Question

a) You will receive $1,000 from your parents as a birthday gift in half year. You...

  1. a) You will receive $1,000 from your parents as a birthday gift in half year. You have decided to invest it at 5% per annual until you have $1,629. How many years will you have to wait from NOW until you achieve your target?

  2. b) You will receive fifty annual payments of $1,000 each beginning at the end of the 40th year. What is the present value of these payments? The appropriate annual discount rate is 10%.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

please find attached answers

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Today is your 21st birthday and your parents gave you a gift of $2,000. You just...
Today is your 21st birthday and your parents gave you a gift of $2,000. You just put this money in a brokerage account, and your plan is to add $1,000 to the account each year on your birthday, starting on your 22nd birthday. If you earn 10 percent a year in the brokerage account, what is the minimum number of whole years it will take for you to have at least $1,000,000 in the account? a. 41 b. 43 c....
a) on your sister’s 10th birthday, your parents want to invest a certain amount to enable...
a) on your sister’s 10th birthday, your parents want to invest a certain amount to enable her to withdraw R25 000 every six months from her 18th to her 24th birthday (both birthdays included). Calculate the sum they will have to invest if compounded interest is estimated at 12% per annum, compounded biannually. b) What is the present value of a perpetuity that pays R4 800 per year if the first payment does not begin until four years later and...
Today is your 25th birthday.  You have decided that it is necessary to plan your own retirement...
Today is your 25th birthday.  You have decided that it is necessary to plan your own retirement since you are not confident that government benefits will be available when you retire.  You will make annual payments into an account earning 5% APY starting on your next birthday (26th) a year from now.  Your last payment will occur on your 70th birthday.  You have decided that you need to plan for payments of $500,000 per year and that there will be a total of 20...
Assume you make annual contributions to a Roth IRA of $1,250 per year beginning on your...
Assume you make annual contributions to a Roth IRA of $1,250 per year beginning on your 25th birthday. Assume further that the account is projected to earn an annual return of 7.15% and that you will retire on your 65th birthday. What is the projected balance in the account on the date of your retirement? Assume no contribution on your 65th birthday. In other words, the last contribution occurs at the beginning of the 40th year, on your 64th birthday....
Can you Solve it in Excel Please Today is your 25th birthday.  You have decided that it...
Can you Solve it in Excel Please Today is your 25th birthday.  You have decided that it is necessary to plan your own retirement since you are not confident that government benefits will be available when you retire.  You will make annual payments into an account earning 5% APY starting on your next birthday (26th) a year from now.  Your last payment will occur on your 70th birthday.  You have decided that you need to plan for payments of $500,000 per year and that...
You have a trust fund that was set up by your great uncle which will pay...
You have a trust fund that was set up by your great uncle which will pay you $40,000 on your 40th birthday and $10,000 on your 50th birthday. Assume that once you receive these two payments you can also invest then at a nominal rate of 5.5% to increase your retirement savings. Assume you still want all of your retirement savings contributions to be a constant annual nominal amount (an annuity). Calculate the amount you will now need to save...
You are due to receive $600 every 3 months from your parents starting 3 months from...
You are due to receive $600 every 3 months from your parents starting 3 months from the day you were born. If the three-month interest rate is 0.2%, what is the value of these payments on your 19th birthday?
You expect to receive $3,900 upon your graduation and will invest your windfall at an interest...
You expect to receive $3,900 upon your graduation and will invest your windfall at an interest rate of .59 percent per quarter until the account is worth $5,350. How many years do you have to wait until you reach your target account value? rev: 09_18_2019_QC_CS-181155 Multiple Choice 13.43 years 11.76 years 12.54 years 14.47 years 13.55 years
Today is your 40th birthday (this is beginning of period, i.e., time 0). You expect to...
Today is your 40th birthday (this is beginning of period, i.e., time 0). You expect to retire at age 65 and actuarial tables suggest that you will live to be 85. You want to move to Hawaii when you retire (on your 65th birthday). You estimate that it will cost you $50,000 to make the move on your 65th birthday. Starting on your 65th birthday and ending on your 84th birthday (all withdrawals are at the beginning of the year),...
You are scheduled to receive annual payments of $21,400 for each of the next 23 years....
You are scheduled to receive annual payments of $21,400 for each of the next 23 years. Your discount rate is 8 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT