% per year on your investments and you plan to retire in 36 years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 28 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 28th withdrawal (assume your savings will continue to earn 10.5% in retirement)? d. If, instead, you decide to withdraw $270,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…
You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year with the first investment made one year from now. You think you can earn 10.0% per year on your investments and you plan to retire in 43 years, immediately after making your last $5,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 20th withdrawal (assume your savings will continue to earn 10.0% in retirement)? d. If, instead, you decide to withdraw $300,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.4 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 7 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 17 percent, how soon could she then retire? a. If Sarah can earn 7 percent annually for the next 35 years, the amount of money she will have to invest today is $ C (Round to the nearest cent.)
(Present value) Sarah Wiggum would like to make a single investment and have $2.4 million at the time of her retirement in 32 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 17 percent, how soon could she then retire? a. If Sarah can earn 5 percent annually for the next 32 years, the amount of money she will have to invest today is $nothing. (Round to the nearest cent.)
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Now consider your financial objective is to save $500,000 for preparing your retirement, assuming 30 years from now. If you invest your RRSP savings in a mutual fund which can realize an average return of 10% per year. To achieve your goal, how much do you need to save at the end of each year over the 30-year period? a. 4,039.26 b. 3,039.62 c. 2,985.54 d. 10,988.32 What is the FV of $100 deposited today into an account with an APR 12.6%, compounded semiannually for 10 years? a. 1478.96 b. 3460.06 c. 327.63 d. 339.36 A car dealer offers payment of $525.32 per months for 60 months on a $30,000 car after making a $5000 down payment. What's the loan's APR? a. 10.4798% b. 9.5224% c. 1.9609% d. 0.7935%
SOLVE the following:i. Suppose that your five-year old daughter has just announced her desire toattend college. After some research, you determined that you will need aboutRM 100,000 on her 18th birthday to pay for four years of college. If you canearn 8% annually on your investments, how much do you need to invest todayto achieve your goal?ii. Suppose you have an extra RM100 today that you wish to invest in for oneyear. If you can earn 10% per annum on your investment, how much will youhave in one year?
Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? If Sarah can earn an annual return of 14 percent, the number of years until she could retire is________years. (Round to one decimal place.)
Please help me sir future value of annuity
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