Jaimie just graduated and would like to purchase a house in 4 years. If she has $215 automatically invested out of each paycheck at the end of each month for 4 years into an emerging markets value fund paying 11% (compounded monthly), how much of a down payment will she have at the end of 4 years? a. $133,058 b. $12,891 c. $12,600 d. $130,000 e. $12,461

Jaimie just graduated and would like to purchase a house in 4 years. If she has $215 automatically invested out of each paycheck at the end of each month for 4 years into an emerging markets value fund paying 11% (compounded monthly), how much of a down payment will she have at the end of 4 years? a. $133,058 b. $12,891 c. $12,600 d. $130,000 e. $12,461

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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Question - : Your child is going to college for the next 4 years. You are setting up a college fund that your child withdraws from at the BEGINNING of each 6 month period (2 withdrawls each year). Each withdrawl is $ 3000. The account pays 12% annual interest rate, compounded 2 times a year. How much money should you put in the account now?
6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?
•Donald Trump is saving up to support his daughter's college education. He has decided to deposit $666.00 per month for 18 years. Then his daughter will go to college and receive monthly payments for an expected 4 years. If rates are assumed to be 5% compounded monthly, how large will those monthly payments be when she is in college over the 4 years? (Timeline is 22 years) use financial calculator
Carol wants to have $13,000 when she turns 30. Right now, she's 23 (7 years difference). She has $5,500 that she can invest in a mutual fund. If she leaves the money in this account for the full 7 years and it earns 12.5%, compounding quarterly, how much will be in the account? Group of answer choices $13,134.24 $13,018.28 $10,312.50 $2,323.66 Please answer using an excel formula.
Hannah wants to have $ 5500 to help pay for a new deck in 13 years. If she wants to put her money into an account earning 8% interest compounded continuously, how much should she invest now, so that she will have $ 5500 in 13 years? Payment amount =
You are doing a special project for the boss and he is going to give you a $5,000 bonus when it is completed in 3 years. In the meantime, you and your partner are having a baby this year. You intend to put your bonus into a 6% investment and let it accumulate until the baby is 18 years old when you will withdraw the total amount for college expenses. How much will the fund be at the end of 18 years? O $11,983 O $116,380 O $154,503 O $179,742
Sonia wants to have $13,000 in 8 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.) $
2. (a) A college student, Amy, decides to fund a retirement account with $2000 per year for 8 years, with the first deposit made one year from today. The rate of return will be 10%. How much will she have in her account when she retires in 40 years? (b) Amy’s friend, Dacio, decides he will start funding his retirement account 8 years from now (first payment in 9 years). He then will invest $2000 each year for 32 years. If his rate of return is 10%, how much will he have when he retires in 40 years?
aa.3 Your daughter is born today and you want her to have $1.5 million dollars by the time she is 35 years old. You open an investment account that promises to pay 8% per year. How much money must you deposit each year, starting on her 1st birthday and ending on her 35th birthday, so your daughter will have $1,500,000 at age 35?
4. You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have negotiated a nominal interest rate of 12 percent and you plan to pay-off the car over five years. What is the monthly payments you must make on this loan? 5. Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways? a. Annually b. Quarterly C. Monthly
You are saving money for your daughter's private school tuition of $110,000, which is needed in 9 years. To this end, you decide to deposit an amount into a savings account with 4% nominal rate compounded monthly. Assuming you make no other deposits, how much would your initial deposit need to be? a. $67,073.23 b. $70,313.49 c. $73,555.96 d. $76,790.35
Assume that you own an annuity that will pay you $14,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $125,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? a. 11.20% b. 4.46% c. 4.87% d. 20.01% e. 5.90%

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