(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? CIT a. If Sarah can earn 4 percent annually for the next 35 years, the amount of money she will have to invest today is $ 506,830 (Round to the nearest cent.) b. If Sarah can earn an annual return of 14 percent, the number of years until she could retire is years. (Round to one decimal place.) 4

(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? CIT a. If Sarah can earn 4 percent annually for the next 35 years, the amount of money she will have to invest today is $ 506,830 (Round to the nearest cent.) b. If Sarah can earn an annual return of 14 percent, the number of years until she could retire is years. (Round to one decimal place.) 4

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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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?
Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her retirement time. She deposits RM4,800 each year in the investment that give 6% until her retirement day. How much she will have accumulate?
Shenli would like to plan for retirement. With the help of a financial planner, she estimates that she will need $2,300,000 when she retires 40 years from now. Assume her investments produce returns of 10% per year. How much would Shenli need to save each year if she makes equal end of year deposits for the next 40 years that she works? Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±5.
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
(Future value) Sarah Wiggum would like to make a single lump-sum investment and have $1.7 million at the time of her retirement in 28 years. She has found a mutual fund that expects to earn 77 percent annually. How much must Sarah invest today? If Sarah earned an annual return of 14 percent, how much must she invest today?
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will eam 4 percent annually. How much will Sarah have to invest today? If Sarah eamed an annual return of 14 percent, how soon could she then retire? a. If Sarah can eam 4 percent annually for the next 35 years, the amount of money she will have to invest today is $ (Round to the nearest cent).
Please help me
Only by formula please!!! Linda is saving for retirement and would like to accumulate $750,000 at her retirement. She currently has $40,000 saved and would like to work for another 30 years. She plans to save $5000 at the end of each year over the next 30 years. What rate of return must she earn on her investments over the next 30 years?
Need urgently
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?
A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals. Years until retirement: 30 Amount to withdraw each year: $120,000 Years to withdraw in retirement: 25 Interest rate: 7.5% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. Required: Now assume that the inflation rate is 3%. Consequently, when your friend retires she will want to withdraw $120,000 each year in today’s dollars. What amount is she planning to receive in year 31 (the end of her first year of retirement)? How much does she need to have in retirement at the end of year 30 in order to receive her retirement payments assuming that these retirement payments continue to increase at 3% per year throughout her retirement?…
Your client is 40 years old; and she wants to begin saving for her retirement, with the firs payment to come one year from now. She can save Rs. 5000 per year and you advise her to invest it in the stock market., which expect to provide average return of 9% in the future.a) If she follows your advice, how much money she will have at the age of 65?b) How much she will have at the age of 70?c) She expects to live for 20 years if she retires at 65 and for 15 years if she retires at the age of 70. If her investment continues to earn the same rate of return, how much will she be able to withdraw at the end of each year after retirement at each retirement age?

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