AronscriptSuppose someone wants to accumulate $50,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume thecompounding and payment periods are the same.The person deposits $140 per month into an account with an APR of 6%Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)is less than the goal of $50,000.A. No, because the amount that will be in the college fund, $OB. Yes, because the amount that will be in the college fund, Sis more than the goal of $50,000

Future value is the estimation of current value of future cash flows that are likely to be received…

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Find the required value for each problem. Show the formula used and the counts for each problem.1. Jane Morrison is planning to invest $ 25,000 today in a mutual fund that provides a yield of 8% compounded annually. What will the investment be worth in ten years? 2. Ramón Rivera is investing $ 7,500 in a CD from a bank that pays 6% interest compounded annually. How much will he have earned at the end of five years? 3. María Lebrón is considering an investment that pays 7.6% interest compounded annually. How much would she have to invest today if she expects this investment to bring her $ 25,000 in six years? 4. Elizabeth Terrier wants to accumulate $ 12,000 after 12 years. If the annual compound interest rate paid by her savings account is 9.25%, how much money would he have to deposit in her account today to reach her goal? 5. Carolina Carlo needs to decide whether she accepts a $ 17,000 bond today or waits two years and receives $ 20,100. The CAGR she could invest in is 6%. What…
For TVM calculator: Write each known variable’s value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable’s value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Donald is looking to invest in an account earning an interest rate of 1.75% compounded weekly and make weekly payments. If he wants $21,000 in 10 years, what do his payments need to be? N=520 I= 1.75 PV=? PMT=? FV= 21,000 P/Y=52 C/Y=52 Missing Variable Value __________________ Context Sentence:
RATE OF RETURN. You have $5,000 excess cash to invest after you fully funded your emergency fund. You can choose to use the cash on a T-bill that can be purchased for $4,500 (maturing to value at $7,000 after one year) or you can buy two CDs for $2500 each (that can be purchased with a guaranteed 4.5% return after 12 months). Which will give a better return (in percentages)? Show work.
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You expect to receive $29,000 at graduation in two years. You plan on investing it at 10 percent until you have $164,000. How long will you wait from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 10% annual interest rate, compounded quarterly, in order to have $30,000 in the fund at the end of 10 years? Question content area bottom Part 1 They should deposit $enter your response here. (Round up to the nearest cent.)
can you solve in the excel file please. Thanks 2. ABC Lottery Corporation runs the "Millionaire Life" lottery. The winner of the Grand Prize can choose either $1,000,000 per year for 25 years or a single cash payment of $17,000,000. Which option should be chosen if the payments are made at the beginning of each year and, on low-risk investments, money can earn 3.2% compounded annually?
Set up a system of equations and then solve using inverse matrics. An investor has found two investment that he wants to invest in. The first one pays 11% per year and a more risky investment pays 19% per year. He has $42,000 to invest and would like an annual income of $7,180.00 per year from his investments. The amount invested at 11% is $ The amount invested at 19% is $
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You wish to establish a permanent scholarship at Bond University providing a worthy student with $1000 annually. If invested monies generate an 8% return, how much is needed in the scholarship fund?
Your younger sibling asks you to borrow $20. You, a smart financial professional, agree but also charge interest on the $20. You plan to collect $5 from your sibling each week for 8 weeks to repay the initial loan. What is the NPV of this project, assuming you invest the $5 at 12%? a. $4.84 b. $2.11 c. $0 d. $6.88
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