Ana Maria's family would need $33,500 for annual living expenses if she should pass away. Her husband earns $15,100 per year and the family has additional yearly income of $12,000 from investments. If the prevailing interest rate is 13.3%, how much life insurance the nearest $1,000.) needed to cover the family's income shortfall? (Round your answer t O $2,000 O $48,000 O $138,000 O $192,000

Ana Maria's family would need $33,500 for annual living expenses if she should pass away. Her husband earns $15,100 per year and the family has additional yearly income of $12,000 from investments. If the prevailing interest rate is 13.3%, how much life insurance the nearest $1,000.) needed to cover the family's income shortfall? (Round your answer t O $2,000 O $48,000 O $138,000 O $192,000

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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Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years? Multiple Choice O O $562.67 $602.86 $643.06 $416.79
A couple thinking about retirement decide to put aside $2,400 each year in a savings plan that earns 7% interest. In 10 years they will receive a gift of $26,000 that also can be invested. a. How much money will they have accumulated 30 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If their goal is to retire with $740,000 of savings, how much extra do they need to save every year?
88) Kathy is buying her first home. She is financing a total of $185,000 at an APR of 5% for 25 years. How much are her monthly payments? A) $952.33 B) $1,081.49 C) $1,441.23 D) $1,664.85 89) Juanita has determined that the PITI on the house she would like to purchase will be $1,260 per month. What is the minimum gross salary she will need to qualify for a mortgage from a reputable lender? A) $6,300 per month B) $4,500 per month C) $3,500 per month D) $5,040 per month 90) Tran currently makes $4,500 per month in gross income. He has a student loan payment of $250 per month and a car loan of $450 per month. His credit card payments average $300 per month. What is the largest PITI he could qualify for with a reputable lender? A) $620 B) $900 C) $1,260 D) $1,620 91) Bob and Mary Kay have gross household income of $7,000 per month. They both have great credit scores and the home they are interested in buying appraised higher than the selling price.…
Your parents will retire in 26 years. They currently have $360,000 saved, and they think they will need $1,050,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Ivanna wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 5.4% interest, compounded annually. Payments will be made at the end of each year. 2 How much money will she need to pay into the annuity each year for the annuity to have a total value of $6000 after 5 years? D Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. Aa ?
Your parents will retire in 23 years. They currently have $300,000 saved, and they think they will need $2,500,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. %
Jamal is building his first residence and has saved $15,000 that will be used as his down payment. The bank's requirement is 30%. The total cost of the house and land is $150,000 Mortgage Indemnity Insurance will cost 8%. How much more money does he need in order to qualify for the mortgage loan? What percent is he contributing? Select one A. $30,000/15% B. $30,000/S2,400 $37 500/8.57% D. $52,500/7% Clear my choice
6. Adrianna wants to provide retirement income for her dependent parents for 23 years should she die. Adriana earns $67,500 and feels that her parents could live on 70% of that amount. If the insurance funds could be invested at 5.5%, how much life insurance does Adrianna purchase using the desired income method? O $714,666.67 $618,666.67 $859,090.91 $1,546,667.84
5. A. compounded continuously. She ultimately would like to purchase a $15000 car. How much would she Miss Kito decides to invest some of her money in an account gaining 7% interest have to invest initially to have the necessary money in 5 years? Round your answer to the nearest whole dollar. Note: For continuous compounding you can use the formula: A = Pert
Your parents will retire in 26 years. They currently have $230,000 saved, and they think they will need $1,250,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Your parents are planning to retire in 20 years. They currently have $1,000,000 and they would like to have $5,000,000 when they retire. What annual rate of interest would they have to earn on their $1,000,000 to reach their goal, assuming they save no more money?
Your parents hope to sell their large home and net $380,000 and then retire to a nice Florida community that is valued at $150,000. After they sell the property, they plan to invest the $230,000 in equity and earn a 4 percent after-tax return. Approximately how much will this nest egg be worth in 5 years when they retire? Round to the nearest cent. DO NOT INCLUDE COMMAS OR $. Type your response Submit

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