X Your answer is incorrect. Chris Anderson plans to save $5,716 every year for the next eight years, starting today. At the end of eight years, Chris will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 12 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $ 2844.12

X Your answer is incorrect. Chris Anderson plans to save $5,716 every year for the next eight years, starting today. At the end of eight years, Chris will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 12 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $ 2844.12

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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Similar questions

6. If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need to deposit each year for these 7 years? Assume that your money will earn 10 percent per year. 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average earning of 11 percent over the 40 years until her retirement, what will be the value of her retirement account?
You believe you will need to have saved $593,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $113,000 in 5 years. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.) If the interest rate is 7% per year, what is the future value of your inheritance at retirement? How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $5,300 of income a year for 12 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $5,300 of income a year for 30 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $85,028.03 B. $83,360.81 C. $96,698.54 D. $95,031.33 E. $70,856.69
You believe you will need to have saved $339,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $105,000 in 5 years. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.) If the interest rate is 5% per year, what is the future value of your inheritance at retirement? Future value How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance? Additional savings
Paul Finley wishes to become a millionaire. His money market fund has a balance of $239,392 and has a guaranteed interest rate of 10%. How many years must Paul leave that balance in the fund in order to get his desired $1,000,000? Round answer to 0 decimal places, e.g. 45.)
You plan on investing $1.900 every 4 years while earning 6% per year. How much money will you have in total, immediately after investing the last payment amount? Round your answer to the nearest 2 decimal places and do not include a dollar sign. For instance 46.75.
You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an APR of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much do you have to save each month if you wait 10 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How much do you have to save each month if you wait 20 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Savings per month starting today b. Savings per month starting in 10 years c. Savings per month starting in 20 years $ 14,877.20 42,386.55 128,309.79
Assume that you just inherited an annuity that will pay you $10,000 per year for 10 years, with the first payment being made today. A friend of your mother offers to give you $60,000 for the annuity. If you sell it, what rate of return would your mother’s friend earn on his investment? If you think a “fair” return would be 6%, how much should you ask for the annuity? What keys do I need to enter in a financial calculator to get the answers of (13.70%, $78,016.92)/ only show me the keys to enter in a financial calculaotr. not excel and not algebra
How many payments can Gabriel expect to receive in retirement? He expects to earn 7.04 percent in his retirement account. He plans to save $22,600.00 per year in his retirement account for 5 years, with his first savings contribution to his retirement account expected today. In retirement, Gabriel plans to withdraw $30,500.00 per year for as long as he can, with his first retirement payment received in 5 years.(Round the value to decimal places)
13. You have just made your first $4,000 contribution to your retirement account. Assuming you earn an 11 percent rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?). 14. You are saving up for a down payment on a house. You will deposit $600 a month for the next 24 months in a money market fund. How much will you have for your down payment in 24 months if the fund earns 12% APR compounded monthly?
You are hoping to buy a house in the future and recently received an inheritance of $16, 000. You intend to use your inheritance as a down payment on your house. a. If you put your inheritance in an account that earns 8 percent interest compounded annually, how many years will it be before your inheritance grows to $33, 000? b. If you let your money grow for 9.5 years at 8 percent, how much will you have? c. How long will it take your money to grow to $33, 000 if you move it into an account that pays 3 percent compounded annually? How long will it take your money to grow to $33, 000 if you move it into an account that pays 12 percent? d. What does all this tell you about the relationship among interest rates, time, and future sums?

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