Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years? Multiple Choice O O $562.67 $602.86 $643.06 $416.79

Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years? Multiple Choice O O $562.67 $602.86 $643.06 $416.79

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

What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $90 per year? O a. 6.47% O b. 3.04% O c. 6.08% O d. 12.95% O e. 12.16%
Explain well all point of ququestion with proper answer .
Gayathri has RM5,000 now in her investment account. She wishes to have RM8,000 in her account after 9 years, but she was informed by the investment firm that she will have RM7,000 in her account in 8 years, what is the interest rate per year she gains from her account? Select one: a. 4.30% b. 3.81% c. 5.31% d. 6.05%
Your parents are giving you $270 a month for 4 years while you are in college. At an annual interest rate of 7.32 percent, what are these payments worth to you when you first start college? $10,645.37 $11,004.00 $11,205.65 $15,004.18 $10,832.13
Your parents will retire in 20 years and currently have $108,000 saved in a retirement account. They think they will be okay with $700,000 at retirement since your mom also has a pension and they should both get some money from Social Security. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? 7.02% 8.36% 8.97% 9.80% 10.31%.
1. Intermediate. Sydney is considering making a monthly investment for her son who will be five years old on his next birthday. She wishes to make payments until his 18th birthday and intends to pay £50 per month into an account yielding an APR of 12.68 per cent. She plans to start making payments into the account the month after her son’s fifth birthday. How much will be in the account immediately after the final payment has been made? a £18 847 b £18 377 c £17 606 d £18 610.
Your older sister deposited $50,000 today at 14 percent interest for 12 years. You would like to have just as much money at the end of the next 12 years as your sister will have. However, you can only earn 12 percent interest. How much more money must you deposit today than your sister did if you are to have the same amount at the end of the 12 years? Question 15 options: 9,863 10,458 7,120 8,321 11,832
You have collected $8,342 Your banker states that if you deposit these funds in her institution they will accumulate to $16,786 In twelve years. What is the implied rate that she is paying on this deposit? 50% 12% 5% 6%
On a whim you purchased a scratch-off lottery ticket at the gas station. It must have been your lucky day because you won $1,500,000. Being logical and rational you decide to invest the money at 6% for 11 years until you are ready to start a family. At the end of 11 years, how much will your investment be worth? Future Value of $1 Periods 2% 3% 4% 5% 6% 10 1.219 1.344 1.480 1.629 1.791 11 1.243 1.384 1.539 1.710 1.898 12 1.268 1.426 1.601 1.796 2.012 13 1.294 1.469 1.665 1.886 2.133 14 1.319 1.513 1.732 1.980 2.261 15 1.346 1.558 1.801 2.079 2.397 Future Value of Annuity of $1 Periods 2% 3% 4% 5% 6% 10 10.950 11.464 12.006 12.578 13.181 11 12.169 12.808 13.486 14.207 14.972 12 13.412 14.192 15.026 15.917 16.870 13 14.680 15.618 16.627 17.713 18.882 14 15.974 17.086 18.292 19.599 21.015 15 17.293 18.599 20.024 21.579 23.276 $2,847,000 $790,500 $22,458,000 $3,018,000
You would like to give your son $70,000 towards his college education 12 years from now. How much money must you set aside today for this purpose if you can earn 8% on your investments? B. $176.271.91 C. $27.797.96 A. $12.250.00 interest rate, you will triple your money in ately D. $3,688.65 E. $14.211.11
Assume that you own an annuity that will pay you $14,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $125,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? a. 11.20% b. 4.46% c. 4.87% d. 20.01% e. 5.90%
Assume your child will enter college in 10 years. The total cost of a college education is estimated to be $60,000 at that time. You have $10,000 to invest today. What is the rate of interest that you must earn on your investment to cover the cost of your child's education? A. 17.21% B. 13.55% OC. 19.62% D. 25.52%

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