Your grandmother invested $1,000 for you the day you were born. How much will this investment be worth on your 30th birthday, assuming the investment earned 6% interest compounded quarterly?
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Your grandmother invested $1,000 for you the day you were born. How much will this investment be worth on your 30th birthday, assuming the investment earned 6% interest compounded quarterly?
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- Your grandfather left you an inheritance that will provide an annual income for the next 20 years. You will receive the first payment one year from now in the amount of $2,500. Every year after that, the payment amount will increase by 6 percent. What is your inheritance worth to you today if you can earn 8.75 percent on your investments? Assume annual compounding.Assume that a couple invests $1000 upon the birth of their daughter. Assume that the investment earns 6.8% compounded annually. What will the investment be worth on the daughter’s 18th birthday?Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?
- On your tenth birthday, you received $300 which you invested at 4.5 percent interest, compounded annually. Your investment is now worth $756. How old are you today?Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded annually. How much will Kay's investment be worth in 25 years?To accumulate $100,000 for your child's 18th birthday, you need to invest a certain amount annually, excluding the 5th birthday deposit. The first deposit is made the day your child is born. To find this amount (X), considering a 8% annual rate of return:
- Your grandfather is retiring at the end of next year. He would like to ensure that his heirs receive payments of $11,600 a year forever, starting when he retires. If he can earn 12.0 percent annually, how much does your grandfather need to invest to produce the desired cash flow? (Round answer to 2 decimal places e.g. 15.25.)A father wishes to bequeath to this daughter 20,000 ten years from now. If he invest an amount earning interest rate of 8% compounded annually during the first five years and 12% compounded semi annually during the next five years,determine: a. what amount should he invest now?Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?
- 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?Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest compounded yearly. They want to spend all of it before they die. If they plan to live 15 more years, how much should they withdraw at the end of each year to accomplish their goal?On your tenth birthday, you received $300 which you invested at 4.5 percent interest, compounded annually. Your investment is now worth $756. How old are you today (rounded to the whole number)? Group of answer choices 32 30 28 31 21