During a divorce, one partner must pay $5100 in quarterly alimony to their former spouse for 13 years. As this partner is wealthy, they decide to set up an alimony account with automatic quarterly payments to their former spouse. How much money should the partner deposit into this alimony account now as an investment if the account earns 3.3% interest.

During a divorce, one partner must pay $5100 in quarterly alimony to their former spouse for 13 years. As this partner is wealthy, they decide to set up an alimony account with automatic quarterly payments to their former spouse. How much money should the partner deposit into this alimony account now as an investment if the account earns 3.3% interest.

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

A girl inherits $30,000.00 under the rules of a will, with the condition that her guardian maintain the money in trust until it reaches $60,000.00. If the money is invested at 8% compounded quarterly, when will the girl get it?
Derek can deposit $19,305.00 on each birthday beginning with his 26.00th and ending with his 69.00th. What will the rate on the retirement account need to be for him to have $3,825,432.00 in it when he retires?
Vickie and her husband Jason have been married for 25 years and are planning to retire this year. Jason's PIA is $2,000. Renee's PIA is $800. Assuming they are both full retirement age, what is their maximum joint retirement benefit under Social Security? $3,000 $2,800 $2,000 O $4,000
Frank buys a house at age 48 for $600,000 by making a $170,000 down payment and securing a 30-year mortgage with 3.54%/year interest compounded monthly. He sells his house at age 65 when he retires for $840,000 and adds his equity in his retirement account. If Frank wants to receive $8,000 every month during his retirement for 28 year, then how much he needs to deposit every month into his retirement account starting at age 27 that pays interest at the rate of 2.07%/year compounded monthly?
Donna enters into an investment contract that will guarantee her 4% per year if she deposits $3,500 each year for the next 10 years. She must make the first deposit one year from today, the day she signs the agreement. How much will she have when she makes her last payment 10 years from now? Assume the same facts as in problem 1 above, except that Donna negotiates the chance to make her first payment now and continue to pay at the beginning of each year for the 10-year period. How much will she have accumulated?
Question 27 of 50. Mark and Carrie are married, and they will file a joint return. They both work full-time, and their 2021 income totaled $89,000, all from wages. They have one dependent child, Aubrey (5). During the year, they spent $9,000 for Aubrey's child care. Neither Mark nor Carrie received any dependent care benefits from their employer. What amount may they use to calculate the Child and Dependent Care Credit? $0 $3,000 $8,000 $9,000 Mark for follow up
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 7%, 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 7% 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.)
At the time of her grandson's birth, a grandmother deposits $12,000 in an account that pays 3.5% compounded monthly. What will be the value of the account at the child's twenty-first birthday, assuming that no other deposits or withdrawals are made during this period? The value of the account will be $ (Round to the nearest dollar as needed.)
Ted and Alice Hansel have a son who will begin college 10 years from today. School expenses of $48,000 will need to be paid at the beginning of each of the four years that their son plans to attend college. What is the duration of this liability to the couple if they can borrow and lend at the market interest rate of 10.8 percent? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Answer is complete but not entirely correct. 10.09238 Duration
Godo
Gina deposits her inheritance into an account earning interest of 4% compounded annually. She will not withdraw the money until the balance has doubled. How long will Gina have to leave the money in the account?
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.)

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