Question
a. How much do you need to invest per month over a 24 year time horizon to become a millionaire, if you have no savings
a. How much do you need to invest per month over a 24 year time horizon to become a millionaire, if you have no savings and you can generate an average annual return on investment of 9%?
[Enter the dollar amount as a positive value and round to the nearest cent]
b. Suppose you invest $3,798 into an investment account each year earning 10.76% interest per annum. How much, in real terms, will you have in this account after 34 years if inflation is 2.39%?
[Round the answer to the nearest cent]
c. Suppose you bought 440 securities for $35.42 per security, which will pay you $2.54 per security in income per year. If these securities can be sold for $46.66 per security after one year, what is your capital gains yield?
[Enter the answer in as a percent (e.g. 5.55% = 5.55) - not a decimal]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started