Your uncle has a job that paid him the following year-end cash bonuses shown in the table below. Since he was a finance major in college, he invested all the bonuses he received in a stock mutual fund that earns 10% per year. How much would he have in his mutual fund account at the end of 2030? Year 2019 2020 2021 2022 Bonus $6,000 $8,000 $10,000 $15,000

Your uncle has a job that paid him the following year-end cash bonuses shown in the table below. Since he was a finance major in college, he invested all the bonuses he received in a stock mutual fund that earns 10% per year. How much would he have in his mutual fund account at the end of 2030? Year 2019 2020 2021 2022 Bonus $6,000 $8,000 $10,000 $15,000

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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11) Today is your 21st birthday, and you are opening up an investment account. Your plan is to contribute $2,000 per year on your birthday and the first contribution will be made today. Your 45th, and final, contribution will be made on your 65th birthday. If you earn 10 percent a year on your investments, how much money will you have in the account on your 65th birthday, immediately after making your final contribution?
Your father is considering purchasing an annuity that pays $5,000 at the beginning of each year for 5 years. He could earn 4.5% on his money in other investments with equal risk. What is the most he should pay for the annuity? 20,701 $21,791 $22,938 $24,085 $25,289
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A recent college graduate with 42 years to retirement can accumulate a large sum of money via disciplined, regular investments. If he/she invests $190 each month until retirement and earns an APR of 7.9% on his/her investments, the accumulated sum for retirement will be: O$757,628 $756,542 $759,226 $674,549 4
You would like to give your daughter $75,000 towards her college education 16 years from now. How much money must you set aside today for this purpose if you can earn 8 percent on your investments? Group of answer choices $28,417.67 $18,388.19 $29,311.13 $21,891.79 $20,270.17
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When you begin your new job, your employer says they will match any 401k deposits you make by 50% up to 5% of your overall salary annually. When you start your new job as a college grad, you will make $57600 per year and you decide to take full advantage of the matching by depositing 5% of your monthly salary every month. a) How much will YOU be depositing in the 401k each month from your salary? $ b) How much will YOUR EMPLOYER be depositingin the 401k each month? $ c) How much TOTAL will be deposited into your 401k each month? d) How much will you have in the account in 45 years if it pays 7.8% APR? $ e) How much total money will you put into the account after 45 years? f) How much total will the employer have put into the account after 45 years? $ g) How much total interest will you earn? $ h) If you choose NOT to take advantage of depositing money into the 401k because you feel you need that money to pay bills now, how much money will you be losing from your employer and interest…
Nikul
Answer and draw the cash flow diagram A man invests P 20,000 now for college education of his 2 year old son. If the fund earns 10% effective, how much will the son get each year starting from his 18th to 22nd birthday.
You plan to donate $2,500,000 to establish a fund to support the Feliciano School of Business at Montclair State. For that sum, your bank offers to establish a perpetuity that will pay $120,000 every year into the future. What is the rate the banker is offering on this deposit? 4.36% 20.83% 11.27% 4.80%
Y8 A person is planning for their future retirement and wishes to have a 10 year pension of 50,000$ per year to her descendants forever. Assuming 5% interest rate how much money they need in their savings account when their retirement starts in 20 years

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