You have $81,455,75 in a brokerage account,plan to deposit on additional $21,000and youDat the end of each futureyouryear untilaccount reaches $500,000, You expect to earn.D9% annually on the account. How long will it taketo reach your goal?ΑΑΑΑΑΑΑΑΑΑΑΔΔΑΔ ΔΔΔΔ Δ Δ ΔΔΔΔΔΔΔΔΑYou just received an inheritance worth $200,000.You want to retive in 30 years andyou don'tplan to make any additional contributions. If youfeed $1,000,000 in order to retire, what interestrate must you earn in order to reach your goal?$300 at the end of each of theAn investment willразnext 3 years, $150 at the end of Year 4, $500at the end of Year 5, $100 at the end of Year 6, and1.require a $400 payment at the end of Year 7. If otherinvestment of equal risk earn 7% annually, what is thepresent value of the cash flow stream 1Using the same information from question 5, whatis the future value of the cash flow stream?

Present value refers to the discounted value of all future cash flows with the defined interest rate…

You have $81,455,75 in a brokerage account and you plan to deposit on additional $21,000 at the end of each future. year until your account reaches $ 500,000, You expect to earn. ▷ 9% annually on the account. How long will it take to reach your goal? You just received an inheritance worth $200,000. You want to retive in 30 30 years and you don't plan to make any additional contributions. If you reed $1,000,000 in order to retire, what interest rate must you earn in order to reach your goal? An investment will $300 at the end of each of the раз next 3 years, $150 at the end of Year 4, $500 at the end of Year 5, $100 at the end of Year 6, and require a $400 payment at the end of Year 7. If other investment of equal risk earn 7% annually, what is the present value of the cash flow stream ? Using the same information from question 5, what is the future value of the cash flow stream?

You have $81,455,75 in a brokerage account and you plan to deposit on additional $21,000 at the end of each future. year until your account reaches $ 500,000, You expect to earn. ▷ 9% annually on the account. How long will it take to reach your goal? You just received an inheritance worth $200,000. You want to retive in 30 30 years and you don't plan to make any additional contributions. If you reed $1,000,000 in order to retire, what interest rate must you earn in order to reach your goal? An investment will $300 at the end of each of the раз next 3 years, $150 at the end of Year 4, $500 at the end of Year 5, $100 at the end of Year 6, and require a $400 payment at the end of Year 7. If other investment of equal risk earn 7% annually, what is the present value of the cash flow stream ? Using the same information from question 5, what is the future value of the cash flow stream?

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

You have just inherited $100,000 as a lump-sum amount from your distant aunt. After depositing the money in a practically risk-free certificate of deposit (CD) earning 5% per year, you plan to withdraw $10,000 per year for your living expenses. How many years will your $100,000 last in view of these withdrawals? (Hint: It is longer than 10 years!)
You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into an account paying 3%, compounded annually. Assuming you are now 25 and can spare $1,400 per year, how much will you have when you retire at age 65? (Round your answer to the nearest cent.)_____$
You decide to purchase your own property. The estimated purchase price is $1,600,000. You obtain 90% financing from the bank, 7% fixed rate for 25 years. How much do they have to pay the bank every year? How much do you still owe the bank in 14 years?
You just retired to find your retirement savings account has reached $1,000,000. The savings account has a rate of 3.1 % compounded continuously. Your lifestyle requires you to live off $50,000 each year to be comfortable. If at retirement age you are 65 years old, how old will you be when the money runs out?
Suppose your parents have just retired and have $1 million in a retirement account. For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted?
You invest $2000 today at 7% per year. If you leave thisfor your grandchildren by not touching the account for80 years, what is the amount of interest on interestearned for this investment? Please explain how to do this problem in the financial calculator. The most important thing is that I understand how to solve the problem on my own
You have $58,138.29 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $240,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.
You intend to buy a vacation home in seven years and plan to have saved $50,000 for a down payment. How much money would you have to place today into an investment that earns 8% per year to have enough for your desired down payment?
Your parents will retire in 17 years. They currently have $310,000 saved, and they think they will need $2,200,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. %
You want to be able to withdraw $20,000 from your account each year for 30 years after you retire. You expect to retire in 25 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
You've just invested $770,000 into Far Far Away Investments. This company promises to pay you and later all your future heirs a fixed amount of money once a year forever. The company earns a 5.7% annual return. How much should you expect you and all your future heirs to receive annually?
3. Your parents will retire in 27 years. They currently have $400,000 saved, and they think they will need $1,850,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. 4. If you deposit money today in an account that pays 12.5% annual interest, how long will it take to double your money? Round your answer to two decimal places.= years 5. You have $10,043.17 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $230,000. You expect to earn 13% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.= years 6. What's the future value of a 9%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the…

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