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please answer all of these question for my homework You started an investment account 10 years ago with $2000, and it now has grown to
please answer all of these question for my homework
You started an investment account 10 years ago with $2000, and it now has grown to $8600. a. What annual rate of return have you earned (you have made no additional contributions to the account)? b. If the investment account earns 15% per year from now on, what will the account's value be ten years from now? a. The annual rate of return is %. (Round to two decimal places.) What is the present value of $10,000 paid at the end of each of the next 98 years if the interest rate is 7% per year? The present value is $ (Round to the nearest cent.) Assume that your parents wanted to have $120,000 saved for university by your 18 th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 5.5% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $160,000 saved, just in case, how much would they have to save each year to reach their new goal? a. To reach the goal of $120,000, the amount they have to save each year is $ (Round to the nearest cent.) You are saving for retirement. To live comfortably, you decide you will need to save $1 million by the time you are 65 . Today is your 30th birthday, and you decide, starting today and continuing on every birthday up to and including your 65 th birthday, that you will put the same amount into a savings account. If the interest rate is 3%, how much must you set aside each year to make sure that you will have $1 million in the account on your 65 th birthday? The amount to deposit each year is $ (Round to the nearest dollar.) Assume that the Canada Pension Plan promises you $30,000 per year starting when you retire 45 years from today (the first $30,000 will come 45 years from now). If your discount rate is 9%, compounded annually, and you plan to live for 15 years after retiring (so that you will get a total of 16 payments, including the first one), what is the value today of Canada Pension Plan's promise? The value today of the Canada Pension Plan's promise is $ (Round to the nearest dollar.) Assume you can eam 9% per year on your investments a. If you invest $10,000 for retirement at age 30 , how much will you have 35 years later for retirement? b. If you wait until age 40 to invest the $10,000, how much will you have 25 years later for retirement? c. Why is the difference so large? a. If you invest $10,000 for retirement at age 30, how much will you have 35 years later for retirement? The amount of money you will have 35 years later for retirement is $ (Round to the nearest cent)
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