After reviewing the CPI inflation calculator at inflationdata.com, Hanna Lind realized the importance of creating an investment plan for her future. She would need $10,997.34 in 2018 to have the same purchasing power her $8,800 (stored in a fireproof safe in her home since 2000) had when she put it there. To protect her savings against further inflation and to help her prepare for a healthy financial future, Hanna deposits her $8,800 in an investment account in 2018 earning 4% interest compounded quarterly. How much will Hanna have in her account in 2028? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

After reviewing the CPI inflation calculator at inflationdata.com, Hanna Lind realized the importance of creating an investment plan for her future. She would need $10,997.34 in 2018 to have the same purchasing power her $8,800 (stored in a fireproof safe in her home since 2000) had when she put it there. To protect her savings against further inflation and to help her prepare for a healthy financial future, Hanna deposits her $8,800 in an investment account in 2018 earning 4% interest compounded quarterly. How much will Hanna have in her account in 2028? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

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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After reviewing the CPI inflation calculator at inflationdata.com,Hanna Lind realized the importance of creating an investment plan for her future. She would need $10,773.00 in 2018 to have the same purchasing power her $9,100 (stored in a fireproof safe in her home since 2000) had when she put it there. To prevent her savings against further inflation and to help her prepare for a healthy financial future, Hanna deposits her $9,100 in an investment account in 2018 earning 6% interest compounded quarterly. How much will Hanna have in her account in 2018? Round your answer to the nearest dollar amount.
Honey wants to go to Siargao at the age of 25 and she is 20 years old today. She wants to know how much it will be worth her money if she saves 600.00 every 6 month and the banks' interest rate is 6% per year and she will start saving on june 30, 2021?
7. Future value of annuities There are two categories of cash flows: single cash flows, referred to as "lump sums," and annuities. Based on your understanding of annuities, answer the following questions. Which of the following statements about annuities are true? Check all that apply. O An annuity is a series of equal payments made at fixed intervals for a specified number of periods. An annuity due earns more interest than an ordinary annuity of equal time. □ Ordinary annuities make fixed payments at the beginning of each period for a certain time period. An annuity due is an annuity that makes a payment at the beginning of each period for a certain time period. Which of the following is an example of an annuity? O An investment in a certificate of deposit (CD) O A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time
Gabe and Sarah would like to begin saving for their children's college education. They would like to know the amount of college funds that would be necessary on day one of college to pay for all tuition costs for each child. The current tuition at the university is $25,000. The couple is comfortable assuming an annual rate of return of 6% on their college investment savings program. They anticipate that each child will begin college at age 18 and attend for four years. The Consumer Price Index (CPI) is expected to be 3% and the expected college inflation rate is 5% per year.
On January 1, you plan to take a trip around the world upon graduation four years from now. Your grandmother wants to deposit sufficient funds for this trip in an investment account for you. On the basis of a budget, you estimate that the trip currently would cost $15,000. Being the generous and sweet lady she is, your grandmother decided to deposit $3,500 in the fund at the end of each of the next four years, starting on December 31, 2021. The account will earn 6 percent annual Interest, which will be added to the account at each year-end. (Future Value of $1. Present Value of $1. Future Value Annulty of $1. Present Value Annulty of $1, Financial Calculator) (Use tables, Excel, or a financial calculator.) Required: 1. How much money will you have for the trip at the end of year 4 (1.e., after four deposits)? 2. What is the total amount of Interest earned over the four years? 3. How much Interest revenue did the fund earn in each of the four years, starting in 2021? Complete this…
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Elizabeth recently calculated her financial score. She was stunned to see how low it turned out to be. Undaunted, Elizabeth is determined to turn her financial situation around. To do this, she has set a financial goal to create an emergency savings fund. She can save $440 per month ($5,280 per year). She would like to accumulate $21.720 over the next 4 years. If Elizabeth can earn a 5% rate of return on her yearly savings, do you think she will accomplish her goal? (Round future value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 52.75.) Future value of an annuity Elizabeth accomplish her goal.

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