CHAUZWRtZW50dW0uY29tL2xlYXJuZXItdWkvc2VJb25kYXJ5L3VzZXItY... ☆ Unit Activity: Mathematical Models and Investments Each question is worth four points Part A Tiffany is 45 and has three children in elementary school and college. She has been contributing to Social Security for over 20 years. List and describe three ways in which Tiffany and her family could get benefits from Social Security. Make sure that the three situations are completely different. BIUX² X₂ .15px V Space used (includes formatting): 0/ 15000 A V Char Gis inv Part B Which investment would earn the most money by retirement at age 65? 1. investing $5,000 in stocks at 6% return at age 25 2. Investing $10,000 in bonds at 3% interest at age 35 3. investing $10,000 in stocks at 8% return at age 45 Explain the reasoning behind your answer. AV E B B 10 of 11 19 D 1 Save & Exit

CHAUZWRtZW50dW0uY29tL2xlYXJuZXItdWkvc2VJb25kYXJ5L3VzZXItY... ☆ Unit Activity: Mathematical Models and Investments Each question is worth four points Part A Tiffany is 45 and has three children in elementary school and college. She has been contributing to Social Security for over 20 years. List and describe three ways in which Tiffany and her family could get benefits from Social Security. Make sure that the three situations are completely different. BIUX² X₂ .15px V Space used (includes formatting): 0/ 15000 A V Char Gis inv Part B Which investment would earn the most money by retirement at age 65? 1. investing $5,000 in stocks at 6% return at age 25 2. Investing $10,000 in bonds at 3% interest at age 35 3. investing $10,000 in stocks at 8% return at age 45 Explain the reasoning behind your answer. AV E B B 10 of 11 19 D 1 Save & Exit

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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2) Consider the following information Billions of BHD Transfer Payments Made by Household 50 Personal Interest Payments 10 Personal Income 500 Personal Consumption Expenditures 100 a) If the income tax rate is 20%, calculate the personal savings and personal saving rate
Sheldon Cooper and Amy Fowler are married and live in Pasadena, California. They have as a new investment goal to create a college fund for their newborn daughter. They estimate that they will need $195,000 in 18 years. Assuming that the Cooper-Fowler family could obtain a return of 5 percent, how much would they need to invest annually to reach their goal? Use Appendix A-3 or the Garman/Forgue companion website. Round your answer to the nearest dollar. Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places.
! Required information [The following information applies to the questions displayed below.] Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2023 in each of the following alternative scenarios? Use Exhibit 8-9. e. Julie paid $4,400 to the day care center, and her AGI is $14,000 ($2,400 salary and $11,600 unearned income). Child and dependent care credit
Assume you are working with the foundation to fund a scholarship in your name. Currently, the foundation can earn a 5 percent return on any donations. A. How much money would you need to donate to fund a scholarship that pays $25,000 every year forever, starting one year from now? B. How much money would you need to donate if the foundation could increase their return to 7 percent on any donations?
Anna and Andrew open a joint account to a certain cooperative to have a better investment. The total amount they earned in selling rugs was put in their accounts in the cooperative to help their parents. Their total earnings amounting to 5,000.00 will earn an interest rate of 7.5% per year. Help them to compute for the simple interest earned and maturity value, if their money will be invested in 3 years.
Aa.6
Explain your answer
Billy Dan and Betty Lou were recently married and want to start saving for their dream home. They expect the house they want will cost approximately $255,000. They hope to be able to purchase the house for cash in 7 years. To determine the appropriate discount factor(s) using tables, click here to view Tables I. II. II. or IV in the appendix. Alternatively, if you calculate the discount factor(s) using a formula, round to six (6) decimal places before using the factor in the problem. Required a. How much will Billy Dan and Betty Lou have to invest each year to purchase their dream home at the end of 7 years? Assume an interest rate of 9 percent. b. Billy Dan's parents want to give the couple a substantial wedding gift for the purchase of their future home. How much must Billy Dan's parents give them now if they are to reach the desired amount of $255,000 in 9 years? Assume an interest rate of 9 percent. Complete this question by entering your answers in the tabs below. Required A…
(Click on the into a spreadsheet.) Annuity B C Premium paid today $24.098.32 $22,274.30 $31,240.13 $30,150.95 Annual benefit $3,200 $4100 $4,000 $4,200 Life (years) 20 10 15
DIRECTIONS Use the information below to fill out a consumer equity form and calculate the net worth for each family. Net worth can be a useful tool to measure your financial progress from year to year. Your net worth is a grand total of all assets what vou own) minus liabilities (what vou owe: debts). It's important to understand that vour income Isn tine only Tactor that determines your wealtn. Occupation Annual Income Retirement Investments Real Estate Vehicles Credit Card Debt Emergency Fund Checking Account Household Items FAMILY A FAMILY B Nurse and Sales Appliance Installer $105,000 combined $45,000 $35,000 $22,000 Owns a house appraised at $224,000 with a mortgage balance of $202.000 Owns a house appraised at $180,000 with a mortgage balance of $126,000 New truck with Blue Book value Used sedan with retail value of $32,000; owes $35,000 of $9,500; paid for Used SUV with a retail value of $17,500; owes $14,500 $13,000 None $1.000 $5.000 $2,500 $650 Antiques: $5,000 Electronics:…
You want to save up to pay your 9-year-old child's college tuition fee, which costs $63,200, when he'll be 17. Given an interest rate of 3.5%, how much would you need to invest now to be able to pay for their college. Select one: a.$47,994.81 b.$21,403.06 c.$39,058.98 d.$29,394.81
Find how large must the annual payments be in the subsequent 6 years(t = 5, 6, 7, 8, 9, and 10) to meet their daughter’s anticipated college costs, by using mathematical formulas (not excel) **ANS: 3782 DOLLARS

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