You are thinking about retirement decide to put aside Rs 50,000 each year in a saving plan that eams 9% interest per annum. In 10 years, you will receivean inheritance gift from your grandparents Rs 1 million that can be invested.Required:1. How much money will you have accumulated 30 years from now?Ifyour goal is to retire with Rs 20 million of saving, how much extra do you need to save every year?

Annuity refers to series of equalized payments that are paid or received at start or ending of…

Answered: You are thinking about retirement…

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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You are planning to purchase a house for your son on his 21st birthday. He is now 11 years old. The house you will purchase for him will cost ¢300,000,000. You are thinking of two options. a.To deposit a lump sum which will grow to the amount required. b.To deposit each year a fixed amount to accumulate to the required amount. Required: If the interest rate is 15%, how much do you need for each option?
Urgent
You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ 181800 b) What will your monthly payments be if the interest rate is 6%? 1089.98 C) What will your monthly payments be if the interest rate is 7%? Submit Question
Problem 2. Dean Sundaram is expected to retire in 30 years and he wishes to accumulate $800,000 in his retirement fund by that time (t=30). If the interest rate is 12% per year, how much should Dean Sundaram put into the retirement fund each year (at the end of each year, from t=1 to t=30) in order to achieve this goal?
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show all excel formulas/ work answering the following: Saving For Retirement You are offered the opportunity to put some money away for retirement. You will receive five annual payments of $25,000 each beginning in 40 years. How much would you be willing to invest today if you desire an interest rate of 12%?
You want to buy a $202,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 5.55% interest for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much total interest do you pay? d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? e) How much money in interest will you save if you finance for 15 years instead of 30 years?
18. Calculating Future Values You have just made your first $5,000 contribution to your individual retirement account. Assuming you earn an annual rate of return of 10.2 percent and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?) LO 1
You want to buy a $205,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan at 4.15% interest for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much of the first payment is interest?

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