You want to quit your job and return to school for an MBA degree 3 years from now,and you plan to save $5,900 per year, beginning immediately. You will make 3deposits in an account that pays 6.2% interest. Under these assumptions, how muchwill you have 3 years from today?a. $19,605.44Ob. $19,840.95c. $23,330.48d. $19,986.92e. $21,173.88

Future value is the compounded value of each cash flow.

Answered: You want to quit your job and return to…

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

See similar textbooks

Similar questions

8 You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a local bank that pays 9 percent annual interest. The client wants to deposit an amount that will provide her with $1,000,000 when she retires. Currently, she has $300,000 in the account. (EV of $1. PV of $1. EVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. eBook Print References Required: How much additional money should she deposit now to provide her with $1,000,000 when she retires? Note: Round your answer to nearest whole dollar. Additional deposit amount
You plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what rate of return must you earn? Question 5 options: 6.02% 5.24% 4.73% 7.55% 7.11%
Suppose you have $1,000,000 in savings account when you retire. Your plan is to withdraw $6,000 a month as retirement income from this account. You expect to earn annual interest of 5%, compounded monthly, on your money during your retirement. How many months can you be retired until you run out of money? A-210.83 B-262.59 C-220.27 D-285.14
You invested $4,800 into an account. Your balance is now $14,400. Your compound annual rate of return was 4.65%. How long ago did you open the account? Question 4 options: 25.1 years 26.4 years 24.2 years 27.6 years 28.1 years
Bha
Baghiben
You have $81,455,75 in a brokerage account, plan to deposit on additional $21,000 and you Dat the end of each future your year until account reaches $500,000, You expect to earn. D9% annually on the account. How long will it take to reach your goal? ΑΑΑΑΑΑΑΑΑΑΑΔΔΑΔ ΔΔΔΔ Δ Δ ΔΔΔΔΔΔΔΔΑ You just received an inheritance worth $200,000. You want to retive in 30 years and you don't plan to make any additional contributions. If you feed $1,000,000 in order to retire, what interest rate must you earn in order to reach your goal? $300 at the end of each of the An investment will 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 1. 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 1 Using the same information from question 5, what is the future value of the cash flow stream?
Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The account earns an annual interest rate of 1.4%. After the final deposit, they move the accumulated savings to a brokerage account and invest in the stock market, where they earn an average annual return of 6.9% for the following 16 years. How much will they have in the account at the end? O a. $131,280 O b. $404,155 O c. $137,311 O d. $296,336 e. $302,138 f. $279,603 g. $496,270 h. $249,511
You have just started working at a new job. You are making $3500 gross per month and want to save 5% of your gross earnings each month in a Roth IRA. You found an account that is averaging 6% APR. You plan to leave the money in the account for 20 years. How much will you have in the account after 20 years? A. $80,857.16 B. $23,465.46 C. $3,671.35 D. $77,249.74
You want to have $1,000,000 in your retirement account by the time you turn 65. You are currently 25 years old and have not yet started saving for your retirement. If your 401K from work claims the average annual growth is 6%, how much do you need to save each month to have $1,000,000 when you retire? A. $1,442.01 each month B. $502.14 each month C. $2,083.33 each month D. $104.33 each month

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS