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A. You recently opened a 5-year certificate of deposit (CD) account with an initial deposit of $20,000. The bank pays 5% annually. How much money
A. You recently opened a 5-year certificate of deposit (CD) account with an initial deposit of $20,000. The bank pays 5% annually. How much money will you have in your account 5 years from today? (3 pts) B. You are planning to save money to buy a house in 5 years from today. You need $50,000 for the down payment. You plan to invest your savings in a diversified mutual fund, which is expected to carn 8% annually over the next 5 years. How much money you need to save per year (equal amount per year) to accumulate $50,000 for the down payment? Assume payments are made at the end of year. (5pts) would like to have $10 million dollar in your ROTIRA ACCOUN in from today. What is the value of that S10 million in current dollats Mice) If you expect that the annual rate of inflation would remaina 3 percent? (Apts)
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