Sam wants to have $160,000 in four years from now. She found an investment, earning 6% per year, compounded monthly. How much would she have to invest today to achieve her goal? O $120,890 O $141,678 O $133,807 O $149,549 O $125,936

Sam wants to have $160,000 in four years from now. She found an investment, earning 6% per year, compounded monthly. How much would she have to invest today to achieve her goal? O $120,890 O $141,678 O $133,807 O $149,549 O $125,936

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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Sam wants to have $160,000 in four years from now. She found an investment, earning 6% per year, compounded monthly.
How much would she have to invest today to achieve her goal?
O $120,890
O $141,678
O $133,807
O $149,549
O $125,936
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19
Alex wants to buy a shopping complex in Vancouver 3 years after completing his Masters. The complex will cost CAD 17,000,000 and he would need a 20% down payment after 5 years. To save for the down payment, Alex could deposit one lump sum today at a 6% annual compound rate. Alternatively, Alex can wait one year and make one lump sum deposit. Will Alex need more money to deposit if she does it now or after one year? How much more is required? (Use Formula Approach)
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