Alice keeps meaning to invest more in her RRSP, Her original plan was to invest $6000 eight months ago and an additional $7000 in four months. Unfortunately due to unforseen circumstances; she was not able to make her original payment and wants to restructure her payments. She is now hoping to invest $8000 in six months and make another payment in one year. If her RRSP earns 6% compounded monthly, how much should her second payment be in order to have the same value as her original plan? Answer: Check

Alice keeps meaning to invest more in her RRSP, Her original plan was to invest $6000 eight months ago and an additional $7000 in four months. Unfortunately due to unforseen circumstances; she was not able to make her original payment and wants to restructure her payments. She is now hoping to invest $8000 in six months and make another payment in one year. If her RRSP earns 6% compounded monthly, how much should her second payment be in order to have the same value as her original plan? Answer: Check

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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Similar questions

Debra Moore needs $20,000 3 years from now. How much should she invest today in order to reach her goal if she can earn 6% compounded annually? Round answers to the nearest dollar.
Sofia wants to start saving immediately for a trip to Hong Kong one year from now. She wants to accumulate P220,000 for the trip. Her savings account pays 12% compounded bimonthly. What must she deposit at the beginning of every two months to reach the target in one year?
Paul and Donna Kelsch are planning a Mediterranean cruise in 5 years and will need $9,500 for the trip. They decide to set up a sinking fund" savings account for the vacation. They intend to make regular payments at the end of each 3-month period into the account that pays 8% interest compounded quarterly. What periodic sinking fund payment will allow them to achieve their vacation goal? Round your answer to the nearest cent. Do not round intermediate calculations.
Michelle wants to set aside funds to take an around the world cruise in 7 years. Michelle expects that she will need $26500 for her dream vacation. If she is able to earn 8% per annum on an investment, how much will she have to set aside today so that she will have sufficient funds available? O $15462. O $14316. O $2970. O $45414.
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,440 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,110 plus an additional investment at the end of the second year of $5,550. What is the NPV of this opportunity if the interest rate is 1.5% per year? What is the NPV of this opportunity if the interest rate is 1.5% per year? The NPV of this opportunity is $_______ (Round to the nearest cent)
Kala wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 4.8% interest, compounded annually. Payments will be made at the end of each year. 圖 00 How much money will she need to pay into the annuity each year for the annuity to have a total value of ss000 after 3 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the ilist of financial formulas.
A young engineer wants to surprise her husband with a European vacation for their tenth anniversary, which is five years from now. She determine that the trip will cost $7,000. Assuming an interest rate of 5.5% compounded daily, approximately how much money does she need to deposit today for the trip?
Barbara has a sum of money to invest. She has two options. One offers a 24% rate compounded yearly where no interest is given for a fraction of a year. The other offers a 12% rate compounded monthly. If, unexpectedly, she had to retrieve her money after exactly 23 months, which option would be more profitable?
Angela wishes to buy a boat in five years that presently costs $150,000. She expects the cost of the boat to increase due to inflation by 3% per year for the next two years and 4% per year the following three years. She also wants to spend $50,000 per year for 6 years beginning at the end of 10 years from today. How much must she save each year for the next 5 years if she can earn 6% on her investments? a. $66,302.67 b. $64,347.13 c. $65,946.95 d. $61,349.81 e. None of these are correct
Roxanne plans on going on vacation to Europe in four years. The trip will cost $4,000. She proposes to finance the trip by investing a sum of money now at 8% compounded annually. How much should Roxanne invest now in order to obtain her goal of $4,000? Answer the following questions: Fill in the factor that you used to solve the problem : How much should Roxanne invest now in order to obtain her goal (round up to the nearest dollar)?

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