Question
Calculate the 2 scenerio in excel A. You are going to being investing. You have a lump sum of $1000 to invest today and, beginning
Calculate the 2 scenerio in excel
A. You are going to being investing. You have a lump sum of $1000 to invest today and, beginning in 2 weeks, you will invest $200 every 2 weeks for twenty years. How much will you have at the end of 20 years? You estimate a 9% return on your investment. Assume bi-weekly compounding for both the lumpsum and the annuity.
Correct answer: $296,703.54
B. You are thinking of buying real estate property that will net you $5000 per month after expenses and taxes. If you plan to sell the property in 5 years and hope to get at least $1,000,000 for it. If your required return is 12%, how much should you invest today?
Correct answer: $775,224.81
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