Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please make sure all work in shown. Im having difficulties with using my calculator For the TVM problems, list all 5 variables and make sure

Please make sure all work in shown. Im having difficulties with using my calculator image text in transcribed
For the TVM problems, list all 5 variables and make sure to circle or highlight the variable that you are solving for. For the return calculations, make sure all of your work is shown on the answer document. . You would like to start a graduation vacation savings account but only want to make one deposit today. If you plan on taking the trip in 4 years and expect it to cost $50,000, how much must you invest today? Assume the account earns 8% 2. You just learned about a savings account that was opened for you when you were born 20 3. When your daughter was born, you robbed a store and put the proceeds of S500,000 into a 4. 5 years ago, you purchased aa parrot for S500 and have trained it to be a circus parrot. Due to 5. Your mom is not very good with money. She was just awarded a 30 year annuity that will 6. You plan on working for at least 60 more years before you retire. Each year, you plan on 7. You opened a savings account 10 years ago by making a deposit of $20,000. The account years ago. The account has been earning 5% a year and was opened by your grandmother making an initial deposit of S10,000. How much should be in the account today? safe bank account earning 4%. Once the account reaches a total of $1,000,000, you plan on withdrawing the funds and surprising her. How old will she be? the skills you taught the parrot, you were able to just sell it for $760. What rate of return did you earn on your parrot? pay out $100,000 every year. She needs cash now. If you want to earn a 6% return, how much should you pay her today for the right to her annuity? making a deposit of $8,000 into a savings account earning 4% How much will you have when you retire? now has $80,000 in it. You have made a deposit of $5,000 every year. What interest rate has your account earned? You just inherited a savings account that has $100,000 in it. To be responsible, you would like the balance to never fall below $20,000. You plan on using the account to fund annual trips to Disney World that you estimate will cost $10,000 on average. If the account earn 5%, how many trips can you take? You just bought a $26,000 new car by agreeing to a loan that requires 5 annual payments. If the interest rate on the loan is 9%, how large does each payment need to be? 8. 9. d return for the stock below 10. Find the e State Of The World Probabili 10 10% 20% Recession Average 30% Boom 11. A stock has a realized return of 10% and an expected return of 15%. Treasury bonds are currently returning 3% while the S&P 500 is returning 12%. The stock under consideration has a beta of 0.8. How much should an investor require to earn on this stock? 12. Earlier this year you purchased a stock for $40 and are now planning on selling it for S30. During the year, you received a dividend of S5. What is your realized return from this stock? 15. Use the following to answer #15: PV 546.41, FV-800, PMT> 0, N 4, 1-10% 16. Use the following to answer # 16: PV-40,000, FV 0, PMT-5. 180.18, N 10, 1-5%

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

Students also viewed these Finance questions