You are 22 and inherit 60000 from your grandmother If you wish to purchase a 120000 camper to celebrate your 30th nirthday what compound annual interest rate ofcreturn must you earn
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- When your son is born you want to determine what lump amount would you have to be paid into an account bearing interest of 10%/yr to provide withdrawals of $10,000 on each of your son's 18th, 19th, 20th, and 21st birthdayYour grandmother invested $1,000 for you the day you were born. How much will this investment be worth on your 30th birthday, assuming the investment earned 6% interest compounded quarterly?Suppose you have a 1-year old daughter and you want to provide R81 000 in 19 years towards hercollege education. You currently have R2 000 to invest. What interest rate must you earn to havethe R81 000 when you need it?
- You are 20 years old and inherit $70,000 from your grandmother. If you wish to purchase a $112,400 boat to celebrate your 27th birthday, what compound annual rate of return must you earn? Use Appendix A to answer the question. Round your answer to the nearest whole number. %To accumulate $100,000 for your child's 18th birthday, you need to invest a certain amount annually, excluding the 5th birthday deposit. The first deposit is made the day your child is born. To find this amount (X), considering a 8% annual rate of return:Paul Havlik promised his grandson Jamie that he would give him $8,500 9 years from today for graduating from high school. Assume money is worth 6% interest compounded semiannually.What is the present value of this $8,500? Present value –
- Willie deposits a fixed monthly amount into an annuity account for his child’s college fund. He wishes to accumulate a future value of $125,000 in 15 years. Assuming an APR of 3.5% how much money should Willie deposit monthly in order to reach his goal. How much of the $125,000 will Willie ultimately deposit in the account, and how much is interest earned?Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest compounded yearly. They want to spend all of it before they die. If they plan to live 15 more years, how much should they withdraw at the end of each year to accomplish their goal?1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year beginning at age 35, and receives a “net” 7.00% annualized return, how much money would she accumulate by age 65?
- Your grandmother left you an inheritance that pays $440 at the end of each year for a total of 12 consecutive years. However, because of your young age, the payments will not begin until the end of 5 years. If the interest rate is 3.00%, what is the equivalent value of your inheritance today?You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 20 and make the contributions for 15 years. Your twin sister does the same starting at age 30 and makes the contributions for 30 years. Both of you earn 6 percent annually on your investment. What amounts will you and your sister have at age 60? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar. Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 60? the larger amount. -Select-In December 2020 Sally purchased an annuity that pays her $1,000 per month for 16 years. She paid $150,000 for the annuity. Of the $12,000 Sally received in 2021, how much will she include in her gross income? $9,375 $2,625 $12,000 $3,600 $0