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After graduation, you find that you have an excess of S4 750 left over from scholarships and internship earnings Rather than spend the money on
After graduation, you find that you have an excess of S4 750 left over from scholarships and internship earnings Rather than spend the money on something nice for yourself, you decide to use this as the seed money for your retirement. You invest the money with an expected return of 8 43 in a qualified investment plan you feel that you should be able to save $390 per month from your new job. Given monthly compounding and that your savings target of $390 remains the same, how much will you save by the time you plan to retire (assume a 40 year career as your investment horizon Hint: You will be compounding months) Select one a Less than $1,300,000 b. Between $1,300,000 and $1,400,000 c. Between $1,500,000 and $1,600,000 d. Between $1,600,000 and $1,700,000 e Greater than $1,700,000 Your cousin, Willie, has come to you and needs to borrow $2,500. He wants to pay you back by making payments every 6 months of $500 for 3 years. What interest rate are you making on your loan to Willie? Select one: a. Less than 6% b. Between 6% and 7% c. Between 7% and 8% d. Between 8% and 9% e Greater than 9% Last year, the XYZ Company's sales were $475 million. If sales grow at 10.5% per year, how large (in millions) will they be 6 years later? Select one: a. Less than $900 b. Between $900 and $1,000 c. Between $1,000 and $1,100 d. Between $1,100 and $1,200 e. Greater than $1,300
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