Lily Enterprise wants to accumulate a total sum of $824,000 in a few years. They want to deposit $145,800 today and make additional $29,150 deposits at the end of every six months thereafter. How many additional deposits and how long will it take to accumulate the $824,000 if interest rate is 5.99% compounded monthly? Enter the future value as a positive value in the FV box below. Enter PV and PMT as positive or negative values based on FV being positive. Report N (number of additional deposits) as a whole number. P/Y = C/Y = N = I/Y = PV = $ PMT = $ FV = $

Lily Enterprise wants to accumulate a total sum of $824,000 in a few years. They want to deposit $145,800 today and make additional $29,150 deposits at the end of every six months thereafter. How many additional deposits and how long will it take to accumulate the $824,000 if interest rate is 5.99% compounded monthly? Enter the future value as a positive value in the FV box below. Enter PV and PMT as positive or negative values based on FV being positive. Report N (number of additional deposits) as a whole number. P/Y = C/Y = N = I/Y = PV = $ PMT = $ FV = $

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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You are considering a safe investment opportunity that requires a $1,450 investment today, and will pay $950 two years from now and another $710 five years from now. a. What is the IRR of this investment? b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any horizon, can you make the decision by simply comparing this EAR with the IRR of the investment? Explain. a. What is the IRR of this investment? The IRR of this investment is %. (Round to two decimal places.)
At the moment you don't have any money saved for retirement, but have resolved to start making $425 monthly payments (starting one month from today) into an account expected to earn an effective annual rate of 9.9%. Given that plan, how many years will it take for you to accumulate $2.4 million? (Use excel or a financial calculator)
Jeff has $12,160 in his savings account and wants this to accumulate to $60,000 for a condominium down payment. Suppose he plans to make deposits of $860 at the beginning of every three months into this account which earns 5.9% compounded monthly. How long will it take to accumulate the $60,000 ? Choose calculator mode: Enter the future value as a positive value in the FV box below. Enter PV and PMT as positive or negative values based on FV being positive. Report N as a whole number. Please answer fast I give you upvote
A simple formula can help you estimate the number of years required to double your money. It's called the Rule of 72. You simply divide 72 by the interest rate (without the percent sign). For example, with an interest rate of 4%, your money will double in 72/4, or 18 years. For your initial post 1. Select one of the following questions to answer: If I invest $1000 at 3% interest, how long will take for my money to double? If I invest $1000 at 6% interest, how long will take for my money to double? If I invest $1000 at 8% interest, how long will take for my money to double? If I invest $1000 at 12% interest, how long will take for my money to double? 2. Select one of the following questions to answer: If $120 doubles in approximately 13 years, what is the interest rate? If $120 doubles in approximately 19 years, what is the interest rate? If $120 doubles in approximately 23 years, what is the interest rate? Answer the two questions in the instructions. You must include calculations…
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Denise has just set up an investment plan that would fulfill her life-long dream of buying a brand "T" EV coming out in exactly 2 years. The Plan will distribute fixed amount of cash flows every quarter but also allows the payouts be reinvested under the plan at the same return rate. The first payout will be made one quarter from now. Suppose the plan offers a fixed yearly return of 16.9859% for the next two years. a) Calculate the corresponding (effective) quarterly rate of return provided by the investment plan. [Note: Round the percentage to the nearest integer.] b) Calculate the maximum value years later) Denise can afford to offer to buy the EV if she invests $200,000 into the plan today AND i) reinvests the quarterly payouts during the two years ii) withdraws all the quarterly payouts for consumption purpose
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Hi There! I solved the problem below, but can you answer the question and put everything on an excel spreadsheet and show the formulas please for the questions below. You are offered the opportunity to put some money away for retirement. You will receive 10 annual payments of $5,000 each beginning in 26 years. If you desire an annual interest rate of 12% compounded monthly, answer the following two questions: How much would you be willing to invest today? How much would the money (that you will be willing to invest today) be worth at the end of your last payment (i.e., in year 35)? Amount that you would be willing to invest today = PV = $5,000/(1.01)26*12 + $5,000/(1.101)27*12 + $5,000/(1.01)28*12 + $5,000/(1.01)29*12 + $5,000/(1.01)30*12 + $5,000/(1.01)31*12 + $5,000/(1.01)32*12 + $5,000/(1.01)33*12 + $5,000/(1.01)34*12 + $5,000/(1.01)35*12 = $1,388.638 Amount that would the money worth at the end of your last payment = FV = $1388.64 * (1+ 0.01)35*12 = $90691.52

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