Question
1)George Bautista needs $24,000 in 10 years. What amount must he invest today if his investment earns 12% compounded annually? What amount must he invest
1)George Bautista needs $24,000 in 10 years. What amount must he invest today if his investment earns 12% compounded annually? What amount must he invest if his investment earns 12% annual interest compounded quarterly? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
Investment at 12% annual interest | $ | |
---|---|---|
Investment at 12% annual interest, compounded quarterly | $ |
2) What would you pay for a $195,000 debenture bond that matures in 15 years and pays $9,750 a year in interest if you wanted to earn a yield of:
4%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Amount to Pay | $ |
3)John Fillmores lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $440,700. He estimates that the boat he wants will cost $340,900 when he retires in 7 years. How much of his inheritance must he invest at an annual rate of 9% (compounded annually) to buy the boat at retirement? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
Investment amount | $ |
4)Steve Quincy wants to withdraw $37,300 each year for 13 years from a fund that earns 8% interest. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
First withdrawal at year-end | $ | |
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First withdrawal immediately | $ |
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