Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I determine the below? You have an opportunity to invest $500 in an investment fund that pays 7.5% annual interest. How much money

How do I determine the below?

You have an opportunity to invest $500 in an investment fund that pays 7.5% annual interest. How much money will the investment fund have after 8 years? (1 point)

An investment fund has $10,000 and yields 6% interest annually. How many years will it take for the fund to grow by five times? (1 point)

What is the present value of a $1,000 fund that has a 4% interest rate over 9 years? (1 point)

You are a millionaire and you wish endow a children's foundation with sufficient money to fund ongoing scholarships. The Children's Scholarship Fund of Charlotte (CFC) asked you to partner with them and start up a scholarship fund with $500,000 disbursements. The fund will grow by 2% in perpetuity annually at an interest rate of 4%. How much do you need to initially invest into the CFC? (3 points)

Jim and Mary Cummings just had their first child, and they want to begin saving for college expenses. They estimate they will need a college fund worth $100,000 to pay for four years of college costs. They plan to set aside $2,700 at the end of each year for the next 18 years, at an investment interest rate of 8% interest. Given that plan, how long will it take Jim and Mary to accumulate the money they need? (4 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures and Other Derivatives

Authors: John C. Hull

10th edition

013447208X, 978-0134472089

More Books

Students also viewed these Finance questions