Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years?
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Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years?
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- Your sister just deposited $6,500 into an investment account. She believes that she will earn an annual return of 9 percent for the next 8 years. You believe that you will only be able to earn an annual return of 8.4 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 8 years?Your sister just deposited $5,000 Into an investment account. She belleves that she will earn an annual return of 8.7 percent for the next 5 years. You believe that you will only be able to earn an annual return of 7.8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 5 years?Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years? Multiple Choice O O $562.67 $602.86 $643.06 $416.79
- Frances plans to save money for a down payment on a house using an investment account that pays an interest rate of 5.3% per year. She wants to have $425, 000 available five years from today. Frances intends to deposit an amount today and at the end of each of the next five years into her investment account (i. e. she will make a total of six deposits, all of the same amount). How much will each of these deposits be? (Enter your answer to two decimal places)Your parents start saving for your sister's college education. She will begin college at age 18 and will need $4,000 per year at the end of each of the next 4 years. They will make a deposit one year from today in an account which pays 6% compounded annually, and an identical deposit each year including the year she starts college. If a deposit of $1,987 will allow them to reach their goal, how old is your sister now?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?
- Two years ago my daughter was born. On the day she was born I put $4000 into an account for her. The account earned i% annually (you'll need to find out what that interest rate is). That interest rate on the account will be fixed until she turns 9, at which point I will transfer whatever is in that account into a new one which is expected to earn 6% per year, and then I'll leave that money in that account until her 16th birthday. I plan to take her to Italy to visit her Nona when she turns 12. I expect that trip to cost $6000 and I intend to withdraw that amount from the account. On her 16th birthday her account has a positive balance of $622. Find the interest rate of her initial accountDestiny invests $20,000 today into a retirement account. She expects to earn 7 percent, compounded annually, on her money for the next 30 years. After that, she wants to be more conservative, so only expects to earn 4 percent, compounded annually. How much money will she have in her account when she retires 40 years from now, assuming this is the only deposit he makes into the account? O $225,359.94 O $152.245.10 O $377,605.04 $299,489.16 O None of the answers is correctYour daughter just turned 5 years old. You plan to send her to college beginning on her 18th birthday. You will need to make payments of $8,000 at the beginning of each year for three years. If you can invest in an account that earns an annual effective rate of 4%, how much money will you need to put aside today to cover these payments?
- You want your daughter to be a millionaire. She is 3 years old today when you deposit $42,000 in an account that earns 8.2% per year. The funds in the account will be distributed to your daughter whenever the total reaches $1,000,000. How old will your daughter be when she gets the money?Jennifer is planning her retirement. She currently has $6,783 in an IRA account that will return 8% per annum as long as she keeps the money on deposit. She will save $2,000 at the end of each year for the next 32 years until she retires in an account that she expects will earn 7% per annum. How much will she have when she retires?Charlotte wishes to accumulate $100,000 in a savings account in 10 years. If she wishes to make a single deposit today and the bank pays 4% compounded annually on deposits of this size, how much should Charlotte deposit in the account?