When your uncle started work on his twenty-first birthday, he decided to invest money each month with the objective of becoming a millionaire by the time he reaches age 61 . If he expects his investments to yield 2% per annum, compounded monthly, how much should he invest each month?
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- When he started work on his twenty-first birthday, D. B. Cooper decided to invest money each month with the objective of becoming a millionaire by the time he reaches age 60. If he expects his investments to yield 9% per annum, compounded monthly, how much should he invest each month?Your goal is to retire 30 years from now and have investments worth $2.5 million at that time. Today, you have $211 in your investment account and plan on adding an additional $ 10,000 to that account each year. What annual rate of return must you earn on average to achieve your goal?An investor is considering an investment that will pay $2,150 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. How much should he pay today for the investment? How much should he pay if the investment returns are received at the beginning of each year?
- You believe you will need to have saved $593,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $113,000 in 5 years. 1) If the interest rate is 7% per year, what is the future value of your inheritance at retirement? 2) How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?You want to be a millionaire when you retire in 40 years. How much do you have to save each month if you can earn an annual return of 10.8 percent? How much do you have to save each month if you wait 10 years before you begin your deposits? How much do you have to save each month if you wait 20 years before you begin your deposits?You believe you will need to have saved $480,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $115,000 in 5 years. a) If the interest rate is 6% per year, what is the future value of your inheritance at retirement? b) How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?
- John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a 6% annual return investing his money elsewhere.Suppose the opportunity requires John to invest $13,200 today. What is the interest rate John would earn on this investment?You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year with the first investment made one year from now. You think you can earn 10.0% per year on your investments and you plan to retire in 43 years, immediately after making your last $5,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 20th withdrawal (assume your savings will continue to earn 10.0% in retirement)? d. If, instead, you decide to withdraw $300,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…William Jack and Sophia Rose are planning on their first child education. If they expect that college will cost RM150,000 per year in 18 years, calculate how much should the couple begin depositing annually at the end of each of the next 18 years to accumulate enough funds to pay one year of tuition 18 years from now. Assume they can earn a 6% annual rate of return on their investment.
- You are contributing money to an investment account so that you can purchase a house in six (6) years. You plan to contribute seven payments of $2,000 a year--the first payment will be made today (t = 0), and the final payment will be made six years from now (t = 6). If you earn 11 percent in your investment account, how much money will you have in the account six years from now (at t = 6)? Select one: a. $20,856 b. $15,350 c. $19,567 d. $17,412 e. $11,683Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 8% on your investments, how much would you have to deposit today to have $15,000 when you graduate?You want to retire soon. When you finally retire, you want your investments to provide you with an income of $150,00 each year for the next 40 years. If the annual interest rate guaranteed to be 6 percent or higher, what is the present value of that stream of payments (or how much of a deposit do you need in order to get that payment amount per year)?