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9&10) Set up the integral or formula necessary to solve the problem, then use Desmos or a calculator to evaluate. a) T.Perez the owner of a hardware store wants to sell his business for an amount that will establish a fund from which he will withdraw $15,000 a year for the next ten years. If the going interest rate is 5%, how much should he ask for his business to establish this fund? b) On January 1, 1992 Marcus deposited $3000 into an Individual Retirement Account (IRA) paying interest at the rate of 5.5% compounded continuously. Assuming that he deposits $3000 annually into the account, how much did he have in his IRA at the beginning of 20087

9&10) Set up the integral or formula necessary to solve the problem, then use Desmos or a calculator to evaluate. a) T.Perez the owner of a hardware store wants to sell his business for an amount that will establish a fund from which he will withdraw $15,000 a year for the next ten years. If the going interest rate is 5%, how much should he ask for his business to establish this fund? b) On January 1, 1992 Marcus deposited $3000 into an Individual Retirement Account (IRA) paying interest at the rate of 5.5% compounded continuously. Assuming that he deposits $3000 annually into the account, how much did he have in his IRA at the beginning of 20087

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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9&10) Set up the integral or formula necessary to solve the problem, then use Desmos or a calculator to evaluate. a) T.Perez the owner of a hardware store wants to sell his business for an amount that will establish a fund from which he will withdraw $15,000 a year for the next ten years. If the going interest rate is 5%, how much should he ask for his business to establish this fund? b) On January 1, 1992 Marcus deposited $3000 into an Individual Retirement Account (IRA) paying interest at the rate of 5.5% compounded continuously. Assuming that he deposits $3000 annually into the account, how much did he have in his IRA at the beginning of 20087 c) You wish to have a scholarship in your dog's name for $1000 each year to a deserving veterinary student, awarded indefinitely. How much should you donate, at 4% interest compounded continuously, to establish your scholarship? d) Lucky Su buys a winning scratcher ticket worth $500,000. Because the amount is under $1 million it is paid out in a lump sum. If Su invests half her winnings at 7.5% for 15 years until she retires, how much will she have upon retirement?
Transcribed Image Text:9&10) Set up the integral or formula necessary to solve the problem, then use Desmos or a calculator to evaluate. a) T.Perez the owner of a hardware store wants to sell his business for an amount that will establish a fund from which he will withdraw $15,000 a year for the next ten years. If the going interest rate is 5%, how much should he ask for his business to establish this fund? b) On January 1, 1992 Marcus deposited $3000 into an Individual Retirement Account (IRA) paying interest at the rate of 5.5% compounded continuously. Assuming that he deposits $3000 annually into the account, how much did he have in his IRA at the beginning of 20087 c) You wish to have a scholarship in your dog's name for $1000 each year to a deserving veterinary student, awarded indefinitely. How much should you donate, at 4% interest compounded continuously, to establish your scholarship? d) Lucky Su buys a winning scratcher ticket worth $500,000. Because the amount is under $1 million it is paid out in a lump sum. If Su invests half her winnings at 7.5% for 15 years until she retires, how much will she have upon retirement?
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