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- Ashley projects that she can get $100,000 cash per year for 5 years on a real estate investment project. If Ashley wants to earn a rate of return of 9%, what is the maximum that she should pay for the investment? (rounded to the nearest dollar)A. $360,478 B. $446,429 C. $560,000 D. $388,965Delany wants $15,000 saved in 2 years to make a down payment on a house. How much money should she invest now at 7.7% compounded semiannually in order to meet her goal? Please show formula and stepsAfter working for years in her small business. Dr Ewere was finally making money. Since she was still worried about emergencies, she decided to put $185,750 in an investment for 4 years. Find the future value if it earns (a) 8%, per year compounded quarterly and (b) 4%, per year compounded semi annually. (c) Then find the difference between the two
- Mannu is a young personal financial adviser. Molly, one of her clients approached her for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options:Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly.Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly.Required: Work on question a, b and c onlya) Identify which Bank should Molly choose in Investment 1 by computing theeffective annual interest rate (EAR)?b) Calculate the amount of money Molly would accumulate in Investment 1…Mannu is a young personal financial adviser. Molly, one of her clients approached her for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options:Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly.Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly.Required: Work on questions d and e onlya) Identify which Bank should Molly choose in Investment 1 by computing theeffective annual interest rate (EAR)?b) Calculate the amount of money Molly would accumulate in Investment 1 after…Jennifer is planning a trip to Alaska in 5 years. She has calculated that she will need $15,000 to cover her expenses. Her bank offers money market investments at a rate of 4.5% compounded annually. What should Jennifer invest now to have the needed funds?
- Madison is thinking of buying an investment from PEP. If she purchases the investment, Madison will receive $1,000 every 3 months for 2 years. The first $1,000 payment will be made as soon as she buys the investment. If the required rate of return of Madison is 16%, what amount should she be willing to pay for this investment? a. 1,345.60 b. 7,002.05 c. 10,764.80 d. 1,368.57Alex wants to buy a shopping complex in Vancouver 3 years after completing his Masters. The complex will cost CAD 17,000,000 and he would need a 20% down payment after 5 years. To save for the down payment, Alex could deposit one lump sum today at a 6% annual compound rate. Alternatively, Alex can wait one year and make one lump sum deposit. Will Alex need more money to deposit if she does it now or after one year? How much more is required? (Use Formula Approach)Roxanne plans on going on vacation to Europe in four years. The trip will cost $4,000. She proposes to finance the trip by investing a sum of money now at 8% compounded annually. How much should Roxanne invest now in order to obtain her goal of $4,000? Answer the following questions: Fill in the factor that you used to solve the problem : How much should Roxanne invest now in order to obtain her goal (round up to the nearest dollar)?
- The Jeffersons have asked you what would be needed to fund the children’s future college costs. Assume each child will begin college at age 18 and graduate in four years. Assume current costs are $24,000 per year and are expected to increase by 5% per year and investments earn 7%. A. Assuming no existing assets are dedicated to college, what is the annual savings amount required to fund the children’s education? The Jeffersons’ goal is to have an amount at the beginning of the freshman year for each child that is sufficient to fund a serial payment covering the $24,000 of current costs of college adjusted for inflation for each of the four years of college. Please include your calculator keystroke inputs [PV, I/YR, N, FV, and PMT (if needed)] for each step of this calculation. Also include whether any PMTs are in the end mode or the begin mode. B. What would you say to the Jeffersons about their education funding situation? Write a script of a single paragraph as if you…Justine is thinking about purchasing an investment from RCBC Capital. If she buys the investment, Justine will receive P1,000 every three months for two years. The first P1,000 payment will be made as soon as she purchases the investment. If Justine's required rate of return is 16%, how much should she be willing to pay for this investment? a. P10,764.80 b. P7,002.05 c. P1,368.57 d. P1,345.60Holly wants to have $220,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of each year for the next 15 years if the funds can earn 4 percent. Use Appendix C to answer the question. Round your answer to the nearest dollar.$ If she can earn 5 percent, how much less will she have to invest each year? Use Appendix C to answer the question. Round your answer to the nearest dollar.$
