You want to have $3.5 million in real dollars in an account when you retire in 50 years. The nominal return on your investment is 8 percent and the inflation rate is 3.5 percent. What real amount must you deposit each year to achieve your goal? A. $20,569.90 B. $6,100.00 C. $21,598.40 D. $21,392.70 E. $19,541.41

Q: rate is 0 during the entire time period, how much is the above income stream worth right now? Please…

A: Present Value of Annuity: It represents the present worth of the future annual cash flows and is…

Q: You want to save $800 a month for the next 30 years and hope to earn an average rate of return of 12…

A: The equal series of payment will be annuity. To compute the money after certain point of time in…

Q: 1On the day you retire you have $500,000 saved. You expect to live another 30 years during which…

A: Time value of money refers to the concept that money available today is worth more than the same…

Q: fane has $1L025 and plan to purchase a 5-year certificate of degosit KD tht y interest, conmpounded…

A:

Q: How much would you be willing to pay today for an investment that would return P1,250 each year for…

A: The amount to be paid today is calculated as the present value of annuity

Q: upon graduation you get a new job and start an investment program. You invest 8000 per year starting…

A: Annual deposit=$8000Period=n=35yearsInterest rate=9%Inflation=3%

Q: You have the opportunity to purchase a security that will pay you $100,000 when it matures in three…

A: Solution:Rate of return refers to the return earned by the investor on per annum basis.So, rate of…

Q: Assume your goal in life is to retire with four million dollars. How much would you need to save at…

A: The amount needed to save annually can be calculated with the help of future value of annuity

Q: How much should you invest each month in order to have $400,000 if your rate of return is 3.2%…

A: We need to use future value of the ordinary annuity formula to calculate monthly payment to get the…

Q: ou just paid $350,000 for an annuity that will pay you and your heirs $18,400 a year forever. What…

A: Rate of return on investment depends on the amount of money paid today for annuity and amount you…

Q: You currently have $8,700 to invest. You can invest the full amount now for a period of 9 years at…

A: Final Value after 9 years = $15,000Initial Value = $8,700Number of years (n) = 9

Q: You estimate that by the time you retire in 35 a. If the interest rate is 9.5% and you live 15 years…

A:

Q: Suppose you earned a $330,000 bonus this year and invested it at 8.25% per year. How much could you…

A: It is a case of calculating the annuity of withdrawals. The withdrawals are done on an annual basis…

Q: You have $13,900, you decided to invest it in an investment plan that will pay you 13% interest for…

A: Using the compounding technique, the future value of a sum has been used to know the future value of…

Q: You are targeting a retirement portfolio value of $2,500,000 in 20 years. You plan to make annual…

A: Using excel PMT function

Q: Acme Insurance is offering you a perpetuity that will pay you and your heirs $500,000 per year…

A: A perpetuity is a type of financial instrument or investment that provides a fixed stream of cash…

Q: Your insurance agent is trying to sell you an annuity that costs $80,000 today. By buying this…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: What is the present value of an investment that promises to pay the investor $6,500 at the end of…

A: Per year payment(annuity) = $6500 Time =9 years Rate =14% *end of the year payment

Q: How much would $1. growing at 6.8% per year, be worth after 75 years? Select the correct answer. O a…

A: We need to use future value formula below to calculate worth after 75 years.FV =PV(1+i)nWhereFV…

Q: Assume you invest $19,000 today. How much will you have in six years at an interest rate of​ 9%?…

A: Formula to compute the Future value is as follows: FV=PV(1+r)n where, FV=Future valuePV =Present…

Q: How much do you need to invest today to receive $7,500 in 8 years, if you can earn 3% on your…

A: INFORMATION: RATE 3% YEARS 8 PMT (MONTHLY DEPOSIT) 0 FUTURE VALUE $7,500

Q: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: 5. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year…

A: An annuity refers to a fixed stream of payments. In this case the annuity amount is $100,000 per…

Q: Baghiben

A: The objective of this question is to calculate the future value of an annuity due. An annuity due is…

Q: Assume you can earn 8.6% per year on your investments. a. If you invest $190,000 for retirement at…

A: Future value of the amount can be calculated as the amount of deposit made and amount of compounded…

Q: What is the most you would be willing to pay for an annuity that provides you with $13,700 at the…

A: Here,Annuity Received  (PMT) is $13,700Interest Rate (r) is 5.5%Time Period (n) is 3 years

Q: What rate of return would you need if you wanted to accumulate $1,000,000 in 25 years and invest…

A: Rate of return: It implies to the rate that is often expected or charged by the investor from the…

Q: Consider a growing perpetuity that will pay $100 in one year. Each year after that, you will receive…

A: Perpetuity means a state of being forever, with no end or for an indefinite period of time. Here,…

Q: Finance Approximately how much would you need to invest today, to receive $280 in ten years, if you…

A: Future Value is $280 Time period is 10 years Interest rate is 10% To Find: Present Value

Q: You estimate that by the time you ret years, you will have accumula a. If the interest rate is 9.5%…

A: The real rate of return is a financial measure of the profit or loss of an investment that takes…

Q: You found out that now you are going to receive payments of $9,000 for the next 11 years. You will…

A: Annual Payments = $9,000 Time period = 11 years Annual interest rate = 11%

Q: You are opening an investment account that will earn 6.5% compounded annually.  You will invest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: what annual rate of return would your investment account need to generate if you make no future…

A: The annual rate of return: It is the sum of money earned over a period of 12 months period on…

Q: You are valuing an investment that will pay you nothing the first two years, $19,000 the third year,…

A: Present Value is the current price of future value which will be received in near future at some…

Q: You currently have $10,000 in your bank account. You will invest this $10,000 and $750 every quarter…

A: For calculation of annual rate of return we need to calculate rate per quarter first. The future…

Q: How much do you need to invest today if you will also invest $2,700 at the end of every year for 39…

A: Accumulated amount (AV) = $1,000,000 Rate of return (r) = 0.065 Annual deposit (D) = $2,700 Period…

Q: "You have just received a windfall from an investment you made in a friend's business. She will be…

A: Present value is the equivalent value of the future cash flow based on time value of money and…

Q: Your friend offers you an investment opportunity that would yield $100 per year for the next 3…

A: Solution:- Present value means the value of cash flows from the project in today’s terms i.e.…

Q: Suppose you inherited $1,135,000 and invested it at 8.25% per year. How much could you withdraw at…

A: The objective of the question is to find out the amount that can be withdrawn at the beginning of…

Q: What is the future value of an investment

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: You want to retire in 40 years as a millionaire (i.e., to have $1,000,000). If 6% is the average…

A: In the given question we need to calculate the monthly payment from following details : Future value…