Your parents will retire in 19 years. They currently have $398,736, and they think they will need $1,804,897 at retirement. Assuming they don't save any additional funds, the annual interest rate they must earn to achieve their goal would be _______________%. Margin of error for correct responses: +/- .03(%).

Your parents will retire in 19 years. They currently have $398,736, and they think they will need $1,804,897 at retirement. Assuming they don't save any additional funds, the annual interest rate they must earn to achieve their goal would be _______________%. Margin of error for correct responses: +/- .03(%).

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

Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement. What anual interested rate must they earnto reach their goal, assuming they dont save any additional funds?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Your parents will retire in 18 years. They currently have $250,000 saved, and they think they will need $1,000,000 at retirement. What annual intrest rate must they earn to reach their goal, assuming they don't save any additional funds?
Your parents will retire in 19 years. Please answer the financial accounting question
What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds on these financial accounting question?
Suppose that you earn $50,000 annually. You expect expenses to drop by 22% for your family in the eventof your death. Currently, if you die, you want to provide for your family for at least 15 more years, and theapplicable after-tax and inflation return assumed is 5%. Using the earnings multiple approach provided inyour textbook, what would be the amount of life insurance that you should purchase?
Finding the Required Interest Rate * please show formula and steps. Problem: Your parents will retire in 19 years. They currently have $350,000 saved, and they think they will need $800,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they do not save any additional funds?
Laura needs to invest to help with her child's college fund. How much I would she have to invest to have $63,400 after 13 years, assuming an interest rate of 2.21% compounded monthly? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. $0
Sue plans to save $4899, $0, and $5624 at the end of Years 1 to 3, respectively. What will her investment account be worth at the end of the Year 3 if she earns an annual rate of 5.55 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
I am 40 years old. If you are going to retire at 65, post-retirement living expenses are $20,000 annual, an average annual market return of 6%, life expectancy of 90. How much do you need to save for your retirement? (Please use the TVM calculation to solve for this question, and your answers would be different because your age varies.)
This set is a series of calculations with small changes. Maria estimates she will need $35,000 per year in retirement. Social Security will pay $12,000 per year, so her savings must generate $23,000 per year for 20 years after she retires at age 67, based on actuarial tables for life expectancy. If the return on savings is zero, how much does she need at age 67m Oa. $460,000 Ob. $300,000 Oc $3,000,000 Od. $200,000
To help with a down payment on a home, Elsa is going to invest. Assuming an interest rate of 1.73% compounded annually, how much would she have to invest to have $36,800 after 7 years? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. $0 S oo E D

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