t 35 years old, you have an investment portfolio of $150,000. You are looking into adjusting the allocation of your investments for both your existing portfolio and your future contributions. It is currently at an 80/20 allocation, but now you want to adjust to a 70/30 allocation. You believe that 8% is what stocks will return over the next fifteen years, and 4% is what you expect to return in your bond portfolio. If you invest $700/month for the next fifteen years, what will your portfolio be worth? (assume monthly compounding) $598,652 $632,840 $724,248 $666,051
1.
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At 35 years old, you have an investment portfolio of $150,000. You are looking into adjusting the allocation of your investments for both your existing portfolio and your future contributions. It is currently at an 80/20 allocation, but now you want to adjust to a 70/30 allocation. You believe that 8% is what stocks will return over the next fifteen years, and 4% is what you expect to return in your bond portfolio. If you invest $700/month for the next fifteen years, what will your portfolio be worth?
(assume monthly compounding)
$598,652
$632,840
$724,248
$666,051
2.
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PowerTech Company has issued bonds paying a 4% Coupon Rate. The current market price of the bonds are $920. What is the Current Yield of the bond?
4%
4.9%
3.57%
4.3%
3.
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You are looking to buy a car that costs $25,000. Your bank has told you that they will give a five year loan with an APR of 8% that compounds monthly. What is your monthly payment?
$457.65
$329.67
$524.89
$506.91
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