Your sister just deposited $6,500 into an investment account. She believes that she will earn an annual return of 9 percent for the next 8 years. You believe that you will only be able to earn an annual return of 8.4 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 8 years? Multiple Choice $273.90 $864.11 $232.97 $313.03 $293.46

Your sister just deposited $6,500 into an investment account. She believes that she will earn an annual return of 9 percent for the next 8 years. You believe that you will only be able to earn an annual return of 8.4 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 8 years? Multiple Choice $273.90 $864.11 $232.97 $313.03 $293.46

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

How much money does Suzie need to have in her retirement savings account today if she wishes to withdraw $25,000 a year for 3 years? She expects to earn an average rate of return of 13 percent. A. $59,028.81 OB. $65,419.81 OC. $71,533.33 OD. $85,160.98 E. $87,391.34
Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in interest from it over the next 12 years. How much money should Lily invest in this account to meet her goal? (Use I = Prt) a. $2,000.00 b. $1.670,40 $9.578.54 d. $6,030.27
Suppose you receive $500 in graduation money. You decide to put it into an account paying 5%. If you deposit $175 into that same account every month for 7 years, how much money will you have at the end? $14,700.00 B $15,200.00 $16,195.49 $18,266.53 (E) $25,482.80
Your grandmother just died and left you $112,500 in a trust fund that pays 6.3% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account? O a. $32,689.86 O b. $7,087.50 O c. $39,812.95 O d. $30,752.46 Oe. $24,085.01
Marco needs $175,000 six years from today. How much should Marco deposit today into an investment account that provides a 12% annual return in order to accomplish his goals? a. $89,523 b. $88,660 c. $85,487 d. $62,500
Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account? a. $3,087.50 b. $13,865.38 c. $10,120.08 d. $16,840.23 e. $13,019.14
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
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%
Fatema has decided to invest BD 1500 in a savings account paying 4% interest compounded quarterly. If she leaves his money in the account for 7 years, how much she will get back in total? a. BD1981.94 b. BD1881.46 c. BD1139.87 d. BD1919 Please answer fast I give you upvote
A father wants to set up a bank account that will pay his daughter $16,000 at the end of quarter (EOQ) 4 and $30,000 at EOQ 8. He will fund this account by making quarterly payments of $X from EOQ 1 through EOQ 7. If the quarterly percentage rate is 3%, what is the value of $X that must be deposited into the account? O a. 6,789.396 O b. 6,621.507 O c. 6,240.157 O d. 6,082.880 O e. 6,123.852
Your first child was just born and you want to set up an annuity due savings plan to finance her college education. Your financial institution pays 3.15% interest. If you deposit $1,000 today, and make additional $1,000 deposits every year for the next 17 years, how much will accumulate in the account in 18 years? O $23,733.86 O $25,485.19 O $24,611.49 O $24,481.48
You want to have $10,500 saved 8 years from now. How much less can you deposit today to reach this goal if you can earn 7 percent rather than 5 percent on your savings? Multiple Choice $1,007.94 $995.72 $1,023.90 $1,036.34

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