Problem Section:

If an investment is expected to return of 11.75 percent in the future, a $200,000 investment will grow to how much in 25 years?

The answer is _______________.

To intend to buy a retirement home in 18 years and you expect that you will need $370,000 at the end of 18 years. If funds can be invested at an effective return of 7 percent a year, how much must you invest today to have the needed amount?

The amount needed to invest today is _________.

How long does it take to have a million dollars if you have $50,000 today and can earn 9% annually?

The number of years is _______________.

If you received a 18 cent dividend 12 years ago and you now receive a 77 cent dividend, how much has the dividend grown over this time period? (or at what rate of return has this dividend grown)?

The growth rate is _______________.

You decide to max-out your annual investment into your Individual Retirement Account and invest $5,500 at the end of each year for the next 32 years. Because you were frightened by the recent two market declines in the last 17 years, you decide to invest in a bond portfolio expected to earn only 4.8% annually (assume annual interest payments at the end of the year). How much will you have at the end of this investment period?

The answer is _______________.

What is the answer if you put the money into the account at the beginning of the year instead of the end of the year _________.

You decide to max-out your annual investment into your Individual Retirement Account and invest $5,500 at the end of each year for the next 32 years. If you are NOT frightened by the recent two market declines and decide to invest in a large stock portfolio, you expect to earn 10% annually. How much will you have at the end of this investment period?

The answer is _______________.