'ou receive a $7,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 12% per year and ou think you will need to have $14,000 saved for the down payment. How long will it be before the $7,000 has grown to $14,000 ? o double the money you received from your grandparents, it will take years. (Round to one decimal place.)

'ou receive a $7,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 12% per year and ou think you will need to have $14,000 saved for the down payment. How long will it be before the $7,000 has grown to $14,000 ? o double the money you received from your grandparents, it will take years. (Round to one decimal place.)

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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Today is your 22nd birthday and you have just started your first job out of college. You decide that you will put $10,000 into a retirement account every year on your birthday until you retire. The first $10,000 deposit will happen on your 23rd birthday (in one year from today) and your last deposit will be on your 65th You plan to retire on your 65th birthday. If your investment earns an 8.5% annual return, how much will you have saved up when you retire?
Assume that your parents wanted to have $150,000 saved for university by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 5.5% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $190,000 saved, just in case, how much would they have to save each year to reach their new goal? a. To reach the goal of $150,000, the amount they have to save each year is $. (Round to the nearest cent.) Clear all
our grandparents just gave you $40,000 for your 21st birthday. You want to set aside some of that money so you can withdraw $1,500 per month for living experises for the 20 months you attend BCIT and still have $7,000 left at the end of the 20 months to pay for a trip after graduation. Your first withdrawal will be 1(1)/(2) years from now when you start BCIT. Assume both the money set aside and the annuity earns 65% compounded quarterly. (a) How much of the $40,000 must you set aside? (b) How much interest will you earn
Richard just entered a university, and his parents are planning to give him a car upon graduation. How much should they invest into an account with an APR of 10% compounded monthly if they estimate that in four years the car will cost $15,000? Round your answer to the nearest cent.
7) You are expecting twins and want to have $500,000 by the time your two kids go to college. You believe you can earn a return of 7%/year. You have nothing saved up. But you can contribute $8,000 each year going forward. How many years will it take you to grow your money to $500,000?
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?
You are thinking of building a new machine that will save you $3,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 2% per year forever. What is the present value of the savings if the interest rate is 9% per year? The present value of the savings is $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer MacBook Air
Your parents will retire in 19 years. They currently have $200,000 saved, and they think they will need $1,500,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $36,000 at the end of each year for the next 8 years. You expect to earn 12 percent each year. Required: 1. Determine how much you will have saved after 8 years. 2. Determine the amount saved if you were able to deposit $38,000 each year. 3. Determine the amount saved if you deposit $36.000 each year, but with 14 percent interest. Complete this question by entering your answers in the tabs below. Required 1 Required 21 Required 3 Determine how much you will have saved after 8 years. Note: Round your final answer to the nearest whole dollar. Balance in the Savings Account. Required 2 >
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?
Your parents will retire in 17 years. They currently have $310,000 saved, and they think they will need $2,200,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. %
Vijay

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