Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You get a $10,000 sign-on bonus at your new job when you're 25 and then commit to saving and investing $150 per month of your

You get a $10,000 sign-on bonus at your new job when you're 25 and then commit to saving and investing $150 per month of your salary for the next 25 years. If you can invest your money at 6.5%, compounding quarterly, how much will you expect to have at the end of 25 years?

a.

$387,538

b.

$87,164

c.

$164,812

d.

$161,241

Louis is 25 years old and has a dream of having $1,000,000 in his investment account by the time he turns 50. If he invests in a fund that returns 5% per year (and compounds daily), how much does he need to save per day to get to $1,000,000?

a.

$59

b.

$57

c.

$55

d.

$45

You have a goal of accumulating $1.5m in your investment account over the next 33 years. If you can earn 10% on your investments, how much money do you need in your account today in order for it to grow to $1.5m in 33 years?

a.

$77,487

b.

$57,616

c.

$64,585

d.

$43,057

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance

Authors: Brian Watts

8th Edition

0712110720, 978-0712110723

More Books

Students also viewed these Finance questions

Question

Differentiate 3sin(9x+2x)

Answered: 1 week ago

Question

Compute the derivative f(x)=(x-a)(x-b)

Answered: 1 week ago