Present value. You are currently in the job market. Your dream is to earn a six-figure salary ($150,000). You hope to accomplish this goal within the next 28 years. In your field, salaries grow at 3% per year. What starting sala you need to reach this goal? What starting salary do you need to reach this goal? S (Round to the nearest cent)

Present value. You are currently in the job market. Your dream is to earn a six-figure salary ($150,000). You hope to accomplish this goal within the next 28 years. In your field, salaries grow at 3% per year. What starting sala you need to reach this goal? What starting salary do you need to reach this goal? S (Round to the nearest cent)

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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HR wants to offer a Country Club membership for a group of employees that will cost the company $10,000 dollars a year. They will begin annually starting one year from now. 1. What amount must be invested today at 8.0% compounded annually to fund the scholarship program in perpetuity? 2. Given the current economic climate the CEO has lowered the initial investment amount you had available to $100,000, how much do you now have for the Country Club membership program?
You are hetting paid $12,000 a month, at the end of each wokeing month. What is the present value of a year's salary knowing that the annual interest rate is 9%. You employer is also offering to pay you $6,000 bi month(twice a month). What are the present values of a year salary paid in these two different way? which one do you prefer if you want to maximize the present value of your payments.
An investment product offers a monthly rate of return of 5%. If Amy invests $1,000 today for this product, how long does it take for Amy's money to grow to $1,500?
Suppose that, at age 30, you might wish to leave your job and pursue a master’s degree. If you choose to remain at your job, your employer would pay you $74k per year until retirement, at age 55. If you go back to the university, you would have to sacrifice 2 years of income, but once you graduate, you would receive $117k per year until you retire at age 55. The master’s program you are interested in costs $22k per year. Note: The term “k” is used to represent thousands (× $1,000). Required: At an opportunity cost of 8%, determine the percentage difference between your most and least profitable alternatives, with the least profitable option as the basis for your calculation.Answer% Intermediate calculations must be rounded to 3 decimal places (at least). Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).
A prospective MBA student earns $60,000 per year in her current job and expects that amount to increase by 13% per year. She is considering leaving her job to attend business school for two years at a cost of $40,000 per year. She has been told that her starting salary after business school is likely to be $130,000 and that amount will increase by 11% per year. Consider a time horizon of 10 years, use a discount rate of 9%, and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice? Please round your answer to the nearest dollar.
Please answer this correrctly I'll rate!
Your new Job offers a savings plan that pays 1.00 percent in interest each month. You can't participate in the plan, however, until you have 5 years with the company. At that time you will start saving $850 a month for the next 20 years. How much will you have in this savings account in 25 years? Round your answer to two decimals. $1 Another perk of your new job is that, after 5 years with the company, you will also get an increase of $50 in your monthly salary. Assume you would stay with the company for 20 more years after getting the salary increase, and that you discount at 1.00 percent each month. What is this salary increase worth to you today? Round your answer to two decimals.
Your new job offers a savings plan that pays 0.75 percent in interest each month. You can't participate in the plan, however, until you have 5 years with the company. At that time you will start saving $100 a month for the next 28 years. How much will you have in this savings account in 33 years? Round your answer to two decimals. $ Another perk of your new job is that, after 5 years with the company, you will also get an increase of $125 in your monthly salary. Assume you would stay with the company for 28 more years after getting the salary increase, and that you discount at 0.75 percent each month. What is this salary increase worth to you today? Round your answer to two decimals.
You have just finished your undergraduate degree and you have two career options: Option 1: Accepting a job offer with the starting salary of $75,000 per year (paid at the end of the year) and an annual raise of 2% pa (guaranteed). You will work in this company for 40 years. Option 2: Choosing a graduate program which will cost you $28,000 per year for the next two years (paid at the beginning of each year). Following the graduate school, you can get a job that offers the initial salary of $85,000 (paid at the end of the Year 3) with an annual raise of 3% pa (guaranteed). You will work in this company for 38 years. a. If you use the discount rate of 10% pa, which option is more lucrative for you? b.At what discount rate will you be indifferent between these two career options? (Hint: You need to use the incremental cash flows to answer this question) c. If option 2 (i.e., work after grad school) comes with a signing bonus (paid at the beginning of Year 3), at what signing bonus will…
Please please solve in excel Only Only excel and show step
Problem Solving: Answer the problem. Write your complete solutions and conclusions. 1. Alfred is a bachelor with a stable job. He is thinking of his future plans and one of his goal is to have an investment of ₱1,000,000 after five years. The amount to be invested will earn an interest of 12% compounded quarterly. Determine the amount to be invested by Alfred at 12% interest compounded quarterly.
Paul just graduated from college and landed his first "real" job, which pays $43.200 a year. In 13 years, what will he need to earn to maintain the same purchasing power if inflation averages 2 percent? The future value, Fv, Paul will need to earn if inflation averages 2 percent is $______ (Round to the nearest cent.) Please answer fast i give you upvote.

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