-333-21-2010: Week & As X Cho Em Sched Cat Future V 7 6/20 15 K Wes-Gogle Drive Gengle Docs + of Corporate Cereader chegg.com/books/9781260361 S ORODOS Intermediate (Questions 16-25) LO 16. Calculating Rates of Return a. Assuming you purchased a $50 face value bond, what rate of retum would you earn if you held the bond for 20 years until it doubled in value? Refer back to the Series EE savings bonds we discussed at the very beginning of the chapter b. If you purchased a $50 face value bond in early 2018 at the then-current interest rate of 10 percent per year, how much would the bond be worth in 2008 c. In 2028, instead of cashing the bond in for its then-current value, you decide to hold the bond until it doubles in face value in 2038. What rate of return will you eam over the last 10 years? LO2 17. Calculating Present Values Suppose you are still committed to owning a $175.000 Ferrarse Question 9). If you believe your meal fund can achieve an annual return of a percent, and you want to buy the car in 10 years on the day youtum 30 how much must you invest today? LO1 18. Calculating Future Values You have just made your first $5.000 contribution to your individual retirement account. Assuming you earn an annual rate of return of a percent and make so additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing (Does this suggest an investment strategy LOI 19. Groovy Green iu are scheduled to receive $10.000 in 2 years. When you receive it, you will love it for six more years at 7.5 percent per year. How much will you have is eight iods You expect to receive $30,000 at graduation in two years. You plan on investing it 7 percent until you have $125.000. How long will you want from n Question 9, but still no Ferrari.) LOT 21 Habave $5.800 to deposit Regency Bank offers 12 percent per year compounded monthly peront per month while King lank offers a pero but will only will your investment be worth in 20 years at each bank? LO3 22. Copy An investment offers to triple your money in 24 months (dont believe it. Whatrate per three months are you beingered? to you wait until your account has 100 LOG 23. lods You can eam 31 percent per month at your bank. If you deposit $1,800, how long LO2 24 Read Aloud from here fou need $85.000 in 10 years. If you can earn 78 percent per month, how much will you have to deposit today? LOZ 25. Calculating Present Values You have decided that you want to be a millionaire when you retire in 45 years. If you can earn an annual return of 11.4 percent, how much do you have to today? What if you can cam 5-7 percent? you o perorat per year for the e nd Challenge (Question 26) and a perrt per year for the best You have $20,000 you want to invest for the next 40 years. You are offered an investment plan that will LLO if the investment plan par 26. Calculating Future Values 10 percent per year for the last 20 years. How much will you have at the end of the 40 years? Does it percent per year for the next 20 years? Why or why not? O . 119