In 25 years, you are hoping to have saved $120 000 towards your child’s university education. If you are able to save $3000 at the end of each year for the next 25 years, what rate of return must you earn on your investments in order to achieve your goal? a. 5% b. 6% c. None of answers given  d. 4%

Q: You currently have $20,000 saved for retirement and can afford to put aside $5,000 per year (end of…

A: Given information,Present value: Payment per period: Future value: Years:  yearsTo derive,Future…

Q: Through your career, you have saved-up $1,150,000. You are now ready to retire. You discuss your…

A: Present Value = pv = $1,150,000Annuity = pmt = $68,000Time = nper = 25 Years

Q: 1On the day you retire you have $500,000 saved. You expect to live another 30 years during which…

A: Time value of money refers to the concept that money available today is worth more than the same…

Q: upon graduation you get a new job and start an investment program. You invest 8000 per year starting…

A: Annual deposit=$8000Period=n=35yearsInterest rate=9%Inflation=3%

Q: Assume the total cost of a college education will be $300,000 when your child enters college in 18…

A: Future Value = Present Value * ( 1 + Interest rate)time period

Q: You expect to receive $11,000 at graduation in two years. You plan on investing it at 8 percent…

A: Given Information Present Value =$11,000 Future Value =$1,00,000 Interest rate = 8%

Q: Assume your goal in life is to retire with four million dollars. How much would you need to save at…

A: The amount needed to save annually can be calculated with the help of future value of annuity

Q: help with this requirement Scenarios\\n $8,550 per year at the end of each of the next six…

A: The money and resources that a person or family receives during their retirement years are referred…

Q: You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal…

A: Future value = fv = $2 million Time = t = 30 years Nominal rate = 11% Inflation rate = 5.5%

Q: Your father has RM500,000 and wants to retire. He expects to live for another 20 years, and to be…

A: The maximum amount that can be withdrawn depends on the time period and interest rate of the period…

Q: Jennifer establishes an investment account to pay for college expenses for her daughter. She plans…

A: Future value of 4 withdraws  of $66000 can be calculated by following formula FV (rate, nper, pmt,…

Q: Assume your goal in life is to retire with $3,200,000.How much would you need to save at the end of…

A: Future value (F) = $ 3,200,000 Interest rate (i) = 4% Number of annual deposits (n) = 30

Q: Suppose you earned a $330,000 bonus this year and invested it at 8.25% per year. How much could you…

A: It is a case of calculating the annuity of withdrawals. The withdrawals are done on an annual basis…

Q: FUTURE VALUES Su Mei’s parents want to put enough money aside for her education by the time she goes…

A: Future values refer to those values that are calculated by using the present cash flows. An investor…

Q: An investor has $100,000 to invest in a business venture, or she can earn 10%/year with a $100,000…

A: Capital Budgeting is the process of identifying, analyzing and selecting the best long-term…

Q: None

A: To determine how much needs to be invested today to provide for the college education fund,…

Q: QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Suppose you inherited $935,000 and invested it at 8.25% per year. How much could you withdraw at the…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: You plan to deposit into your bank account $100 two years from now, $200 three years from now and…

A: A bank provides interest on the amount deposited or invested. Therefore, the withdrawal will consist…

Q: Mr. Darden is selling his house for $200,000. He bought it for $164,000 ten years ago. What is the…

A: The annual rate reflects the rate by which the investment increases each year. This is also known as…

Q: How much would $1. growing at 6.8% per year, be worth after 75 years? Select the correct answer. O a…

A: We need to use future value formula below to calculate worth after 75 years.FV =PV(1+i)nWhereFV…

Q: Your grandparents just gave you a gift of $3,000. You are investing this money for 10 years at 3…

A: Solution:- In simple interest method, amount of interest earned = Principal amount x Annual interest…

Q: What does Shelley need to save monthly to make sure she is on track to reach her retirement goal of…

A: the correct answer is:c. $681 Explanation:To calculate the monthly savings required to reach…

Q: How much do you need to invest today to receive $7,500 in 8 years, if you can earn 3% on your…

A: INFORMATION: RATE 3% YEARS 8 PMT (MONTHLY DEPOSIT) 0 FUTURE VALUE $7,500

Q: , how much would he have to invest to have

A: This calculation is based on the compound interest formula, which takes into account the fact that…

Q: What rate of return would you need if you wanted to accumulate $1,000,000 in 25 years and invest…

A: Rate of return: It implies to the rate that is often expected or charged by the investor from the…

Q: year to go to school for 2 years. The total cost of going to school is $30,000. If you want to be…

A: The question is related to minimum income to recover the loss suffered over a period of 7 years.…

Q: 6. You decide you want to start investing for your retirement and you want to have $650,000. If you…

A: Time value of money is a concept that is used by companies to determine the present worth of money…

Q: please explain your answer....

A: The objective of this question is to find out how much John needs to invest now in order to have…

Q: ls answer  very faast.I ll upvote. Thank You Bobbie has $6,000 that she wants to invest today to…

A: The question is based on the concept of financial management. Future value can be calculated by…

Q: college fund. It the total cost of education will be $325,000 and you want to have this amount when…

A: Information Provided: Present value = $55,000 Future value = $325,000 Term = 16 years Payment = $0

Q: Compound Interest, Balance Sheet, Profits, and Capitalization Table 1. Your only child will go to…

A: Compounding is a technique through which future value of present amount is computed by using…