Earn $500,000, with an investment portfolio that can generate 7% annual return. If your benificiary will need income for 20 years, how much life insurance should you purchase
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Earn $500,000, with an investment portfolio that can generate 7% annual return. If your benificiary will need income for 20 years, how much life insurance should you purchase
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityHow much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?Based on the number of years until your retirement, calculate the monthly savings required to build a portfolio of $500,000. Assume you are starting with zero savings, can earn 6 percent a year, and that you start saving on the first of each month. What if you could earn 9 percent a year but wanted to save $750,000 – what would you need to deposit into savings monthly? I am 32 years old.
- If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and $2,000 each in year 4 and year 5. If you require a 10% annual return, should you take the investment.You are scheduled to receive $5,000 in two years. When you receive it, you will invest it at 6.5 percent per year. How much will your investment be worth eight years from now? Can the excel and calculator solutions be provided?You intend to buy a vacation home in seven years and plan to have saved $50,000 for a down payment. How much money would you have to place today into an investment that earns 8% per year to have enough for your desired down payment?
- You are planning to save for retirement over the next 30 years. To do this, you will invest$700 a month in a stock account and $300 a month in a bond account. The return of thestock account is expected to be 10 percent, and the bond account will pay 6 percent.When you retire, you will combine your money into an account with an 8 percent return.How much can you withdraw each month from your account assuming a 25-yearwithdrawal period?You expect to receive $30,000 at graduation in two years. You plan on investing it at 9 percent until you have $165,000 How long will you wait from now?An investment product offers a monthly rate of return of 5%. If Amy invests $1,000 today for this product, how long does it take for Amy's money to grow to $1,500?
- Your investment advisor wants you to purchase an annuity that will pay you $35,000 per year for 10 years. If you require a 9% return, what is the most you should pay for this investment?You are scheduled to receive $44,000 in two years. When you receive it, you will invest it for 7 more years at 6.5 percent per year. How much will you have in 9 years.You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of $4,000 per year, yielding 7 percent. What will be the value of the retirement fund after 40 years?
