You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $28,000. You feel you can earn an APR of 10.3 percent compounded monthly and plan to save $320 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation?
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You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $28,000. You feel you can earn an APR of 10.3 percent compounded monthly and plan to save $320 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation?
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- You want to save for a down payment on a new home in the future. You can invest $225 at the end of each month, and you expect to earn 6% APR compounded monthly on your investment. How much will you be able to have saved in 5 years? Your Answer: AnswerYour goal is to spend a year traveling around the world. You assume that it will cost $100,000 to accomplish this goal and you have 10 years to save for it. You presently have $10,000 to invest. What annual rate of compounding interest must you earn on your investment to cover the cost of this trip?You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $21,000. You feel you can earn an APR of 9.6 percent compounded monthly and plan to save $215 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation? Multiple Choice 6.04 years 8.14 years 6.90 years 6.30 years 5.57 years
- Assume that you and your family want to go on vacation in 5 years. You are planning to save for the trip. The estimated cost of the trip will be $10,000. You have found an investment that will pay 6% annual interest for the next 5 years. Using Excel, calculate the dollar amount that will be required to invest today to reach the financial expense for your vacation.You want to have $10,000 in 6 years for a dream vacation. If you can earn an interest rate of .5 percent per month, how much will you have to deposit today?After graduation from university, you start working and you want to plan for your retirement. You will be retiring in 25 years and during your retirement, you plan to spend USD 20,000 per year. You expect your retirement to last 30 years. You believe you can earn 8% on your retirement savings. If you make annual payments into a retirement plan during your working life, how much will you need to save each year to reach your retirement goal? (You will make the first payment at the end of the year).
- You are looking to invest your savings and want to earn a 10% annualized return. You can choose from the following three options:Project A: You will receive $100 at the end of two years.Project B: You will receive $50 at the end of one year and another $50 at the end of two years.Project C: You will receive $80 at the end of one year and another $20 at the end of two years.Calculate the present value of each option, which option should you pick?Suppose you have three goals in your financial planning for saving money.First, you would like to be able to retire 25 years from now with a retirement income of $10,000 (today's dollar) per month for 20 years. Second, you would like to purchase a vacation home in Sedona in 10 years at an estimated cost of $500,000 (today's dollars). Third, assuming that you will live until your life expectancy, say 20 years after your retirement, you would like to leave a cash contribution to your college in the amount of $1,000,000 (actual dollars). You can afford to save $2,000 (actual dollars) per month for the next 10 years. Assume that the general inflation rate is 4% and the property value in Sedona increases at an annual rate of 5%. Your first retirement withdrawal will be made 25 years and 1 month from now. Before retirement, you would be able to invest your money at an annual rate of 10%. But after retirement, you will invest your assets in more conservative financial assets at an annual rate…You want to accumulate $1,250,000 prior to retirement. If you can earn 10% per yr. and have the next 30 years to save every month, how much would you need to save at the beginning of every month to fulfill your wishes?
- You want to buy a house within 3 years, and you are currentlysaving for the down payment. You plan to save $9,000 at the end of the first year,and you anticipate that your annual savings will increase by 5% annually thereafter. Yourexpected annual return is 8%. How much will you have for a down payment at the endof Year 3?You have decided that in order to have a comfortable retirement you will need to replace $65,000 in income each year in retirement. Assuming you will need 20 years of retirement income and an inflation rate of 3.5%, how much will you need to have saved up in order to meet your goal on the day you retire?You want to save the down payment required to purchase a vacation home at the end of four years. If the required down payment is $75,000 and you can earn 6% a year on your savings account, how much do you need to set aside at the end of each year for the next four years?