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Question 5: (Each part-5 marks) (Total 20 Marks) A. Assume that you invest $10,000 today in the stock market and earn an average of 20%
Question 5: (Each part-5 marks) (Total 20 Marks) A. Assume that you invest $10,000 today in the stock market and earn an average of 20% in annual returns. How much money will you have in your account which you retire in 25 years? B. You want to have $5,000,000 in your account when you retire so that you can tell everyone that you retired a millionaire. If you can earn 15% in the stock market and you have 30 years until you retire, how much money must you invest today to have $5,000,000 in the future? C. You have a son born today and immediately invest $5,000 in their investment account. Assuming the investment will grow at 16% annually, how much would your son have in his account when he retires at age 65? D. What is the present value of $140,000 to be received after 30 years with a 14 percent discount rate
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