Linda Baer has already saved $4,873 to buy a used vehicle Ignoring taxes and assuming her money is invested in a money market account earning 5 compounded annually, to save the money to buy a car that costs $7,559 will take years Kirk Van Houten, who has been married for 19 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30 year wedding anniversary Assume that the cost of the ring will be $11,870 in 11 years Kirk currently has $4,600 to invest What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring When Derek was a small child, his grandfather established a trust fund for him to receive $18,000 on his thirty fifth birthday Derek just turned 23 What is the value of his trust today if the trust fund earns 9 percent interest If he had to wait until age 40 to receive the money, what is the present value today of the $18,000 to be received in 17 years How long will it take to pay off a loan of $48,000 at an annual rate of 11 compounded monthly if you make monthly payments of $500 (round up) Ahmed just turned 19 and wants to have $18,321 saved in 11 years, by his 30th birthday Assuming no additional deposits, if he currently has $7,100 in an intermediate term bond fund earning a 7 percent yield, will he reach his goal If not, what rate of return is required to meet his goal Anthony and Michelle Constantino just got married and received $23,000 in cash gifts for their wedding How much will they have on their twenty fifth anniversary if they place half of this money in a fixed rate investment earning 6 percent compounded annually Would the future value be larger or smaller if the compounding period was 6 months How much more or less would they have earned with this shorter compounding period You are offered $100,000 today or $296,000 in 12 years Assuming that you can earn 10 on your money, which should you choose The present value of the $296,000 in 12 years is $ Shaylea, age 22, just started working full time and plans to deposit $6,000 annually into an IRA earning 8 percent interest compounded annually How much would she have in 20 years, 30 years, and 40 years If she changed her investment period and instead invested $500 00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods Comment on the differences over time If you deposit $2,800 today into an account earning a(n) 12 percent annual rate of return, what will your account be worth in 40 years (assuming no further deposits) In 50 years You are graduating from college at the end of this semester and have decided to invest $5,000 at the end of each year into a Roth IRA (a retirement investment account that grows tax free and is not taxed when it is liquidated) for the next 50 years If you earn 4 percent compounded annually on your investment of $5,000 at the end of each year, how much will you have when you retire in 50 years How much will you have if you wait 10 years before beginning to save and only make 40 payments into your retirement account Richard Gorman is 65 years old and about to retire He has $688,000 saved to supplement his pension and Social Security and would like to withdraw it in equal annual dollar amounts so that nothing is left after 12 years How much does he have to withdraw each year if he earns 8 percent on his money

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Posted on Oct 05, 2024

Linda Baer has already saved $4,873 to buy a used vehicle. Ignoring taxes and assuming her money is invested in a money market account earning 5% compounded annually, to save the money to buy a car that costs $7,559 will take __ years.

Kirk Van Houten, who has been married for 19 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $11,870 in 11 years. Kirk currently has $4,600 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?

When Derek was a small child, his grandfather established a trust fund for him to receive $18,000 on his thirty-fifth birthday. Derek just turned 23. What is the value of his trust today if the trust fund earns 9 percent interest? If he had to wait until age 40 to receive the money, what is the present value today of the $18,000 to be received in 17 years?

How long will it take to pay off a loan of $48,000 at an annual rate of 11% compounded monthly if you make monthly payments of $500 (round up)?

Ahmed just turned 19 and wants to have $18,321 saved in 11 years, by his 30th birthday. Assuming no additional deposits, if he currently has $7,100 in an intermediate-term bond fund earning a 7 percent yield, will he reach his goal? If not, what rate of return is required to meet his goal?

Anthony and Michelle Constantino just got married and received $23,000 in cash gifts for their wedding. How much will they have on their twenty-fifth anniversary if they place half of this money in a fixed-rate investment earning 6 percent compounded annually? Would the future value be larger or smaller if the compounding period was 6 months? How much more or less would they have earned with this shorter compounding period?

You are offered $100,000 today or $296,000 in 12 years. Assuming that you can earn 10% on your money, which should you choose?The present value of the $296,000 in 12 years is $__

Shaylea, age 22, just started working full-time and plans to deposit $6,000 annually into an IRA earning 8 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her investment period and instead invested $500.00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time.

If you deposit $2,800 today into an account earning a(n) 12 percent annual rate of return, what will your account be worth in 40 years (assuming no further deposits)? In 50 years?

You are graduating from college at the end of this semester and have decided to invest $5,000 at the end of each year into a Roth IRA (a retirement investment account that grows tax free and is not taxed when it is liquidated) for the next 50 years. If you earn 4 percent compounded annually on your investment of $5,000 at the end of each year, how much will you have when you retire in 50 years? How much will you have if you wait 10 years before beginning to save and only make 40 payments into your retirement account?

Richard Gorman is 65 years old and about to retire. He has $688,000 saved to supplement his pension and Social Security and would like to withdraw it in equal annual dollar amounts so that nothing is left after 12 years. How much does he have to withdraw each year if he earns 8 percent on his money?