MATH201 W3 It's All About The Benjamins AssignmentCHill

It's All About the Benjamins! 3 You and your co-worker Benjamin have both just turned 22 and are having dinner to celebrate. You begin talking about 4 saving for retirement. Your company offers an invesment portfolio that has historically earned 11% interest, compounded 5 semi-annually. You both decide to invest in this portfolio, but you have different investment strategies. 6 7 Benjamin plans to start immediately. He has decided to invest a certain amount of money annually for exactly 8 years. At that point, Benjamin will stop investing in the account and will let the money grow until he turns 65. 8 9 10 You decide you'd rather wait until you are in a better place financially, so you are not going to begin investing until age 30. 11 You will invest the same annual amount as Benjamin and plan to invest that amount every year until you reach age 65. 12 13 You and Benjamin make a friendly bet to see who will have more money in their retirement account at age 65! 14 15 Part I 16 Choose…

Tom plans to buy a house. He notice that current interest rate is really high. Considering that the stock market is volatile, he decides to take out $100,000 from the stock markets and create a certificate of deposit account at a rate of 3.5%. He predicts that later when the house price drops, he can buy a very good single-family house with about $750,000. The down payment rate is 20%. Please predict the exact time when he can buy a house. Group of answer choices 14.33 8.47 14.66

Please show working.   Please answer a, b, and c   Your client is 35 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $7,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. $ _________  b. How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent. $ ________ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ ____________ Annual…

Don Hildebrand is trying to decide whether to invest money in a bank or in something a little riskier that will pay a higher return. One very simple investment promises to pay a minimum of 8% compounded annually, but he must leave all of the money and interest invested for 9 years. How much interest will Don earn during the 9 years if he invests $7,150 and the investment pays the minimum?

Your client is 26 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $4,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 12% in the future. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. $   How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent. $   She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $  Annual withdrawals if she retires at 70: $

Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio. Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision.Payoff Table   State of Nature Alternatives Good Economy Fair Economy Poor Economy Mutual Fund 1,0001,000 650650 270270 Stock Market 6,5006,500 4,7004,700 3,3003,300 CDs 1,5001,500 850850 710710 Bonds 650650 270270 205205   Step 2 of 2:  What is Monique’s potential payoff based on the the Hurwicz Criterion strategy and an α=0.35α=0.35?

2. Marjorie Yan recently retired from work and wants to use a portion of her retirement money for investment. She has two investment options, namely (1) a bond fund, and (2) a stock fund. Each investment would be for one year and will give a return to of 6% for the bond fund and 10% for stock fund. Whatever portion of her retirement money she commits for investment, she wants to invest at least 25% of that amount in the bond fund. Moreover, she wants to select a mix that will give her a total return of at least 7.5%. Marjorie wants to determine the percentage that should be allocated to each possible investment alternative to maximize * returns. 1 Add File

After her first finance class in WBS, Samantha started a Twitter campaign to convince Elon Musk to let her buy one of his shares in SpaceX (which is currently traded privately). She succeeded and managed to buy one share at a price of $169. She expects to sell this share at a price of $250 when she graduates 3 years from now. What is the internal rate of return of this investment? (Calculate it in annual terms and to the closest integer).

Geoff recently graduated from a state university with a degree in art history. He has no student loans and has saved $7,000 toward retirement while in school. He's heard rumors about the stock market being unstable right now, and he has friends his age who have seen their investment accounts go down in value. Geoff has decided to keep his money in a savings account until mutual fund returns look better; then he will invest the money. 1 2 3 4 Did Geoff make a good decision to keep his money in a savings account until the market goes back up? Why or why not? If he did put his money in the stock market instead of a savings account, should he leave it alone or take it out when the market goes down? Explain your answer. For long-term savings, what is the better option: Keep your money in a savings account or invest it into the stock market? Why? If Geoff came to you for advice about his money situation, what would you tell him?

You are thinking of building a new machine that will save you $3,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 2% per year forever. What is the present value of the savings if the interest rate is 9% per year? The present value of the savings is $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer MacBook Air

Suppose that Paolo is 45 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $12,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 8.00% return. Assume that this rate will be constant for the rest of his's life. Paolo would like to calculate how much money he will have at age 65. Using a financial calculator yields a future value of this ordinary annuity to be approximately Paolo would now like to calculate how much money he will have at age 70. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 65. Paolo expects to live for another 25 years if he retires at age 65, with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Paolo can withdraw retirement at age 65), assuming a fixed withdrawal each year and $0…

This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years Years until retirement: Amount to withdraw each year: Years to withdraw in retirement: Interest rate: 30 $ 90,000 20 8% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into In order to answer any of these questions, first we need to know how much your friend will need when she is ready to retire. Since this amount will be the Amount needed at retirement: a. The amount your friend must save each year to fund her retirement is: Amount to save each year: b. The lump sum your friend must deposit today to fund her retirement is: Lump sum deposited today: c. Your friend's annual deposit is: Employer's annual contribution: Amount to save each year now: $ 1,500

N. Ebriate, a college student at a party university, decides to forego beerdrinking and invest the $100 he saves at the end of each month in a mutualfund that is currently earning 11 percent annually. He has a job where heearns income and invests this money in a Roth IRA.a. How much will he have in his fund in 4 years on graduation?b. If he graduates at 22 and leaves this investment in the mutual fund withoutadding any additional funds, how much will he have at age 60?c. If he really enjoys his work and decides to leave the money in the fund untilage 75, how much will he have?d. If he never touches this mutual fund and dies at the age of 90, how muchwill he leave in his estate from only this investment?

Becky Scholes has $150,000 to invest. She wants to be able to withdraw $12,500 every year forever without using up any of her principal. What interest rate would her investment have to earn in order for her to be able to so?