1. Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today). a.
a. How much of a deposit would she have to make if the interest rate on the C.D. was 5%?
b. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.
c. What would Mrs. Beach have to deposit if she were to use common stock and earned an average rate of return of 11%.
d. What type of a problem is this?
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Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
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