1. Greta wants to go on a vacation around the world in 4 years. If she puts $50 into an account each week that pays 3.4% interest compounded weekly, how much will she have at the end of the four-year period?
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- suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal?Saleh is considering an investment that will pay $5,000 a year for 7 years, starting one year from today. How much should she pay for this investment if she wishes to earn a 12 percent rate of return? a. $17,899.08 b. $18,023.88 c.. $20,186.75 d. $22,818.7812) What annual rate of return would Jia need to earn if she deposits $20,000 per year into an account beginning one year from today in order to have a total of $1,000,000 in 30 years?
- PMT 2. You plan to retire in 30 years and plan on saving $15,000 annually, N starting next year, for the next 30 years. You expect to need $120,000 about 18 years from now for college tuition for your recently born daughter which must be paid out of these savings. You expect to live 35 years during retirement (the first retirement payment will be 31 years from today). a. If you assume an interest rate of 8.15% over the entire period, how much will you have available to spend annually in retirement in assuming you plan to purchase a $200,000 summer retirement home five years after you retire (the purchase will be made in year 35)? b. Same as part a, except that interest rate is 5%. Does your retirement quality of live improve significantly? Assume the same college tuition and retirement home price. c. If interest rate is 5%, but you want to keep the same retirement quality of life as if the interest rate is 8.15%. How much extra money do you need to save annually?Economics 3. Sarah wants to have $2,000,000 in net worth when he retires. To achieve this goal, she plans to invest $1,000 each year (starting one year from now) into an account of time that earns 10% interest rate compour is how many years? a. 31.94 (32 y b. 55.64 (56 ye 25.56 (26 years) d. 20.36 (20 years) ually. The amount of time Sarah can retire as a multimillionaire C.If you invest P25,000 at 8% interest compounded annually, approximately how much money will be in the account at the end of 10 years? a. P31,000 b. P46,000 c. P54,000 d. P75,000 3. A John wants to surprise his mother with a gift for her birthday, which is five vears away. He 2.
- 3. María Lebrón is considering an investment that pays 7.6% interest compounded annually. How much would she have to invest today if she expects this investment to bring her $ 25,000 in six years?Inez wants to have $17,250 in 4 years. Use the present value formula to calculate how much Inez should invest now at 5% interest, compounded quarterly in order to reach her goal. A$13,800.00 B$14,128.98 C$14,140.62 D$14,191.623.3.2 Garrick decides he will need $25000 to buy a new car in 3 years. He found an investment account that has been paying an average of 1.8% per quarter. What does his deposit need to be each quarter? What monthly payment will that mean he needs to deposit? How much interest will he earn in the 3 years?
- aa.3 Your daughter is born today and you want her to have $1.5 million dollars by the time she is 35 years old. You open an investment account that promises to pay 8% 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 $1,500,000 at age 35?FUTURE VALUE OF AN ANNUITY Your client is 40 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average retum of 9% in the future. 5-19 a. If she follows your advice, how much money will she have at 65? b. How much will she have at 70? c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to eam the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age?:Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $160,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? O 2.28% O 2.20% O 2.22% 2.33% 2.59%