With an annual gross income of AUD100,000, Oscar intends to make a 12% contribution towards an accumulation superannuation plan (including both employer compulsory rate and employee voluntar rate). If the investment return is 4% per annum and assuming contributions are made annually, what the projected balance (approximately) of Oscar's superannuation account in 25 years if the starting balance is zero today (ignore taxes and fees)? Select one: O A. 100,000 B. 200,000 C. 500,000 D. 300.000

With an annual gross income of AUD100,000, Oscar intends to make a 12% contribution towards an accumulation superannuation plan (including both employer compulsory rate and employee voluntar rate). If the investment return is 4% per annum and assuming contributions are made annually, what the projected balance (approximately) of Oscar's superannuation account in 25 years if the starting balance is zero today (ignore taxes and fees)? Select one: O A. 100,000 B. 200,000 C. 500,000 D. 300.000

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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Similar questions

Your employer will give you a raise in an annual salary of $10,000 if you pass a Professional Engineering exam. Assume that you can work for the company for n years. Use the discount rate (r) of 8% per year. a. What is PV of the raise for n = 35? b. What is AE of the raise? c. Redo part a for n = ∞.
(Present-value comparison) You are offered $100,000 today or $340,000 in 15 years. Assuming that you can earn 14 percent on your money, which should you choose?
You are offered a $3,360,000 retirement package to be given in $120,000 payments at the end of each of the next 28 years. You are also given the option of accepting a $1,190,000 lump sum payment now. Interest rates are at 8.3% over the next 28 years. Which is a better option? A- the offered annual payments of $120,000 b- the lump sum of $1,190,000 c- they are the same d cannot be determined
Assume that you contribute $5,000 per year to a retirement plan for 20 years. Then you are able to increase the contribution to $7,500 per year for another 20 years. Given an 8.0 percent interest rate, what is the value of your retirement plan after 40 years? Hint: This is equivalent to saving $5,000 each year for 40 years (from year 1 to year 40) and $2,500 each year for 20 years (from year 21 to year 40) O $$1,455,270 O $1,409,688 O $$1,492,875 O $1,411,904
$8000 will cost now for installing a printing machine, but it will save $2200/year for 5 years. The salvage value of printing machine is estimate as $1500. Calculate the present worth of printing machine while i=-10%. MUST draw the CFD or SHOW transactions at each point before you jump into main calculation.
Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years the student pursues a PhD. If the annual interest rate is 3% and the student has a 10-year repayment program, what are the student's monthly payments on the loans after graduation? (Round your answer to the nearest cent.)
Your retiring will be in 2036. You need to invest some money so that you can earn 10,000 per year for the next 20 years. If the rate of interest is 8% compounded annually, what is the amount of the current investment? $98,181 $90,181 $88,181 $80,181
(b) If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10 years, what sum can she accumulate at an interest rate of 8% interest computed on a yearly basis?
You are looking at two investment options, A and B. Investment A is a 15-year annuity that needs an end-of-month payment of $1,100 and has an APR of 9% compounded monthly. Investment B is also a 15-year investment, but a lump sum investment that has as an APR of 8% compounded daily. How much money do you need to invest in B today as a single lump sum amount if you wish to have the same wealth as in Investment A in 15 years? If Investment B, with 8% APR compounded daily, gave you the option of investing a constant amount at the end of every six months, what would this amount be in order to give you the same wealth as in A at the end of 15 years?
Say that you want to establish a scholarship fund that will make fixed payments forever. To fund the scholarship, you plan to make 12 annual contributions of $9.9k to an investment account with an expected return of 6.0% interest annually. Your first contribution occurs today. If the scholarship fund makes its first payment two years following the last contribution, then what is the fixed annual payment that the scholarship fund will award? (Round to the nearest dollar)
You have your choice of two investment accounts. Investment A is a 7-year annuity that features end-of-month $2,900 payments and has an APR of 6 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an APR of 6 percent, also good for 7 years. How much money would you need to invest in B today for it to be worth as much as Investment A 7 years from now? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value
Your employer automatically puts 5 percent of your salary into a 401(k) retirement account each year. The account earns 8% interest. Suppose you just got the job, your starting salary is $50000, and you expect to receive a 3% raise each year. For simplicity, assume that interest earned and your raises are given as nominal rates and compound continuously. Find the value of your retirement account after 35 years Value = $

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