Question
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 |
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Business Finance
Authors: Brian Watts
8th Edition
0712110720, 978-0712110723
