Michael Jones plans to save $5,928 every year for the next eight years, starting today. At the end of eight years, Michael will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 11 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $

Michael Jones plans to save $5,928 every year for the next eight years, starting today. At the end of eight years, Michael will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 11 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $

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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X Your answer is incorrect. Chris Anderson plans to save $5,716 every year for the next eight years, starting today. At the end of eight years, Chris will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 12 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment 2844.12
To save for her newborn son's college education, Lea Wilson will invest P1,000 at the beginning of each year for the next 18 years. The interest rate is 12 percent. What is the future value? * 55,750. O 7,690 34,931. O 63,440. O 62,440.
Gabriel plans to retire when he has $1,500,000 in his bank account, and he does not want to work more than 30 years. If this account has a APR of 5.4%, determine the minimum monthly annuity payment he would need to make. Round your answer to the nearest dollar.
Sarah Wiggum would like to make a single investment and have $1.7 million at the time of her retirement in 40 years. She has found a mutual fund that will earn 6 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.7 million? To have $1.7 million at retirement, the amount Sarah must invest today is $_________(Round to the nearest cent.) see attachment for PVIF table
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?
Jennifer Davis is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $28,000 for the down payment. If Jennifer can invest in a fund that pays 7.0 percent annual interest, compounded quarterly, how much will she have to invest today to have enough money for the down payment? (Round intermediate calculations to 6 decimal places, e.g. 2.512512 and final answer to 2 decimal places, e.g. 2,515.25.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Amount to be invested today
Aaron would like to have $2,000,000 when he retires 42 years from now. How much should he set aside each week if his investments can earn 9.1 % ?
Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $2.3 million?
Tom plans to save $92 a month, starting today, for 18 years. Dick plans to save $92 a month for 18 years, starting one month from today. Both Tom and Dick expect to earn an average return of 5.4 percent APR on their savings and both will make the same number of deposits. At the end of the 18 years, how much more (in $) will Tom have than Dick? Answer to two decimals.
Joe Pierce has been offered the opportunity of investing $178,556.90 now. The investment will earn 8% per year and at the end of its life will return $500,000 to Joe. How many years must Joe wait to receive the $500,000?
Your brother plans to start investing. He will invest $655 today; $1073 in 3 year and $1280 in 6 years. How much will he have in 14 years if he earns a 11.2% rate of interest? Answer:
Your sister turned 35 today, and she is planning to save $60,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires? Her first withdrawal will be made at the end of her first retirement year. a. $266,770.46 b. $556,561.79 c. $598,303.93 d. $517,731.90 e. $248,158.57

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