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: 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: You are set to receive $2,190 annually (at the end of each year) forever with returns of 12.40% for…

A: Present value refers to the current date value of the annuity or the series of future cash flows.…

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

A:

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: You invest money in a fund that paid 9% simple interest paid annually. If it is worth $21,200.00 in…

A: Simple interest refers to the direct interest earned on the invested principal it does not include…

Q: You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy…

A: Present value of annuity (PVA) formula: PVA=A×1-11+rmn×mrm A=annuity r=rate n=number of years…

Q: Select the best answer for the question. 20. You want to invest money for three years in an account…

A: The objective of this question is to find out the present value of an investment that will grow to…

Q: Double your money-Rule of 72. Approximately how long will it take to double your money if you get an…

A: Step 1 Time value of money The idea of the time value of money (TVM) holds that a quantity of money…

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

Q: You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal…

A: Future value = fv = $2 million Time = t = 30 years Nominal rate = 11% Inflation rate = 5.5%

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: 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: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: The present value of all cash flows can be used to calculate the current value of an investment.

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: Double your money-Rule of 72 Approximately how long will it take to double your money if you get an…

A: The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed…

Q: You have $5000 you want to invest for the next 45 years. You are offered an investment plan that…

A: In this question, we are required to determine the future value after 45 years.

Q: Suppose that you plan to invest $1500 at the end of each of the next 9 years, and you want to have…

A: Rate of return refers to the minimum return to be earned by the investors on the initial investment…

Q: You want to invest in an annuity that will pay you $11,400 per year for the first 8 years and $1,000…

A: The compounding rate of interest is always more beneficial to the investor because it offers more…

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: Today, you decide to invest $7,000 for 29 years. If you can earn 9.05 percent for the first 19 years…

A: Here, Invetsment Amount $ 7,000.00Time Period of Invetsment29Interest Rate for first 19…

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 current value of a security that pays $165,500 per year for 10 years if similar…

A: The current value of security can be calculated as present value of all cash flows

Q: Approximately how long will it take to double your money if you get an annual return of 3.3%​,…

A: Time for Investment double = 72/ rate of return

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 invest $50,000 for three years that will earn 3.6 percent compounded continuously. What will be…

A: Given Information: Amount invested=$50,000 Interest Rate=3.6% compounded continuously Time(in…

Q: You are saving for retirement. You hope to haye $1,000,000 accumulated in 35 years, making equally-…

A: It can be calculated using PMT(rate, nper, pv, [fv], [type])   Rate The interest rate for the loan.…

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: If you wish to save $100,000 at the end of 5 years, how much will you need to invest each month if…

A: Compounding of interest means the interest rate will be applied on the accumulated principal plus…

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 the opportunity to purchase a perpetuity which pays $5,000 annually forever. If you require…

A: A perpetuity is a stream of fixed periodic cash flows ( annuity) of infinite duration

Q: What will be the value of your saving in 4 years with an interest rate of 10% if you invest $120…

A: Using excel FV function

Q: Double your money-Rule of 72. Approximately how long will it take to double your money if you get an…

A: The Rule of 72: It is a simple formula for determining how long an investment will take to double in…

Q: 2) You set up a 45-year investment plan with the intention of amassing 1,500,000 at the end of the…

A: Investment planning is the process of determining where you are financially in terms of the future…

Q: would you o the nearest whole dollar.) today . $12,000 in 6 years at 12 percent? Present value $1…

A: An annuity refers to a stream of cash flows occurring regularly at fixed periodic intervals.  The…

Q: Consider making an investment of $10,000 each year. If the first $10,000 investment is made at the…

A: Future value refers to an amount of a current asset at some future date effected by interest rates,…

Q: Let us assume that Batts will invest $30,200 each year for next 30 years. Assuming the interest rat…

A: Future value refers to the value of the current asset at some future date affected by inflation and…

Q: You have $68,513 you want to invest. You are offered an investment plan that will pay you 4.58…

A: Annual rate refers to the interest rate that is earned over the investment amount by the investors…

Q: Problem 1: You can choose between two different investments: (A) an annuity that pays $10,000 each…

A: Computation of present value of investments:  Interest rate is 5% Annuity: Hence, the present value…

Q: You are planning to save for retirement over the next 35 years. To do this, you will inves $870 per…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: Select the best answer for the question. 20. You want to invest money for three years in an account…

A: The objective of this question is to find out the present value of an investment that will grow to…