In three years you plan to take a family vacation to Florida at an estimated cost of $3500. If you can earn an average of 4% per year, how much must you invest today to have the funds needed for the planned vacation? O A. $3,937 O B. $3,920 Oc. $3,111 O D. $3,125
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- Problem 5: In three years you plan to go for a vacation in Venice at an estimated cost of $3500. If you can earn an average of 4% per year, how much you invest today in order to have the funds needed for the planned vacation?To fund your dream around-the-world vacation, you plan to save $1,275 per year for the next 13 years starting one year from now. If you can earn an interest rate of 5.77 percent, how much will you have saved for your vacation? Multiple Choice $22,472.32 $22,690.69 $21,222.54 $22,904.08 $23,722.09You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy the investment, you will receive $50 every month for five(5)years. Payment will be made at the end of each month. If your required rate of return is 9% how much should you be willing to pay for this investment? Group of answer choices $4,632.87 $2,735.25 $2,525.10 $2,408.67
- You decided to save every month for the next ten years a certain amount so that you can make a down payment for a house in your early thirties. If you think you can make an annual return of 9% and you think you will need to save $50,000 for the down payment, how much should that monthly payment be? a. $258 b. $464 c. $3291 d. $536You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $33,000. You feel you can earn an APR of 10.8 percent compounded monthly and plan to save $395 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation? Multiple Choice O 5.96 years 6.96 years 5.47 yearsYou have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $21,000. You feel you can earn an APR of 9.6 percent compounded monthly and plan to save $215 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation? Multiple Choice 6.04 years 8.14 years 6.90 years 6.30 years 5.57 years
- man.1 You expect to receive $5,000 at Graduation one year from now. Your plan is to invest this money at 6.5 percent, compounded annually, until you have 50,000. At that time, you plan to travel around the world. How long from now will it be until you can begin your travels?You want to build a house in 12 years. You estimate that the total cost will be $350,000. If you can put aside $20,000 at the end of each year, what rate of return must you earn in order to have the amount needed, assuming annual compounding? Multiple Choice Between 11% and 12% Between 8% and 9% 17% 6.63%Your friend offers you an investment opportunity that would yield $100 per year for the next 3 years. Using a discount rate of 10%, decide whether this is a good investment opportunity. What is the present value of this investment? a. $200.05 b. $250 c. $248.68 d. 258.20
- You are scheduled to receive $10,000 in three years. When you receive it, you will invest it for six years at 7.2 percent per year. How much will you have in nine years? (hint: draw a timeline) Multiple Choice $18,696.19 $17,290.61 $13,788.43 $15,176.40 $16,611.93Suppose you are offered an investment that will allow you to double your money in 6 years. You have $10,000 to invest. What is the implied rate of interest? 12.25% b. 13.5% c. 11.75% d. a. 15% Mike just decided to save money cach year for the next four years to help fund a new property. If it earned 1070 on its savings, what does the savings worth today (NPV)? End of Amount Saved: year: $ 15,000 $ 20,000 S 25,000 $ 30,000 4. $69,439 b. $72,288 c. $83,569 d. $95,365 a.You are saving for a fabulous vacation to your favorite tropical destination. You intend to travel in 4 years. You think you can earn 5.3% on your investment. How much do you need to deposit today to have $5,500 to bring you and a guest on vacation in four years? -$19,367.58 O-$4,473.52 O-$6,762.02 -$5,050.30