Allison and Leslie, who are twins, just received$15,000 each for their 29th birthday. Theyboth have aspirations to become millionaires.Eachplans to make a $5,000 annual contributionto her "early retivement fund" on her birthday,begiming a year from today. Allison opened anaccount with the Jafety First Bund Fund, a mutualfund that invests in high-quality bonds whoseinvestors have earned 8% per year in the past.Leslie invested in the New Issue Bio- Tech Fund,which invests in small, newly issued bio tech stucksand whose investors have earned an average of 17%per year in the find's relatively short history.u) If the two women's funds eam the same returnsin the future as in the past, how old will each bewhen she becomes a millionaire? Round your answersto two decimal places.yearsAllisonLeslie.yearsb) How large would Allison's annual contributions haveto be for her to become a millionaire at thesame age as Leslie, assuming their expected returnsare realized? Round your answer to the nearest cent.

Here, AllisonLeslieCurrent Amount received $ 15,000.00 $ 15,000.00Current Age2929Annual…

Allison and Leslie, who are twins, just received $15,000 each for their 29th birthday, They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retivement fund" on her birthday, begining a year from today. Allison opened an account with the Jafety First Bund Fund, a mutual find that invests in high-quality bonds whose investors have earned 8% per year in the past, Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio tech stocks and whose investors have earned an average of 17% por year in the find's relatively short history. mani 4) If the two women's funds eam the same returns in the future as in the past, how old will each be when she becomes a millionaire? Round your answers to two decimal places. Gears Allison Leslie. years b) How large would Allison's annual contributions have to be for her to become a millionaire at the same age as leslie, assuming their expected returns are realized: Round your answer to the nearest cent.

Allison and Leslie, who are twins, just received $15,000 each for their 29th birthday, They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retivement fund" on her birthday, begining a year from today. Allison opened an account with the Jafety First Bund Fund, a mutual find that invests in high-quality bonds whose investors have earned 8% per year in the past, Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio tech stocks and whose investors have earned an average of 17% por year in the find's relatively short history. mani 4) If the two women's funds eam the same returns in the future as in the past, how old will each be when she becomes a millionaire? Round your answers to two decimal places. Gears Allison Leslie. years b) How large would Allison's annual contributions have to be for her to become a millionaire at the same age as leslie, assuming their expected returns are realized: Round your answer to the nearest cent.

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

Felix is keen to apply his finance knowledge to his real-life investment goals. He is currently 19 years of age and wishes to retire from full-time work at the age of 60 with $5 000 000 in his portfolio. He started contributing monthly to a NASDAQ index fund. e) Felix is now 60 years old. He wants to set up a college fund for his grandchild Salah. He is aiming to be able to pass on $150 000 in 10 years’ time. How much does Felix need to set aside today into a college fund for Salah, assuming the fund earns 7.20% per annum?
Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 31) in an account that earns 9%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 9% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)? (Round your answer to the nearest cent.)
Mike and Emily each have invested $100, 000 in an investment account. No other contributions will be made to their investment account. Both have the sarne goal; they each want their account to reach $3,000,000 at which time each will retire. Mike has his money invested in risk free securities with an expected return of 12% compounded monthly. Emily has her money invested in a stock fund with an expected return of 15% compounded quarterly. How many years after Emily retires will Mike retire?
Ben invested $7,500 twenty years ago with an insurance company that has paid him 6 percent simple interest on his funds. Charles invested $7,500 twenty years ago in a fund that has paid him 6 percent interest, compounded annually. How much more interest has Charles earned than Ben over the past 20 years?
Hamza and Khalifa have been best friends since high school. They have recently learnt about the concept of superannuation, and are now both planning their retirement early. Both Hamza and Khalifa would like to have $2 million at the age of 60, each, when they retire. Hamza plans on depositing equal annual amounts into his superannuation fund on each birthday, starting at the age of 21, and ending at the age of 60 (that includes a deposit on the 60th birthday as well). Khalifa, however, starts making deposits into his superannuation fund on his 30th birthday and plans to deposit equal annual amounts on each birthday until he turns 60 (that includes a deposit on the 60th birthday as well). If the investment funds earn 10% per year, calculate the amounts the Hamza and Khalifa respectively will have to save each year to meet their retirement goals. Comment on the difference.
Twins graduate from college together and start their careers. Twin 1 invests $2500 at the end of each year for 10 years only (until age 34) in an account that earns 9%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 9% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)? (Round your answer to the nearest cent.)
Alan invests a total of $11,000 in three different ways. He invests one part in a mutual fund which in the first year has a return of 11%. He invests the second part in a government bond at 7% per year. The third part he puts in the bank at 5% per year. He invests twice as much in the mutual fund as in the bank. The first year Alan's investments bring a total return of $890. How much did he invest in each way?
Twins Natalie and Kaitlyn are both age 27. They both live in Warren, Ohio. Beginning at age 27, Natalie invests $2,000 per year for ten years and then never sets aside another penny. Kaitlyn waits ten years and then invests $2,000 per year for the next 30 years. Assuming they both earn 7 percent, how much will each twin have at age 67.
Andrew and Emma Garfield invested $7,700 in a savings account paying 8% annual interest when their daughter, Angela, was born. They also deposited $1,400 on each of her birthdays until she was 15 (including her 15th birthday).How much was in the savings account on her 15th birthday (after the last deposit)?
Billy wants to prepare funds for when he retires such that from his 60th to 70th years he will be able to receive equal withdrawals of P20,000 for his annual expenses. He invests equal amount during his 40th to 59th birthdays in a mutual fund with 12% interest compounded annually. How much was Billy’s equal deposits from those years?
"Amber recently inherited $510,000, which she immediately invested in an equity index mutual fund. If she plans to withdraw $2,000 per month from her account, what annual interest rate must she earn in order to have $128,000 left after 43 years? (Enter your answer as a whole number with two decimal places. For example, if your answer is 14.1025%, enter 14.10 as your answer)"
Allison and Leslle, who are twins, just received $35,000 each for their 22th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 7% per year in the past. Leslie invested in the New Issue Blo-Tech Fund, which Invests in small, newly Issued bio-tech stocks and whose investors have earned an average of 14% per year in the fund's relatively short history. a. If the two women's funds earn the same returns the future as in the past, how old will each be when she becomes millionaire? Do not round Intermediate calculations. Round your answers to two decimal places. Allison: years Leslie: b. How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Lesile, assuming their expected…

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