OJECTS HELP DONATE CONTACT JOBS VOLUNTEER PEOPLE put most of my money in U.S. Treasury bills, notes, and bonds fund from which you could draw an income of $100,000 pe year-forever! How much would you need to deposit each BASIC SKILLS & CONCEPTS month to do this? Assume a constant APR of 6%. 15-18. Savings Plan Formula. Assume monthly deposits and monthly 28. Very Comfortable Retirement. Suppose you are 25 years old and compounding for the following savings plans. would like to retire at age 63, having accumulated a retireme 15. Find the savings plan balance after 12 months with an APR fund from which you could draw an income of $200,000 per of 3% and monthly payments of $75. year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 6%. 16. Find the savings plan balance after 5 years with an APR of 2.5% and monthly payments of $200. 29-36: Total and Annual Returns. Compute the total and annual return on each of the following investments. 17. Find the savings plan balance after 3 years with an APR of 4% and monthly payments of $200. 29. Five years after buying 100 shares of XYZ stock for $60 per share, you sell them for 59400. 18. Find the savings plan balance after 24 months with an APR of 5% and monthly payments of $125. 30. You pay $8000 for a municipal bond. When it matures after 20 years. you receive $12,500. 19-22: Investment Plans. Use the savings play formula to answer the following questions. 31. Twenty years after purchasing shares in a mutual fund for $6500. you sell them for $11,300 19. At age 25, you set up an IRA (individual retirement account) 32. Three years after buying 200 shares of XYZ stock for $25 per with an APR of 5%. At the end of each month, you deposit $150 in the account, How much will the IRA contain when share, you sell them for $8500. you retire at age 65? Compare that amount to the total depo. 33. Three years after paying $3500 for shares in a startup com- it's made over the time period. pany. you sell them for $2000 (at a loss). 20. A friend has an IRA with an APR of 0. 25% She started the 34. Five years after paying $5000 for shares in a new company. IRA at age 25 and deposits $100 per month. How much will you sell them for $3000 (at a loss). her IRA contain when she retires at age 657 Compare that 35. Ten years after purchasing shares in a mutual fund for $7500 amount to the total deposits made over the time period. you sell them for $12,600. 21. You put $300 per month in an investment plan that pays an 36. Ten years after purchasing shares in a mutual fund for APR of 3.5%. How much money will you have after 18 years? $10.000. you sell them for $2200 (at a loss). Compare this amount to the total deposits made over the time 37. Historical Returns. Suppose that at the end of 1900 your great- period. great-grandfather invested $300 in each of three funds that 22. You put $200 per month in an investment plan that pays an tracked the averages of stocks, bonds, and cash, respectively APR of 4.5%. How much money will you have after 18 years? Assuming that these investinents grew at the rates given in Compare that amount to the total deposits made over the Table 4.6, approximately how much would each have been time period. worth at the end of 2016? 23-26: Planning for the Future. Use the savings plan formula to answer 38. Historical Returns. Suppose that at the end of 1900 your great- the following questions. great-grandmother made the following investments. $10 in 23. Your goal is to create a college fund for your child. Suppose stocks, $75 in bonds, and $500 in cash. Assuming that these you find a fund that offers an APR of 5% How much should investments grew at the rates given in Table 4.6, approxi- you deposit monthly to accumulate $170,000 in 15 years? mately how much would each have been worth at the end of 2016? Mathematics A Quantitative (7th Edition) By Jeffrey O Favorite Share Flag iggs