Question 2BYou need to save aside $320,000 for your retirement plan 10 years from now. You have a saving of $120,000 and is consider to put exactly an equal amount of money into Sustainable Investment Fund at the end of each month for 10 years to get 200 000 you still short of now. The fund is offering a rate of return 10.5 % per year, compounding monthly. Required: Calculate the monthly payment you need to contribute into Sustainable Investment Fund to get $200,000 after 10 years? If you change to contribute $1,000/month to that fund at the beginning of each month, how much money you would have in your account after 10 years? You are offered an investment that will pay $24 000 for the first year and then it will increase 4% each year. What is present value of this investment if the rate of return 13.5% applies?

A study that proves that the future worth of the money is lower than its current value due to…

Answered: Question 2B You need to save aside…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter2: Using Financial Statements And Budgets

Section: Chapter Questions

Problem 6FPE

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Question 2B

You need to save aside $320,000 for your retirement plan 10 years from now. You have a saving of $120,000 and is consider to put exactly an equal amount of money into Sustainable Investment Fund at the end of each month for 10 years to get 200 000 you still short of now. The fund is offering a rate of return 10.5 % per year, compounding monthly.

Required:

Calculate the monthly payment you need to contribute into Sustainable Investment Fund to get $200,000 after 10 years?
If you change to contribute $1,000/month to that fund at the beginning of each month, how much money you would have in your account after 10 years?
You are offered an investment that will pay $24 000 for the first year and then it will increase 4% each year. What is present value of this investment if the rate of return 13.5% applies?

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