Question
1.How can you make more money 2.Suppose you want to have $300,000 for retirement in 30 years. Your account earns 9% interest. a) How much
1.How can you make more money
2.Suppose you want to have $300,000 for retirement in 30 years. Your account earns 9% interest.
a) How much would you need to deposit in the account each month?
b) How much interest will you earn?
c) Suppose you waited 10 years to invest in the same retirement fund and have the same $300,000 for retirement at the same 9% interest. What amount will you have to deposit each month to match the value of your annuity?
3.A bank loaned out $21,000, part of it at the rate of 4% annual interest, and the rest at 15% annual interest. The total earned for both loans was $2,215.00. How much was loaned at each rate?
4.If I put $330,000 into an account at age 62 with 4 percent interest compounded annually, but I took $2300 out each month, at what age would my balance be $0?
5.Should you invest in retirement funds after getting in place your emergency funds Explain
6.Brianhas won a state lottery and will receive a payment of $93,000every year, starting today, for the next 20 years. If she invests the proceeds at a rate of5.76percent, what is the present value of the cash flows that she will receive?
7.Sam invests the earnings of $3000 from her full-time job. She invests part of the money at 5%/year, and the rest at 4%/year. After one year, these investments earn $140 simple interest. How much did she invest at each rate?
What reason might you imagine for her to divide her money between two different accounts when she could obviously get more money in the one giving 5% interest?
8.Narrate the normative theory
9.Santos just retired, and has $870,000 to invest. A very safe Certificate of Deposit (CD) account pays 1%, while a riskier bond fund pays 5.5% in interest. Santos figures he needs $22,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk?
10.Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.)
P = 160,000, r = 2.5, t = 25, m = 2
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