Edward wants to take a long trip around Europe 7 years from now. He estimates that he will need $12,000 to finance the trip. Edward has found a stock portfolio that generates a 8% yearly rate of return. How much does Edward need to invest today to afford the trip? Round to the nearest dollar, do not enter a dollar sign.
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- Let's say that you invest $8000 at 3.1 percent annual interest for 6 years. What will its value be? Carefully follow all numeric directions. Round intermediate steps to four decimal places and final answers to two.A company has an investment project that would cost $10 million today and yield a payoff of $15 million in 4 years. What would be the break-even interest rate?After learning about finances in grade eleven, you decide to put money where your mouth is and at the end of every month invest $100 into the stock market for the next 48 years. Assuming the market returns 8% per annum, compounded monthly, how much will you have after 48 years?
- Gabe purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would be his return per half year period?Betty will need $12,000 in five years to pay for a major overhaul on her tractor engine. She has found an investment that will provide a 5% return on her invested funds. How much does Betty need to invest today so she will have her overhaul funds in five years?On your 23rd birthday you decide to invest $4,500 (10% of your annual salary) in a mutual fund earning 7% per year. You will continue to make annual deposits equal to 10% of your annual salary until you retire at age 62 (40 years after you started your job). You expect your salary to increase by an average of 4% each year during this time. How much money will you have accumulated in your mutual fund when you retire?
- You have a five year old child and you have been thinking about how you are going to help her pay her way through college. You look up some safe investments; like savings bonds. Given that the future pay-off of the bond is $8,500 over five years at 5% interest, what should you expect to presently pay (present value) for the bond? True Car of Columbia, SC advertised a Ford EcoSport (2019) at $23,178. The EcoSport is a sporty smaller SUV that is perfect for the recent college graduate/young professional. Given that the repayment period is 5 years and the interest on the loan is 3.99%, what are the likely monthly car payments on this loan? The average median 2019 price of a home here in Columbia, SC was around $145,000. That price is not bad at all (surprisingly good!!). Given that the interest on the housing loan is roughly 3.92% and the deal is over 30 years, what should you approximately expect your monthly payments to be if you decide to purchase a house…Bobby has heard the importance of saving early for retirement. He wants to retire in 35 years. But he really likes traveling. Right now, he spends, on average, about $600 a month traveling. He is trying to decide if he should start saving his travel money for retirement now, or if he can continue traveling a few more years before beginning to save. Assume that he can find an annuity that pays 4.75% compounded quarterly. What is his future value if: a) He starts saving now? N: P/Y: I%: C/Y: PMT: End or Begin $54,911.29 $658,935.54 $823,669.42 1,000,000.00Ab 4 Economics Nabil is considering buying a house while he is at university. The house costs $200 000 today. Renting out part of the house and living in the rest over his five years at school will net, after expenses, $2000 per month. He estimates that he will sell the house after five years for $210 000. If Nabil’s MARR is 6 percent compounded monthly, should he buy the house? Use annual worth.
- Write the formula which is used to calculate the annual effective yield?As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) AmountFinanced InterestRate Termof Loan(years) MonthlyPI AnnualPropertyTax AnnualInsurance MonthlyPITI $260,000 9.50% 25 $ $6,573 $2,126 $Answer both part 1 &2 i will rate PART A: Ahmed make an annual contribution of $3,000 to his savings account at the end ofeach month for 10 months. If the account earns 7% interest monthly, how much can be atthe end?PART B:Ahmed buy a gold for $2000 and sell it for $2500. it takes 7 years, what would bethe compound annual rate of return on your investment?