Answered: How much should he invest in each…

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Finance

How much should he invest in each account to make enough interest while minimizing his risk?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

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(1) SITUATION There are two brothers; Percy and Liam. They both have the goal to retire at the age of 65 with one million dollars in their respective bank accounts. They have been talking to people familiar with the stock market, who assure them that over long periods of time they will be able to earn an 8% return by investing. ANNUITIES Percy decides that instead of doing a one-time payment, he is going to save a little bit each month. If he begins saving $350 per month at age 25, will he meet his goal? (2) Liam follows his brother and begins to save $350 per month – except he again waits until he is 35. How much less will Liam have than his brother at retirement? .
Jace is trying to determine how to invest $1,234.56 that he inherited from his cousin Elijah. He has the following options at his bank. Certificate of Deposit that pays 4.25% simple interest.Savings Account that pays 3.95% compounded annually.How much will the CD be worth if he left the money untouched for 30 years? A) $2,808.66 B) $5,246.88 C) $4,303.23 D) $28,086.60
C) flat D) inverted 4. Ali is saving for a downpayment to buy a house. He deposits a fixed amount every quarter in a mutual fund that earns an APR of 10.0% in average. If his account calculates returns quarterly then how much should he deposit each quarter in order to have $50,000 in the account in five years' time? A) $2,280 B) $1852 C) $2,045 D) $1,957 5. Two years ago you purchased a new MPV for $50,000. You financed your MPV for 60 months at 6.15% APR (with payments made at the end of the month). You have just made your 24th monthly payment on your MPV. Assuming that you have made all of the first 24 payments on time, what is the outstanding principal balance (rounded to the nearest dollar) on your MPV loan? A) $17,818 B) $34,925 C) $31,818 D) $23,283
1. If you want to have $500,000 when you retire and you put $85,000 in your retirement account right now, and you can get an interest rate of 5.2% a year, how many years will it take you to achieve your goal? 2. Sammy decides to set up a retirement fund. He deposits $7,000 a year. He earns an annual interest rate of 4.5. How much will Sammy have in his retirement fund in 25 years? 3. Sammy wants to see what his retirement fund would be if he made $7,000 deposits at the first of every year instead of at the end. How much will Sammy have im his retirement fund in 25 years at the rate of 4.5% if the deposits are made at the beginning of the year? 4. Sammy wants to help a fellow small business owner. The other owner, Mr. Noles offers to pay Sammy $4,250 a year for 8 years in exchange for a loan of $28,000. If the interest rate is 4.2%, is this a good investment for Sammy? What is the present value of this annuity?
Please get to me soon.
Elena wanted to invest in a trust fund. She borrows from a credit cooperative that charges 8% simple interest rate to be deducted in advance and payable in 2 years. How much will she borrow to start investing P50, 000? Select the correct response: 52, 085.23 55, 700.00 59, 523.81 60, 250.00
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You invest in a mutual fund that charges a 5% front-end load, 1% total annual fees, and a 2% back-end load, which decreases 0.5% per year. How much will you pay in fees on a $10,800 vestment that does not grow if you cash out after 3 years of no gain? Mutiple Choice O O C $540 $109 $745 $895 A
Your aunt has $270,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end? a. 8.30 b. 7.98 c. 8.94 d. 8.06 e. 9.19
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Mr. X will retire at the age of 60 years. He wishes to have an amount of S200,000 in his account at the time of retirement. Currently he is of the age of 40 years and has an amoun of S25,000 in hand. How much interest rate a bank should offer so he has the desired amount at retirement. A. 11.00%. B10.50% C. 10.96% D. 12.00%
N. Ebriate, a college student at a party university, decides to forego beerdrinking and invest the $100 he saves at the end of each month in a mutualfund that is currently earning 11 percent annually. He has a job where heearns income and invests this money in a Roth IRA.a. How much will he have in his fund in 4 years on graduation?b. If he graduates at 22 and leaves this investment in the mutual fund withoutadding any additional funds, how much will he have at age 60?c. If he really enjoys his work and decides to leave the money in the fund untilage 75, how much will he have?d. If he never touches this mutual fund and dies at the age of 90, how muchwill he leave in his estate from only this investment?