Solve step by step using excel: Upon starting your new job after college, you've been confronted with selectingthe investments for your 401(k) retirement plan. You have four choices for investing your money: A moneymarket fund that has historically returned about 1% per year. A long-term bond fund that has earned anaverage annual return of 4.5%. A conservative common-stock fund that has earned 6.5% per year. Anaggressive common-stock fund that has earned 9.0% per year. If you were to contribute $5,500 per year for thenext 35 years, how much would you accumulate in each of the above funds? Now, change your worksheet sothat it allows for less than annual investments (monthly, biweekly, etc.). The annual investment will be the same,but it will be made in smaller, more frequent, amounts. Set up a scenario analysis that shows your accumulatedvalue in each fund if you were to invest quarterly, monthly, biweekly, and weekly. Create a scenario summary ofyour results. What relationship do you notice between the frequency of investment and the future value? Createa column chart of the results that more clearly shows the outcome from more frequently investing.

Step-by-Step using Excel to Analyze 401(k) Investment Options1. Setting Up the Spreadsheet:Create a…

Answered: Solve step by step using excel: Upon…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter1: Introduction To Finance For Entrepreneurs

Section: Chapter Questions

Problem 4EP

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Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio. Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision.Payoff Table State of Nature Alternatives Good Economy Fair Economy Poor Economy Mutual Fund 1,0001,000 650650 270270 Stock Market 6,5006,500 4,7004,700 3,3003,300 CDs 1,5001,500 850850 710710 Bonds 650650 270270 205205 Step 2 of 2: What is Monique’s potential payoff based on the the Hurwicz Criterion strategy and an α=0.35α=0.35?
Michey Lawson is considering investing some money that he inherited. The following payoff table gives the profits that would be realized during the next year for each of the three investment alternatives Mickey is considering: STATE OF NATURE DECISION ALTERNATIVE GOOD ECONOMY POOR ECONOMY Stock market 75,000 -20,000 Bonds 55,000 30,000 CDs 45,000 20,000 Probability 0.3 0.7 Show complete work in your answers to parts a-e: a) What kind of decision-making environment is this?
Financial planners (and engineering economists) unanimously encourage people to seek out the highest rate of return possible within their personal level of risk tolerance. To illustrate this point, they frequently produce a table similar to the one below. Fill in the blank cells in this table assuming that your goal is to have $1,050,000on your 65th birthday and that deposits start on your 26th birthday and continue annually in the same amount on each birthday up to and including your 65th birthday. Interest Rate Earned Amount of Required Annual Deposit 4%/year $ 5%/year $ 6%/year $ 7%/year S 8%/year $ 9%/year $
You unexpectedly earn $1,200. Instead of blowing through the money, you decide to invest it in a mutual fund which earns 4.0% compounded annually. You would like to know how long you will need to keep the money invested for your investment to grow to $66,000. What would you need to enter in Excel to help you answer this question? =NPER(4.0%, -1200, 66000) =NPER(0.04, 0, -1200, 66000) =NPV(0.04, -1200, 66000) =NPER(4.0%, 0, 1200, 66000)
Dont uplode image in answer, USE BAII Plus Financial Calculator to solve the TVM questions. $_____________You would like to start saving for retirement. Assuming you are now 22 years old and you want to retire at age 60, you have 38 years to watch your investment grow. You decide to invest in the stock market, which you expect it to earn about 6% per year into the future. You decide to invest $600 at the end of each month for the next 38 years (456 months). Calculate your accumulated investment at the end of 38 years. (Round to nearest whole dollar)
Suppose you retire with $1million at age of 65. You plan to invest your retirement into a mixture of a riky fund and a fixed income fund, where the return of the risky fund follows a normal distribution. You plans to withdraw $150,000 at the end of every year from this accout. To prevent overwithdrawal at the end, you put a safety cushion of 3 If balance of the retirement fund at the end of year, before annual withdrawal is less than 3 times the planned annual withdrawal amount, you withdraw one-third of the remaining balance. (Hint: use IF function) You want to find out how much you are left at the age of 75. Simulate one time to find out the remaining balance at the age of 17 ( 10 years later) Simulate 100 times, find out average, standard deviation, along with probabilty of the remaining fund is positive.
You have an investment opportunity that promises to pay you $12,979 in four years. Suppose the opportunity requires you to invest $9,540 today. What is the interest rate you would earn on this investment? Note: Use tables, Excel, or a financial calculator. Do not round your intermediate values. Enter your answer rounded to the nearest whole percentage. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Solve for i Present Value: n = i = Future Value:
Your client says, “With the unrealized gains in my portfolio, I have almost saved enough money for my daughter to go to college in 8 years, but educational costs keep going up.” On the basis of this statement alone, which one of the following appears to be least important to your client’s investment policy?a. Time horizon.b. Purchasing power risk.c. Liquidity.d. Taxes.
Today, you invest a lump sum amount in an equity fund that provides an 12% annual return. You would like to have $10,900 in 6 years to help with a down payment for a home. How much do you need to deposit today to reach your $10,900 goal? Do not round intermediate calculations. Round your answer to the nearest cent.
Ineed it in urgent .Please help me with it in brief.
You are shopping around to determine which bank account yields the highest return. You have three choices: 1st - Wesbanco offers an account compounded semi-annually at 3.99% 2nd - PNC offers an account compounded annually at 3.89% 3rd - United offers an account compounded daily at 3.82% You have $2,200 to invest for 2 years. Which account should you choose to have the best return on your investment?
An investor is considering 4 investments, A, B, C, and D (leaving his money in the bank). The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem. The investor has estimated the probability of a declining economy at 70% and an expanding economy at 30%. Investment A Economy Decline Expand -10 ITT B 20 90 50 40 45 D (bank) 15 20 What is the expected value of perfect information? Group of answer choices 13 13.5 14 14.5 15 15.5 What decision should be made according to the EMV decision rule? Group of answer choices A C D What decision should be made according to the EOL decision rule? Group of answer choices A B C

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