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a. You need to accumulate $17,000 for a trip you wish to take in nine years. You are able to earn 6% compounded semiannually on your savings. You plan to make only one deposit and let the money accumulate for nine years. How would you determine the amount of the one-time deposit? (Round your answer to 2 decimal places.) b. Assume the same facts as in part (a) except that you will make semiannual deposits to your savings account. What is the required amount of each semiannual deposit? (Round your answer to 2 decimal places.) c-1. You want to retire after working 30 years with savings in excess of $1,100,000. You expect to save $3,400 a year for 30 years and earn an annual rate of interest of 11%. (Round your answer to 2 decimal places.) c-2. Will you be able to retire with more than $1,100,000 in 30 years? d-1. A sweepstakes agency names you a grand prize winner. You can take $221,000 immediately or elect to receive annual installments of $30,000 for 30 years. You can earn 11% annually on any investments you make. (Round your answer to 2 decimal places.) d-2. Which prize do you choose to receive? Complete this question by entering your answers in the tabs below. Req A Req B Req Cl Req C2 Req D1 Req Dz

a. You need to accumulate $17,000 for a trip you wish to take in nine years. You are able to earn 6% compounded semiannually on your savings. You plan to make only one deposit and let the money accumulate for nine years. How would you determine the amount of the one-time deposit? (Round your answer to 2 decimal places.) b. Assume the same facts as in part (a) except that you will make semiannual deposits to your savings account. What is the required amount of each semiannual deposit? (Round your answer to 2 decimal places.) c-1. You want to retire after working 30 years with savings in excess of $1,100,000. You expect to save $3,400 a year for 30 years and earn an annual rate of interest of 11%. (Round your answer to 2 decimal places.) c-2. Will you be able to retire with more than $1,100,000 in 30 years? d-1. A sweepstakes agency names you a grand prize winner. You can take $221,000 immediately or elect to receive annual installments of $30,000 for 30 years. You can earn 11% annually on any investments you make. (Round your answer to 2 decimal places.) d-2. Which prize do you choose to receive? Complete this question by entering your answers in the tabs below. Req A Req B Req Cl Req C2 Req D1 Req Dz

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
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a. You need to accumulate $17,000 for a trip you wish to take in nine years. You are able to earn 6% compounded semiannually on your savings. You plan to make only one deposit and let the money accumulate for nine years. How would you determine the amount of the one-time deposit? (Round your answer to 2 decimal places.) b. Assume the same facts as in part (a) except that you will make semiannual deposits to your savings account. What is the required amount of each semiannual deposit? (Round your answer to 2 decimal places.) c-1. You want to retire after working 30 years with savings in excess of $1,100,000. You expect to save $3,400 a year for 30 years and earn an annual rate of interest of 11%. (Round your answer to 2 decimal places.) c-2. Will you be able to retire with more than $1,100,000 in 30 years? d-1. A sweepstakes agency names you a grand prize winner. You can take $221,000 immediately or elect to receive annual installments of $30,000 for 30 years. You can earn 11% annually on any investments you make. (Round your answer to 2 decimal places.) d-2. Which prize do you choose to receive? Complete this question by entering your answers in the tabs below. Req A Future Value Req C2 You need to accumulate $17,000 for a trip you wish to take in nine years. You are able to earn 6% compounded semianr on your savings. You plan to make only one deposit and let the money accumulate for nine years. How would you determ the amount of the one-time deposit? (Round your answer to 2 decimal places.) Table Factor Req B Table Values are Based on: n T Req Cl Present Value Req D1 < Req A Req D2 Req B >
Transcribed Image Text:a. You need to accumulate $17,000 for a trip you wish to take in nine years. You are able to earn 6% compounded semiannually on your savings. You plan to make only one deposit and let the money accumulate for nine years. How would you determine the amount of the one-time deposit? (Round your answer to 2 decimal places.) b. Assume the same facts as in part (a) except that you will make semiannual deposits to your savings account. What is the required amount of each semiannual deposit? (Round your answer to 2 decimal places.) c-1. You want to retire after working 30 years with savings in excess of $1,100,000. You expect to save $3,400 a year for 30 years and earn an annual rate of interest of 11%. (Round your answer to 2 decimal places.) c-2. Will you be able to retire with more than $1,100,000 in 30 years? d-1. A sweepstakes agency names you a grand prize winner. You can take $221,000 immediately or elect to receive annual installments of $30,000 for 30 years. You can earn 11% annually on any investments you make. (Round your answer to 2 decimal places.) d-2. Which prize do you choose to receive? Complete this question by entering your answers in the tabs below. Req A Future Value Req C2 You need to accumulate $17,000 for a trip you wish to take in nine years. You are able to earn 6% compounded semianr on your savings. You plan to make only one deposit and let the money accumulate for nine years. How would you determ the amount of the one-time deposit? (Round your answer to 2 decimal places.) Table Factor Req B Table Values are Based on: n T Req Cl Present Value Req D1 < Req A Req D2 Req B >
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