A person needs to have $15,000 at the end of 6 years and $20,000 at the end year 7 to fulfill his goal. He is willing to invest a lump sum on two deposits today and leave the money untouched to the moment when the money will be needed. Calculate required investment returns he will need to earn to reach her goal knowing that he can invest now: a) $12,000| b) $14,000 c) $16,000
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- You calculate that you will need $75,000 in ten years to be able to pay for your daughter's college education. If you invest $20,000 today, what rate of return will you need to achieve this goal? Select one: A. Between 12% and 13% B. Between 13% and 14% C. Between 14% and 15% D. Between 15% and 16%SOLVE the following:i. Suppose that your five-year old daughter has just announced her desire toattend college. After some research, you determined that you will need aboutRM 100,000 on her 18th birthday to pay for four years of college. If you canearn 8% annually on your investments, how much do you need to invest todayto achieve your goal?ii. Suppose you have an extra RM100 today that you wish to invest in for oneyear. If you can earn 10% per annum on your investment, how much will youhave in one year?Willie would like to have $500,000 set aside at retirement. He would like to make annual deposits into his retirement fund, and expects to retire in 30 years. In order to meet his goal, how much must he deposit each year if he can earn a 6% return? N =_____ I/YR =_____ PV =________ PMT =_________ FV = ____________
- 6) Your daughter is born today, and you want her to be a millionaire by the time she is 35 years old. You open an investment account that promises to pay 16% per year. How much money must you deposit each year, starting on her 1st birthday and ending on her 35th birthday, so your daughter will have $1,000,000 by her 35th birthday? N Year I/Y Cash flow 7) The present value of the following cash flow stream is $8,500 discounted at 10 percent annually. What is the value of the missing cash flow? 1,000 PV 1 ? PMT 2 2,000 FV 3 4,000 4K Jack and Jill have just had their first child. If college is expected to cost $190,000 per year in 18 years, how much should the couple begin depositing annually at the end of the next 18 years to accumulate enough funds to pay 1 year of tuition 18 years frm now? Assume that they can earn a 6% annual rate of return on their investment. The amount that the couple should begin depositing annually at the end of each year is S This question: point(s) (Round to the nearest cent)Your friend already has $20,000 in an investment account. In addition to this amount, she is considering investing $5,000 at the end of year 1 with this amount growing at 6% p.a. until the end of year 5. If the interest rate earned by the investment account is expected to be 8% p.a., the total amount she will have accumulated in this account at the end of five years is closest to: Group of answer choices $29,387. $32,776. $62,162. $66,120.
- Michelle wants to set aside funds to take an around the world cruise in 7 years. Michelle expects that she will need $26500 for her dream vacation. If she is able to earn 8% per annum on an investment, how much will she have to set aside today so that she will have sufficient funds available? O $15462. O $14316. O $2970. O $45414.7. You plan to save every year and accumulate $150,000 in 6 years to make the down payment for your house. To achieve your financial goal, you plan to make a deposit of $20,000 per year into a bank account paying 6% annual interest. The first deposit will be made a year from today. a. Draw a timeline to visualize the problem. b. Can you achieve your financial goal? (Show your work to answer this question) c. If not, what is the minimum deposit you need to make per year in order to achive your goal? 8. You are pursuing a Bachelor's in Finance at a business school, and you will need $20,000 per year for the next 4 years to cover your college expenses. That is, you plan to withdraw $20,000 at the end each of the next 4 years, starting one year from today. To support your college education, your parents decide to make a deposit today into a bank account paying an 8% annual interest. This deposit should be sufficient to cover the four $20,000 withdrawals you will make over the next 4 years.…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. 1,368.57
- (Use Calculator or Formula Approach) You want to begin saving for your daughters college education and you estimate that she will need $150,000 in 17 years. If you feel confident that you can earn 8% per year, how much do you need to invest today?Use Excel to solve the following problem. Assume that you are 39 years old planning for your future retirement at age 65. You think that you will be comfortable living on the proceeds from a $1,000,000 401K Retirement Account.a. If your investments grow at an average rate of 6% annually how much must you invest monthly to achieve your projected retirement fund total by the time you retire in 26 years?b. Assuming that when you do retire, you will re-direct your $1,000,000 investment portfolio into less volatile and more secure mutual funds. You expect that, invested in these sources, your portfolio will securely earn 4.5% annually. Based on your assumptions and the normal life expectancy of an American male or female (I determined this to be 81 years old), without consuming any of your principal, how much money will you have on a monthly basis to support your life?(I have worked this problem out on my own, I just want to be sure I applied the formulas and concepts correctly.)Marco needs $175,000 six years from today. How much should Marco deposit today into an investment account that provides a 12% annual return in order to accomplish his goals? a. $89,523 b. $88,660 c. $85,487 d. $62,500