How long does it take to become a millionaire? A $100,000 investment will hit $1 million in 37 years at an annual interest rate of 6.42%. How long will it take to become a millionaire if the annual interest rate increases to 7.46%?
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A: INVESTMENT RETURNS
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How long does it take to become a millionaire? A $100,000 investment will hit $1 million in 37 years at an annual interest rate of 6.42%. How long will it take to become a millionaire if the annual interest rate increases to 7.46%?
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- You want to be a millionaire when you retire in 40 years. How much do you have to save each month if you can earn an annual return of 10.8 percent? How much do you have to save each month if you wait 10 years before you begin your deposits? How much do you have to save each month if you wait 20 years before you begin your deposits?Assume you can earn 8.6% per year on your investments. a. If you invest $190,000 for retirement at age 30, how much will you have 35 years later for retirement? b. If you wait until age 40 to invest the $190,000, how much will you have 25 years later for retirement? c. Why is the difference so large? *** a. If you invest $190,000 for retirement at age 30, how much will you have 35 years later for retirement? The future value is $ (Round to the nearest dollar)Assume you can earn 8.6% per year on your investments. a. If you invest $110,000 for retirement at age 30, how much will you have 35 years later for retirement? b. If you wait until age 40 to invest the $110,000, how much will you have 25 years later for retirement? c. Why is the difference so large?
- How long will it take you to become a millionaire if you invest P15, 000 at 25% compounded semi-monthly?You have an investment opportunity that promises to pay you $18, 499 in four years. Suppose the opportunity requires you to invest $15,813 today. What is the interest rate you would earn on this investment?Assume you can earn 8.6% per year on your investments. a. If you invest $110,000 for retirement at age 30, how much will you have 35 years later for retirement? b. If you wait until age 40 to invest the $110,000, how much will you have 25 years later for retirement? c. Why is the difference so large? a. If you invest $110,000 for retirement at age 30, how much will you have 35 years later for retirement? The future value is $ (Round to the nearest dollar.) b. If you wait until age 40 to invest the $110,000, how much will you have 25 years later for retirement? The future value is $ (Round to the nearest dollar.) c. Why is the difference so large? (Select from the drop-down menu.) The difference is large because the compounding effect is accentuated the the time of investment
- Suppose an investor wants to have $5 million to retire in 25 years from now. How much would she have to invest today with an annual rate of return equal to 15%?You know that you'll inherit $10,000 in 19 years. If you borrow $6,000 now and plan to pay it off with the money you'll inherit, what is the highest annual interest rate you can afford on the loan?Suppose you want to save up $100,000 to buy a house in 10 years. You plan to invest a lump sum amount of $50,000 today in a savings account that pays an annual interest rate of 6%. How long will your investment take to grow to $100,000? Will you be able to buy your desired house with the current investment after 10 years?
- Assume Sheryl Jenkins wants to accumulate $12,241.30 in two years. She currently has $10,919.00 to invest. What interest rate must she earn on her investment (that is if she deposits $10,919.00 today) to have $12,241.30 exactly two years from today?How much should you invest each month in order to have $800,000 if your rate of return is 7.5% compounded monthly and you want to achieve your goal in 40 years? How much interest will you earn? How much should you invest each month in order to have $800,000 if you want to achieve your goal in 20 years? If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 7.0% per year on your investments and you plan to retire in 29 years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 28 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 28th withdrawal (assume your savings will continue to earn 7.0% in retirement)? d. If, instead, you decide to withdraw $70,000 per year in retirement (again with the first withdrawal one year after retiring), how…