Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a sinking fund paying a 9% interest rate compounded quarterly to accumulate $1,000,000 in 20 years? She needs to make quarterly payment of $
Q: John wants to have 30,000 in 10 years from investing with a 4% interest rate compounded quarterly.…
A: Present Value is the current value of all the cash flows which is to be received in the future which…
Q: John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a…
A: Formula used to calculate present value.
Q: Lori Willis plans to invest for retirement, which she hopes will be in 20 years. She is planning to…
A: Future Value = Present Value * (1+r)^n where, r = rate of interest per periods i.e. 6.25% n = no. of…
Q: John has $3200 monthly in extra discretionary funds that he would like to invest in his future…
A: Given Information Annuity amount = $3200 Made equal amount annuity by dividing into 2 parts Interest…
Q: Mickey & Minnie have $41 million in cash. Before they retire, they want the $41 million to grow to…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: An engineering student decides to accumulate $500,000 by her sixt pects to start by investing a…
A: Explanation of Concept:- Annual worth concept which is been used in the present problem states that…
Q: Jia has just won a $20 million lottery, which will pay her $1 million at the end of each year for 20…
A: The value which shows the equivalent worth of payment that is expected to be realized in future by…
Q: Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded…
A: Future value of any investment is the total of compounded value of the investments made initially…
Q: If Joe has $1,000 and invests it into a mutual fund that returns 10%, what willI be his Future Value…
A: Future value = Present value*(1+rate)^no of years
Q: Donald will receive $450,000 from his trust fund in 20 years from today. He assumes he could get a…
A:
Q: Sam wants to have $160,000 in four years from now. She found an investment, earning 6% per year,…
A: The amount that should be invested now to earn a certain sum of money in the future is equal to the…
Q: esslyn has just given an insurance company RM1 million, a sum of money she just received from her…
A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…
Q: Ms. Maya Manaco has P2,500,000 to invest for a ear. She can lend it to his brother who has agreed o…
A: Solution Given Alternative 1 Simple interest Rate 10% Present value 2500000…
Q: Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her…
A: Future value (FV) = $2,000,000 Rate of return (r) = 0.04 Period (t) = 35 years Present value (P0) =…
Q: Jasica Parker would like to have $48,000 to buy a new car in 7 years. To accumulate $48,000 in 7…
A: The monthly invested payment can be calculated using PMT function in excel PMT(rate, nper, pv, [fv],…
Q: Sarah Wiggum would like to make a single investment and have $2.0million at the time of her…
A: Amount required in 35 years or future value (FV) = $2,000,000 Period (p) = 35 years Rate of return…
Q: Betty wants to invest a monthly sum of money in order to accumulate R100000 in seven years. How much…
A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…
Q: uppose you are 40 years old and plan to retire in exactly 20 years. 21 years from now you will need…
A: The concept of time value of money will have to be used here. As per the concept of time value of…
Q: What amount should you invest quarterly for 30 years in a fund that earns 8% compounded quarterly,…
A: Time period = 30 years Interest rate = 8% Future Value = P5,000,000
Q: How much money should Jason invest today into a fund that earns interest at 4.50% compounded…
A: Present Value = [Payment / Interest rate] * [1 – (1/( 1 + interest rate )n)] Interest rate = APR…
Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could eam a…
A: Financial Management: In layman’s words, financial management is the management of the finance or…
Q: Consider the following independent situations. a. Mike Finley wishes to become a millionaire. His…
A: a. Future value factor = Future value / Initial fund = $1,000,000 / $92,296 = 10.83471 Find the…
Q: JL has P1,000,000.00. He plans to invest it and wants to grow his money to P2,000,000.00 after 5…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: Mrs. Santos placed an amount of 9,700 Php in an investment that pays an interest rate of 12%,…
A: Investment = 9700 Php Future value = 50,000 Php Interest rate = 12% Compounding = Semi annual
Q: If Rex wants to be a millionaire by the time he retires (45 years from now), how much does he need…
A:
Q: Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her…
A: Annual deposit (P) = RM 4,800 Annual interest rate (r) = 6% Number of annual deposits (n) = 15
Q: 1. Man wishes his son to receive 200,000 in 10 years from now. What amount should he invest if it…
A: Present value can be defined as the current value of the amount that will be received in future from…
Q: How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly? How…
A: To find the payment per quarter one can use “ pmt function “ in excel. To find the total money we…
Q: Your parents will retire in 16 years. They currently have $400,000 saved, and they think they will…
A:
Q: Tony wants to have $10,000 in 10 years after investing in an account that earns 4.6% compounded…
A: Future value is $10,000 Time period is 10years Interest rate is 4.6% Compounded monthly To find:…
Q: A woman desires to have $400,000 in a savings account when she retires in 20 years. Because of the…
A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…
Q: Anthony and Michelle Constantino just got married and received $28,000in cash gifts for their…
A: Data given: Amount received =$28,000 PV=Amount to be invested = $28000 /2 = $14000 r=Rate = 10%…
Q: Angel Rowe wants to receive $5,000 each year for the next 20 years. Assume a 8% interest rate…
A: Annuity payments are a series of regular payments that an investor makes into an investment account…
Q: Next, let's assume Denise is now thirty-five years old and thus has thirty years for saving toward…
A: Individuals save for future needs by putting aside money in various financial instruments. The money…
Q: Marie's current salary as a Systems Engineer is $100,000 per year. She's planning to place 18% of…
A: The future value of an investment is calculated by multiplying the invested amount by 1+r factor for…
Q: Morgan has $500,000 accumulated in her RRSP and intends to use the amount to purchase a 20-year…
A: Nominal rate of return is the stated rate of return on investment without considering expenses like…
Q: Sanka Blunck wants to receive $8,000 each year for 20 years. How much must Sanka invest today at 4%…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Carla Willis will invest $26,000 today. She needs $52,317 in 12 years. What annual interest rate…
A: Future Value=Present Value(1+i)^12 52317=26000(1+i)^12 (2.0122)^1/12=1+i i=1.06-1 i=6%
Q: 1.) Miller likes to invest in annuity that will pay him Php. 5000 at the end of each month for 5…
A: Note : As per the guidelines, only first question will be answered. Kindly post the second question…
Q: suppose Mary wants to have exactly $200,000 available for her child's education. Find the amount…
A: Calculate the present value as follows: Present value = Future value / (1+ rate)^years. As the…
Q: invest
A: Formula to calculate PV or amount to be invested now is: PV = FV/(1+r)^n Where PV is the present…
Q: Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her…
A: Future Value = $1.2 million Time Period = 30 years Rate of Return = 4%
Q: If boo start investing P30,000 now in a trust fund that pays 4% compounded quarterly. How much money…
A: Use the Excel FV function with the following inputs to determine the value of investment. RATE = 1%…
Q: How long will it take for Michelle's investment to be worth $55,000 if she presently has $32,000 and…
A: In the given question we require to compute the time period from the following details: Present…
Q: Suppose you want to use this fund to buy a $279,000 houseboat when you retire in 40 years. How much…
A: Future Value = $279,000 Interest Rate = 4.75% Time Period = 40 Years
Becky would like to be a millionaire in
years. How much would she need to invest
in a sinking fund paying
interest rate compounded
to accumulate
in
years?
She needs to make
payment of
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Determining the right amount of short-term, liquid investments. Ella and Aaron Martin together earn approximately 92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost 200,000. a. How much of their annual income do you recommend the Martins hold in some form of liquid savings as reserves? Explain. b. How much of their investment portfolio do you recommend they hold in savings and other short-term investment vehicles? Explain. c. How much, in total, should they hold in short-term liquid assets?Michiko would want to invest her funds in a trust fund that pays a simple interest rate of 2.5 percent per year on its principal. Consider the following scenario: she wishes to invest Php 200,000 for three years a. What do you think the future worth of her investment will be? b. How much interest will she earn?Consider the following independent situations. a. Mike Finley wishes to become a millionaire. His money market fund has a balance of $92,296 and has a guaranteed interest rate of 10%. How many years must Mike leave that balance in the fund in order to get his desired $1,000,000? b. Assume that Sally Williams desires to accumulate $1 million in 15 years using her money market fund balance of $182,696. At what interest rate must Sally’s investment compound annually?
- Thomas Finley wishes to become a millionaire. His money market fund has a balance of $183,204 and has a guaranteed interest rate of 10%. How many years must Thomas leave that balance in the fund in order to get his desired $926,000?Nick has been offered a unique investment opportunity. If Nick invests $10,400 today, Nick will receive $600 one year from now, $1,690 two years from now, and $12,400 ten years from now. (a) If the cost of capital is 6.7% per year, the NPV is $ SHould he take this opportunity? (b) If the cost of capital is 3.2% per year, the NPV is $ SHould he take this opportunity?Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her daughter fulfil her dreams when she reaches her age to marry. Assume her daughter is 3 years old and may get married in her 20s. Assume that Atita has $30,000 and wishes to invest that in a financial asset with a 9% rate of return per annum. Required: How would you define the amount of $30 000 and $150 000 in terms of the time value of money? ANSWER a (i): (answer box will enlarge as you enter your response) How long will she have to wait until she reaches the goal of $150 000? ANSWER a (ii): Mark will receive $13,500 from his parent at the end of each year for five years. He plans to invest them in a financial asset with an interest rate of 7.5%. How much money…
- Sarah Wiggum would like to make a single investment and have $1.7 million at the time of her retirement in 40 years. She has found a mutual fund that will earn 6 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.7 million? To have $1.7 million at retirement, the amount Sarah must invest today is $_________(Round to the nearest cent.) see attachment for PVIF tableCarl invests $10000, partly in a secure GIC at 5% interest per year and the rest in a mutual fund that he thinks will earn 7.5% interest per year. If he expects to earn the same amount of interest in both, how much did he invest at each rate?Ella and Aaron Martin together earn approximately $92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost $200,000. a. how much of annual income do you reccoment they hold in liquid savings as reserves? why? b. How much of their investment portfolio do you reccoment they hold in savings and other short term vehicles? Explain. c. How much, in total, should they hold in short term liquid assets? Determine the right amount of short term, liquid assets. (Explain.) (Explain.) How much in total in liquid assets:
- Jean invests $1000 in Year 1 in a socially responsible fund, and doubles the amount each year after that (so the investment is $1000, 2000, …). (a) If she does this for 10 years, and the investment pays 4% annual interest, what is the future worth of her investment? (b) What are socially/ethically responsible investment funds? How do they differ from other types of investments? Why do people invest in them?Ella and Aaron Martin together earn approximately $92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost $200,000. a. How much of their annual income do you recommend the Martins hold in some form of liquid savings as reserves? Explain. b. How much of their investment portfolio do you recommend they hold in savins and other short-term investment vehicles? Explain. c. How much, in total, should they hold in short-term liquid assets?Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? If Sarah can earn 4 percent annually for the next 35 years, the amount of money she will have to invest today is Round to the nearest cent
