intrences800GookSuppose you are 35 and have a $90,000 face amount, 15-year, limited-payment, participating policy (dividends will be used tobuild up the cash value of the policy). Your annual premium is $810. The cash value of the policy is expected to be $3,600 in 15years. Using time value of money and assuming you could invest your money elsewhere for a 8 percent annual yield, calculate thenet cost of insurance. Use (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D)Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round time value factor to 3decimal places and final answer to the nearest whole number.Net cost of insuranceD

Step 1: Finding the FV of annuity of $810 for 15 years @ 8% pa Formula for future value of…

Answered: int rences 8 00 Gook Suppose you are 35…

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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How much should you invest each month in order to have $300,000 if your rate of return is 5.6% compounded monthly and you want to achieve your goal in 40 years? $ How much interest will you earn? $ How much should you invest each month in order to have $300,000 if you want to achieve your goal in 20 years? $ If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years? $ es
1. Your client has been offered the opportunity to invest in a project which will pay $1,000 per month at the end of months 1 to 10 and $2,000 per month at the end of months 21 to 30. The interest rate over the period of the investment is a nominal rate of 8% p.a. If your client can buy the investment today for $25,000 would you recommend that this is a good investment? Why or why not?
You are targeting a retirement portfolio value of $1,700,000 in 25 years. You plan to make annual payments at the end of each of those years. You expect your investments to earn an annual return of 7.50% per year. What should your annual payment be to achieve your retirement target? Group of answer choices $26,258.55 $35,011.40 $25,008.14 $23,263.39 $30,009.77
You plan to deposit $100 at the end of every quarter (3 months) for 10 years starting at the end of month 1. Then after leaving the money in the account for several years, you plan to withdraw everything 20 years from today. How much is available to withdraw at the end of year 20 if the account pays a nominal annual rate of 6% compounded monthly? Question 4 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices. Option A Option B F=? F=? 120 1 120 240 240 i = 0.5% i= 6% A = 100 A = 100 Option C Option D F=? F=? 10 10 20 20 i= 0.5% i = 6% A = 100 A = 100 Question 4 Part B: Identify the correct Function Notation for this scenario. F = 100(P/A,0.5%,10)(P/F, 0.5%, 10) O F = 100(F/A,6%,120)(P/F, 6%, 120) O F = 100(F/A,0.5%,120)(F/P, 0.5%, 120) F = 100(F/A,6%,10)(F/P, 6%, 10) Question 4 Part C: Provide the final value for withdrawal at the end of year 20. Enter your answer in the form: 12345.67 Question 4 Part D: Choose the statement that is most correct…
Y8
Suppose you earned a $273,000 bonus this year and invested it at 8.20% per year. How much could you withdraw at the end of each of the next 20 years? Group of answer choices $29,648 $32,703 $31,146 $34,370 $28,221
ATV commercial offers investors a perpetuity that will pay you $200 next year. The payment will then increase by 3.00% every year going forward. You would like a 7.00% on your investment. What is the value of this "offer" if the company can deliver what is promised? $206 $200 $5,000 $2,872
How much should you invest each month in order to have $500,000 if your rate of return is 3.9% compounded monthly and you want to achieve your goal in 40 years?$How much interest will you earn?$How much should you invest each month in order to have $500,000 if you want to achieve your goal in 20 years?$If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?$

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