Tara invests $3000 today and another $1,500 a year from now until 5 years. She stops investing from year 6 until year 10. If she earns a rate of return of 5% on her investments, determine future worth of her investments at the end of year 10.
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- Maria started a new job at age 25. At that time, she began investing $14400 each year earning a return of 8%. At age 35, after 10 years of those investments, her financial situation changed and she was not able to continue the annual contributions. If she leaves the money already invested in her account, what will be the balance of her account after 30 more years assuming the same 8% interest rate? O $1049567.94 O $208606.46 O $1631278.22 O $2099135.88Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years?Janet Woo decided to retire to Florida in 6 years. What amount should Janet invest today so she can withdraw$50,000 at the end of each year for 20 years after she retires? Assume Janet can invest money at 6% compoundedannually.
- Jillian invested $2,000 six years ago at 4.5 percent interest. She spends all of her interestearnings immediately, so she only receives interest on her initial $2,000 investment. How muchinterest is she earning each year?Your sister just deposited $5,000 Into an investment account. She belleves that she will earn an annual return of 8.7 percent for the next 5 years. You believe that you will only be able to earn an annual return of 7.8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 5 years?An engineer planning for her retirement will deposit 10% of her salary each year into a stock found. The initial balance in her stock found (year 0) is S20,000. If her salary this year is $120,000 (end of year 1) and she expects her salary to increase by 5% each year, what will be the future worth of the found after 25 years if it earns 15% per year? O $4,202.290.77 O 5,480,462.35 O 5,315,867.58 O $4,138,818.64 O 3,543,911.72
- After retiring, Amina wants to be able to withdraw $30,500.00 every year from her account for 25 years. Her account earns 9% interest compounded annually.How much does Amina need in her account when she retires? Amina needs$________ in her account when she retires. How much total money will Amina pull out of her account? In total, Amina will pull out $________ from her account. How much of that money is interest? The amount of money that is interest is$________ .Ashley invests $250 a month in her 401(k) retirement account, which earns an 8 percent annual return. After 35 years, how much money will she have in the account over and above the amounts she will contribute through the years?Gail decided that in six years she would leave her job in publishing and retire to Arizona. What amount should Gail invest today, so that she will be able to withdraw $50,000 at the end of each year for 30 years after she retires? Assume she can invest money at 5%, compounded annually.
- Jean invests $1000 in Year 1 in a socially responsible fund, and doubles the amount each year after that (so the investment is $1000, 2000, …). (a) If she does this for 10 years, and the investment pays 4% annual interest, what is the future worth of her investment? (b) What are socially/ethically responsible investment funds? How do they differ from other types of investments? Why do people invest in them?Two people plan to invest $50,000. Matt is going to invest it in one lump sum and leave it in the account for 25 years to use for retirement. Sarah is going to invest $2000 per year for 25 years and will also use the money in the account for retirement. Is it reasonable to expect that Matt will have more money in his account than Sarah does in 25 years if both accounts earn the same interest?