Pls help with below homework. You took an amazing class at the U that changed your life, so now you are going to invest for your retirement. Your tax bracket is 25% federal and 5% state. Your investment is in a federally and state tax free account that earns 11% each year, what interest rate are you effectively earning on your investment?
Q: Find the present worth today in real value corresponding to the cur- rent values shown below for a 4…
A: Given that; Inflation rate = 4 % Interest rate = 4 % We subtract the inflation rate from the nominal…
Q: Now suppose the stock market for the next 10 years has a strong growth rate. If you invested your…
A: Invested Amount (P)$1400 Interest rate(r) = 16% or 0.16 compounded annually, Time(T) = 10years To…
Q: If a bank offers an investment opportunity for which the interest is compounded quarterly, and you…
A: The nominal interest rate alludes to the financing cost prior to considering expansion. nominal can…
Q: An insurance company invests in two $100 par value bonds with 5% annual coupons and each maturing at…
A: Given : Par Value=$100 Annual coupon=5% Bond 1 : price =$103.87,Term=2 years Bond 2 :…
Q: You are offered to buy a 4 year coupon corporate bond at the beginning of its 7th month on its third…
A: Given: There is a coupon corporate bond for = 4 years Beginning of its 7th month on its third year…
Q: The tree in Karura forest grow such that the volume of timber at time t can be represented as 900t +…
A: Volume of timber at time 't' is given by the following function: Q(t) = 900t + 50t2 + 60t3 + 7t4…
Q: 17. You bought a house a year ago for $250,000, borrowing $200,000 at 10% on loan (with monthly…
A: The term mortgage refers to a loan used to purchase or maintain a home, land, or other types of real…
Q: 11. Two years ago, you bought a fifteen- year bond at its par value of P1,000. The coupon rate on…
A:
Q: 10-year government coupon bond has a face value of $1,000 and a coupon rate of 5% paid annually.…
A: Time = 10 years Face value = 1000 $ Coupon rate = 5% or 50 $ annually Current rate = 6 % annually…
Q: BJECT: ENGINEERING ECONOMICS Show the complete solution. The final answer is already provided.…
A: Given Interest rate = 10 % Salary in 1st year = 60000 P Constant increase in salary = 5000 p Time =…
Q: Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 9% coupon rate…
A: The given information: Interest payment is $45 Purchasing price is $1,000 Maturity period is 10…
Q: Suppose that your forecasted interest rates on one- year T-bill issued by Bangladesh Bank are 9.25%,…
A: The term structure of interest rates shows the interest rates of similar quality bonds at different…
Q: Suppose a ten-year bond with a $10,000 face value pays a 5.0% annual coupon (at the end of the…
A: Given: The face value of the bond is $10,000 The annual coupon rate is 0.05(5%) Annual coupn…
Q: Let's revisit the income stream from vour endowment to SCU in the first prob- lem, which is S50 K…
A: Given, The expected payment in the first period of endowment = D= $50 K = $50,000 The growth rate…
Q: 3. A business man wishes to earn 7% on his capital after payment of taxes. If the income from an…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: You are considering taking out a two-year loan of$1,000 from a bank, on which you can pay…
A: Case 1 : Compound yearly interest Principal (P) = $1,000 Interest rate (r) = 1% Time period (t) = 2…
Q: How long roughly will it take SR 2,500 to become SR 1 million at 18% interest rate? OA7.8 years O B.…
A: here by using the future value formula we calculate the time period , so the calculation of the…
Q: Suppose that a printing firm considers its production as a continuous income stream. If the annual…
A: We are going to use concepts such as Present value and future value to answer this question.
Q: Assume a bond with a remaining maturity of 3 years a. If the face value is $10,000 and coupon…
A: Given Face value of coupon bond FV =$10000 Coupon payment (C)= $500 per year yield to maturity…
Q: Suppose you are considering working at a local coffee shop 5 nights a week. You expect to save $125…
A: * SOLUTION :- From the given information the calculation is given below
Q: Question 4 Max puts R30 000 down on a second-hand car and contracts to pay the balance in 24 monthly…
A: a) Down payment = 30,000 Monthly payment (P) = 4,000 n = 24 Interest rate = 24% per annum compounded…
Q: 35. If you know that you can afford a $500 per month car payment for the next 48 months, the…
A: Answer: option c (Be able to afford something less than a $24,000 car) Explanation: If a person can…
Q: 4. A P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at th e…
A: Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple…
Q: You buy a house for $210000, and take out a 30-year mortgage at 6% interest. For simplicity, assume…
A: Please post B part separately. Answer A is step 1
Q: Let j be the compound interest rate for the t-year period from time s to time s + t, and let dj be…
A: As per the guidelines, I am suppose to solve 1 question at a time. Thank you.
Q: When you take your job, you decide to start saving for your retirement. You put $5,000/yr into the…
A: Monthly investment A= 5000 Rate of interest = 8% / year We have to calculate the amount of total…
Q: A worker with an annual discount rate of 8 percent currently resides in Nigeria and is deciding…
A: Given, The discount rate = r = 8% or 0.08 The number of periods = t =3 Earning per worker in…
Q: 2 A capital investment can be purchased for an immediate outlay of S100,000. The imvestment is…
A: Capital investment is the acquisition of physical assets by a company for use in furthering its…
Q: In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the…
A: Present value is the amount of a normal revenue source or income limited at the current pace of…
Q: a) Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest…
A: (a)Initial deposit = $350Interest rate = 6 percent per annumTime period = 4 yearsTo determine:…
Q: If Reybien got a character loan of P10,000 from a bank with 18 percent interest per annum, how much…
A: The principal amount is given which is 10,000. We are required to find out the amount of interest…
Q: Compute the future value of $10,000 at an interest rate of 10 percent 5, 10, and 15 years into the…
A: Given Present value P = $10,000 We have to calculate the future value Formula for future value is…
Q: 1. If a certain machine undergoes a major overhaul now, its output can be increased by 20% - which…
A: * SOLUTION :- **According to the guidelines I answered 1st question only . 2nd question…
Q: Lourdes has just retired and plans to consume $8,640 from the retirement account every year for the…
A: In economics, present value refers to the current value of a future stream of cash flow. The present…
Q: Suppose that you are considering an investment, which would require you to pay $1,000 up front…
A: Net present value is the difference between the present value of benefits and the present value of…
Q: QUESTION 6 What is the net present value of receiving $250 in 5 years from now if the interest rate…
A: Present value is the current worth of a future sum of money given a specified rate of return.
Q: Some friends of yours have just had a child. Thinking ahead, and realizing the power of compound…
A: "since you have posted a question with multiple sub-parts, we will solve first three sub parts for…
Q: 3. ABC Corporation issued today a bond in favor of Mr. Barboncito and the bond has a face value of…
A: Answer in Step 2
Q: of each year. If the interest rate is 5 percent, determine the present value of the stream of:…
A: Accounting profit does not account for implicit cost while the economic profit account for the…
Q: Please show work
A: The investor has to choose between having $25,000 now or having $50,000 in 15 years.Interest rate is…
Q: You plan to retire in 35 years and can invest to earn 6.85 percent. You estimate that you will need…
A: The term cash flow refers to the net amount of cash and cash equivalents being transferred in and…
Q: Consider a retired gentleman who starts to collect his Social Security benefits at the age of 66.…
A: Time period is denoted by ‘n’ and the interest rate is denoted by ‘i’. If the person lives 20 years…
Q: Below is a year-end cash flow diagram in dollars, deferred in some years. MARR = 2.7% Find the value…
A: Dear learner you have posted multiple questions, as per our policy we have solved only first…
Q: Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of…
A: *Answer:
Q: As a manager of your company, you are considering to go for a project, with an initial outlay of…
A: As a manager of your company, you are considering to go for a project, with an initial outlay of…
Q: What is the current net single premium value of the 4-year periodic life annuity with increasing…
A: Premium is increasing by 10 TL.
Q: Betty will need $12,000 in five years to pay for a major overhaul on her tractor engine. She has…
A: Investment can be calculated by using the following formula.
Q: 3.34 (LG 3.5) Gail has won a lottery that pays her $100 000 at the end of this year, $110 000 at the…
A: Present value is a concept that states that the value of money today is more valuable than the same…
Q: suppose that you invest $100 today in a risk-free investment and let the 4 percent annual intrest…
A: Here we calculate the value of $100 after the 4 year using the future value formula which are as…
Q: Problem 5-Selling an asset You bought an apartment. Its market value as of today is 150 000 zt. Each…
A: here we calculate the given by following method as follow;
Pls help with below homework.
You took an amazing class at the U that changed your life, so now you are going to invest for your retirement. Your tax bracket is 25% federal and 5% state. Your investment is in a federally and state tax free account that earns 11% each year, what interest rate are you effectively earning on your investment?
3. How much will you have effectively earned if you invest $4,000 each year for the next 35 years (please use the rate you got in question 2)?
Step by step
Solved in 2 steps
- You plan to retire in 35 years and can invest to earn 6.85 percent. You estimate that you will need $82,000 at the end of each year for an estimated 30 years after retirement, and you expect to earn 4.5 percent during those retirement years. How much do you need to set aside at the end of each year to accumulate the money necessary for your retirement? (Assume year-end cash flows.) I will need this much at retirement _____________and will need to set aside ___________per year (at the end of each year.1. you are earning 7% annually and contributing the max allowable each year: if you want to have at least $1,000,000 in your IRA by age 60, what is the latest age you can start investing? b. Suppose you invest $3,000 and earn 7% interest per year on this investment. How many years will it take for your total investment to be worth $6,000 c. imagine the interest rate on your savings account was 0.5% per year and inflation was 2% per year. After one year, your ability to buy something with the money in this account with be: Question options: more than today less than today exactly the same impossible to sayYou are thinking of investing $3600 this year. You have received advice from family members. • Aunt Anne recommends investing in the stock market with a 9.45% average rate of return. • Uncle Rick recommends investing in a 5.60% certificate of deposit (CD). • Grandpa recommends investing in a 0.53% savings account. How much money will you have at the end of 10 years if you pick Aunt Anne's advice? money after 10 years: S How much money will you have at the end of 20 years if you pick Uncle Rick's advice? money after 20 years: $ How much money will you have at the end of 40 years if you pick Grandpa's advice? money after 40 years: $
- Living in retirement 25 years Retirement age 65 Annual income $100,000 Interest Rate 6% Need 2 million to live comfortably What is the present value of the retirement income needs? ( this is how much you will need k retirement savings on the day you retire in order to meet your goals) How much must you save each year (or each month) during your working years to meet this goal? ( compute the required payment to achieve a future value equal to the amount you need to have on the day you retire, which was computed above) Is the goal realistic?3. You are looking to retire in 35 years and your company has a 401K plan that has a 5.2% annual return. You deposit $400 a month from your paycheck into the account. Calculate the amount of your retirement when you retire.Every year you pay your neighbor $150 to clean the gutters at your house. You saw an ad on late night TV for a new product--GutterSnipe--which sits in the gutters and prevents leaves getting in. Your interest rate is 8%, compounded daily, and you plan on being in the house another 10 years. You assume that any potential buyer won't be interested/notice that you have installed GutterSnipe on your house. What is the most you would be willing to pay to buy GutterSnipe for your house? $978 $965 $1010 $992
- 14. When you complete your MBA, you will treat yourself to a new car. The car you want to buy costs $25,000 and you have enough to put 20% down in cash. You can take out a loan for the rest of the cost of the car. Calculate your monthly car payments assuming the auto finance department states that the annual interest rate on the car loan is 8% and you pay the loan over a 3-year period.QUESTION 1 Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back at the end of year 8? QUESTION 2 Calculate the amount of interest on an investment of AED 103,971 at 8% simple interest for 5 years. QUESTION 3 If you deposit today $7,335 in an account for 6 years and at the end accumulate $10,885, how much compound interest rate (rate of return) you earned on this investment ? QUESTION 4 You will deposit 12,025 at 10% simple interest rate for 9 years, and then move the amount you would receive to an investment account at 12 % compound rate for another 3 years. How much money would you have at the end of the entire period ?Fact 21 Eileen has 2.5% of her earnings deposited into her retirement plan. If $150 per month is deposited in the plan, find ner monthly and yearly earnings. 8. Her monthly earnings are $ (Round to the nearest cent as needed.) Her yearly earnings are $ (Round to the nearest cent as needed.) 09 C.SU7 365 https://xlitemprod.pearsoncmg.com/api/v1/print/math
- Problem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is$17,000and the interest rate is4.2%. What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.4. Compute the life earnings of an engineer with a Bachelor degree that starts working with a salary of $65,000 and expected average raises of 2.5% per year and plans to work for 35 years. The bank rate is 3.5% per year. Give your answer in terms of value at retirement.Economics In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the 54-month interest rate is currently 4%, with a volatility of 120 basis points (bps). Explain, using equations with properly-defined mathematical notation, how to map this cash flow to vertices at 4 years and 5 years, in such a way that the volatility of the present value of the mapped cash flow remains at 120 bps. Suppose the 4-year rate has a volatility of 110 bps and the 5-year rate has a volatility of 150 bps, and their correlation is 0.9. How much should be mapped to each vertex. Give your answer in PV terms and round your answers to whole $ values.
