You have $76,000 in your account that you want to grow to triple that amount in 25years. What annual rate of return is necessary to reach your goal? (Note: Enter youranswer is a decimal, not a percentage. For example, enter .0452 instead of 4.52%)Your Answer:Answer

Answer: Following information are given: Present value = $76,000 Time = 25 years Future value = 3…

Answered: You have $76,000 in your account that…

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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Calculating present and future values Use future or present value techniques to solve the following problems. Starting with $20,000, how much will you have in 12 years if you can earn 12 percent on your money? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. $ Calculate your answer based on the financial calculator. $ If you can earn only 6 percent? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. $ Calculate your answer based on the financial calculator. $ If you inherited $40,000 today and invested all of it in a security that paid a 9 percent rate of return, how much would you have in 25 years? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. $ Calculate your answer based on the financial calculator. $ If the average…
You are saving for retirement. You hope to have $1,000,000 accumulated in 35 years, making equally- sized annual payments in a "world" with expected returns of 4.5% over that 35 year period. To the nearest dollar, what is the expected size of your annual payments? O $45,000 O $29,857 O $57,270 O $13,577 O $12,270
5. Solve the following two independent scenarios: A. How much must be invested now to receive $30,000 for 10 years if the first $30,000 is received one year from now and the rate is 8%? Future Value PV FV Tables Factor Present Value ? ? ? PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345). Using the appropriate EXCEL spreadsheet, the answer = ? PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). B. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate? Future Value PV FV Tables Factor Net Present Value ? ? ? PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e.…
You want to be able to withdraw $5000 from an account at the end of each year for the next 12 years. How much money should you invest now into an account earning 5.5% interest per year, compounded annually, in order to fund the desired withdrawals? Assume the account is empty after the last withdrawal is made. Give the answer to 2 decimal places, and do not use the $ sign in the answer box. The amount to invest now is Blank 1. Calculate the answer by read surrounding text. dollars.
Double your money-Rule of 72. Approximately how long will it take to double your money if you get an annual return of 4.6%, 7.1%, or 10 4% on your investment? Approximately how long will it take to double your money if you get a 4.6% annual return on your investment? years (Round to two decimal places.)
You estimate that you can save $9,000 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for five years at 6 percent? I need help to use appropriate factor(s) from the tables provided when it comes to rounding the time value factor to 3 decimal places and final answer to 2 decimal places. Future value= ???
Hi There! I solved the problem below, but can you answer the question and put everything on an excel spreadsheet and show the formulas please for the questions below. You are offered the opportunity to put some money away for retirement. You will receive 10 annual payments of $5,000 each beginning in 26 years. If you desire an annual interest rate of 12% compounded monthly, answer the following two questions: How much would you be willing to invest today? How much would the money (that you will be willing to invest today) be worth at the end of your last payment (i.e., in year 35)? Amount that you would be willing to invest today = PV = $5,000/(1.01)26*12 + $5,000/(1.101)27*12 + $5,000/(1.01)28*12 + $5,000/(1.01)29*12 + $5,000/(1.01)30*12 + $5,000/(1.01)31*12 + $5,000/(1.01)32*12 + $5,000/(1.01)33*12 + $5,000/(1.01)34*12 + $5,000/(1.01)35*12 = $1,388.638 Amount that would the money worth at the end of your last payment = FV = $1388.64 * (1+ 0.01)35*12 = $90691.52
You have $68,513 you want to invest. You are offered an investment plan that will pay you 4.58 percent per year for the first 20 years and 6.81 percent per year for the last 21 years. How much will you have (in $) at the end of the two periods? Answer to two decimals. < Previous
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If I invest £100 and get back £300, what is the percentage return over. a. 5years? b. 10years? with working please

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You have $76,000 in your account that you want to grow to triple that amount in 25 years. What annual rate of return is necessary to reach your goal? (Note: Enter your answer is a decimal, not a percentage. For example, enter .0452 instead of 4.52%) Your Answer: Answer