You would like to save up $1184 to travel in 4 years. To do so, you will buy a savings bond that has an interest rate of 15.3%. How much must you invest in the bond today to reach your goal? Answer:
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You would like to save up $1184 to travel in 4 years. To do so, you will buy a savings bond that has an interest rate of 15.3%. How much must you invest in the bond today to reach your goal?
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You are considering a savings bond that will pay $100 in 10 years. If the interest rate is 2%, what should you pay today for the bond?You are thinking about buying a savings bond. The bond costs $50 today and will mature in 9 years with a value of $100. What annual interest rate will the bond earn? The bond will earn an annual rate of _____%. (Round to two decimal places.)
- A man was offered a bond with a face value of ₱1,000,000 which has interest of 8% per year payable semi –annually and due in 10 years. If he wants to earn 6% semi –annually, how much must he pay the bond? Solve and show the solution.Suppose that savings and other investments will pay you 4% interest. A bond promises to pay you and your descendants $200 every year forever, starting next year. What is the most you would be willing to pay for this bond now?If you are considering the purchase of a bond that pays $850 per year forever, and the rate of interest you want to earn is 11% per year, how much money should you pay for the bond?
- You are planning to save for retirement over the next 20 years. To do this, you will invest $700 a month in a stock account and $400 a month in a bond account. The return of the stock account is expected to be 9 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 8 percent. How much can you withdraw each month from your account assuming a 15-year withdrawal period? A. $623407 B. $630939 C. $635876 D. $7480888 E. $2259917You are planning to save for retirement over the next 25 years. To do this, you will invest $7,000 a month in a stock account and $3,000 a month in a bond account. The return on the stock account is expected to be 7.5%, and the bond account will pay 4.5%. When you retire, you will combine your money into an account with a 3% return. How much can you withdraw each month during retirement assuming a 20-year withdrawal period?Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 8% on your investments, how much would you have to deposit today to have $15,000 when you graduate?
- By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment-grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years. How much will the face value of the bond that you will be investing? Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive? Now let’s extend the problem so that you protect yourself against inflation. Part B: Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement your social…You are planning to save for retirement over the next 15 years. To do this, you will invest $1,100 a month in a stock account and $500 a month in a bond account. The return on the stock account is expected to be 8 percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a 5 percent return. How much can you withdraw each month during retirement assuming a 20-year withdrawal period? Group of answer choices $3,113.04 $3,324.11 $2,636.19 $3,008.21 $2,904.11If you invest $10,000 in a savings account that earns 5% interest per year, how much will you have in 10 years? How does this amount compare to investing the same amount in a mutual fund that earns an average of 8% per year?