Solve the following problems on a sheet of paper.What Have I Learned So Far?Solve the following problems on a sheet of paper.Your parents wanted to establish a travel fund that will provide them an annual traver1.allowance of P250 000 for 10 years when they retire, How much should they invest in atrust fund that earns 4% interest compounded monthly if they are to retire in 5 years?2. How much should a mother invest now for a long-term investment that offers 10% interestcompounded monthly if she desires to provide her son a 5-year college fund of P120 000annually, 6 years from now?

Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Your parents wanted to establish a travel fund that will provide them an annual travel 1. allowance of P250 000 for 10 years when they retire. How much should they invest t a trust fund that earns 4% interest compounded monthly if they are to retire in 5 years?

Your parents wanted to establish a travel fund that will provide them an annual travel 1. allowance of P250 000 for 10 years when they retire. How much should they invest t a trust fund that earns 4% interest compounded monthly if they are to retire in 5 years?

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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A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 20.00 years and pool the money into a savings account that pays 3.00% APR. They plan on living for 29.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $23,497.00 $187,441.00 $314,214.00 Yearly Contribution $1,000.00 $10,000.00 $15,000.00 APR 6.00% 7.00% 6.00%
Kevin deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $90,000$⁢90,000 in 1616 years. Assuming an APR of 3.7%3.7% compounded quarterly, how much of the $90,000$⁢90,000 will Kevin ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 25 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 60? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 60?-Select-You haveYour sister hasItem 3 the larger amount.
Your grandmother invested $1,000 for you the day you were born. How much will this investment be worth on your 30th birthday, assuming the investment earned 6% interest compounded quarterly?
Please provide detailed solution Your grandma wishes to provide P40,000.00 to your youngest brother on his 21st birthday. How much should she deposit every six months in a bank which pays 6% per year interest if the first deposit is made when the grandson is 3 ½ years old?
house's first contribution is made one year from today and his last is made the day he mo p00,000 per year. II Mil- retires, how much money must he contribute each year to his retirement fund? (Solving a comprehensive problem) Having just inherited a large sum of money, you are trying to determine how much you should save for retirement and how much you can spend now. For retirement, you will deposit today (January 1, 2016) a lump sum in a bank account paying 10 percent compounded annually: You don't plan on touching this deposit until you retire in five years (January 1, 2021), and you plan on living for 20 additional years. During your retirement, you would like to receive a payment of $50,000 on the first day of each year, with the first payment on Janu- ary 1, 2021, and the last payment on January 1, 2041(Complicating this objective is desire to have one final three-year fling during which time you'd like to track your down all the original cast members of Hey Dude and Saved by the…
A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a fund the amount of P 200,000.00 earning at 6.5% interest rate compounded monthly; on the 10th birthday another P 200,000.00 at an interest rate of 7.3% compounded monthly: on the 15th birthday another sum of money at 8% compounded monthly. If on the 18th birthday the son have a total withdrawable amount of P1.3M, how much is the 3rd investment?
Walter and Skyler wish to set up a trust fund for their new daughter, Holly, which will provide her with $2,700 at the end of every 6 months for 26 years. The first payment will be 18 years, 6 months from now and interest on the fund is 4.04% compounded semi-annually. How much should Walter and Skyler set aside today for Holly? $0.00 Round to the nearest cent
Mr. and Mrs. Megabucks would like to set up a college fund for their grandson. They want him to be able to withdraw $1,750 each month for the two years he will be in college. Their grandson is currently celebrating his second birthday. His first college withdrawal will be on his 19th birthday. The college fund will earn j12=2.4%. How much must they deposit today into the college fund? Your Answer: Answer
John deposit $400 monthly into a saving fund, 16 years later he will receive $100000, find out the interest rate per annual.
Gil decided to sell their farm and to deposit the fund in a bank. After computing the interest, he found out that he may withdraw P350,000 yearly for 4 years starting at the end of 7 years when it is time for him to retire. How much is the fund deposited if the interest rate is 3% converted annually?Given:Find:Solution:
Tom and Sandy have set up a sinking fund in order to have $21,000.00 in 5 years for their child's college education. How much should be paid monthly into an ordinary annuity earning 7.46% compounded monthly so that they reach their goal? How much interest is earned during the last year? (Note: Your answer is a dollar amount and should include a dollar sign)

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