Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a sinking fund paying a 9% interest rate compounded quarterly to accumulate $1,000,000 in 20 years? She needs to make quarterly payment of $

Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a sinking fund paying a 9% interest rate compounded quarterly to accumulate $1,000,000 in 20 years? She needs to make quarterly payment of $

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

Sarah Wiggum would like to make a single investment and have $1.7 million at the time of her retirement in 40 years. She has found a mutual fund that will earn 6 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.7 million? To have $1.7 million at retirement, the amount Sarah must invest today is $_________(Round to the nearest cent.) see attachment for PVIF table
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.
Your grandparents would ilke to establish a trust fund that will pay you and your heirs $125,000 per year forever with the first payment 10 years from today. If the trust fund earns an annual return of 2.4 percent, how much must your grandparents deposit today?
Jennifer Davis is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $28,000 for the down payment. If Jennifer can invest in a fund that pays 7.0 percent annual interest, compounded quarterly, how much will she have to invest today to have enough money for the down payment? (Round intermediate calculations to 6 decimal places, e.g. 2.512512 and final answer to 2 decimal places, e.g. 2,515.25.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Amount to be invested today
(Future value) Sarah Wiggum would like to make a single lump-sum investment and have $1.7 million at the time of her retirement in 28 years. She has found a mutual fund that expects to earn 77 percent annually. How much must Sarah invest today? If Sarah earned an annual return of 14 percent, how much must she invest today?
You are saving for the graduation (4 years) of your two children. They are two years apartin age; one will begin university in 15 years from today, the other will begin in 17 yearsfrom today. You estimate your children’s university expenses to be $21,000 per year perchild. The annual interest rate is 15 percent. How much money must you deposit in anaccount each year to fund your children’s education? You will begin payments one yearfrom today. You will make your last deposit when your oldest child enters university.
Hannah wants to have $1500 to help pay for a new deck in 13 years. If she wants to put her money into an account earning 8.5% interest compound continuously, how much should she invest now, so that she will have $1500 in 13 years? Payment amount =
Morgan has $500,000 accumulated in her RRSP and intends to use the amount to purchase a 20-year annuity. She is investigating the size of annuity payment she can expect to receive, depending on the rate of return earned by the undistributed funds. What nominal rate of return must the funds earn for the monthly payment to be: a. $3000? b. $3500? c. $4000
Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $2.3 million?
Carla Willis will invest $26,000 today. She needs $52,317 in 12 years. What annual interest rate must she earn?
Help!!!!
Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 14 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.2 million? Click on the table icon to view the PVIF table To have $1.2 million at retirement, the amount Sarah must invest today is $ (Round to the nearest cent.)

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