QUESTION 5 You own two investments, A and B, that have a combined total value of $17,400.00. Investment A is expected to make its next payment is expected to be $93.00 and subsequent payments are expected to grow by 0.56 percent per month forever. The ex 0.90 percent per month. Investment B is expected to pay $142.00 each quarter forever and the next payment is expected in 3 expected return for investment B? O-1.43% (plus or minus 2 bps) O 0.82% (plus or minus 2 bps) 0.53% (plus or minus 2 bps) 0.34% (plus or minus 2 bps) none of the answers are within 2 bps of the correct answer
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- esc 1 i Sophie has already saved $14,150 in her RRSP today and she plans to continue to add on equal deposits at the end of every year for the next 7 years. What annual payment is required to accumulate $70,000 in total at the end of the 7 years if the nominal rate of return on the investment is 6.33% compounded semi-annually? Enter the future value as a positive value in the FV box below. Enter PV and PMT as positive or negative values based on FV being positive. Report PMT accurate to the nearest cent. P/Y = C/Y= N= I/Y= PV = $ PMT = $ FV = $ The size of each annual payment required is (enter a positive value) $ Submit Question ! 1 Q A 6² F1 @ 2 20 F2 W # 3 E 80 F3 $ 4 a F4 R % 5 e F5 T A 6 si Y & 1 7 8: F7 U * 00 8 DI FEProblem 6 What is the annual equal amount of money you have to set aside to guarantee yourself an annual income to perpetuity of $15,000 starting in 41 years from now? You make the first payment in three years from now and the last payment in 40 years. Assume an interest rate of 7% (EAR).pse Module 11: Interest and Annuities Suppose you make a lump-sum investment of $10,000 in an account earning 7% interest compounded monthly. How many years will it take for your investment to grow to $100,000? SHOW YOUR WORK IN STEPS. (Round your answer to the nearest tenth of a year.)
- Problem 06.027 AW of a Permanent Investment How much must you deposit each year into your retirement account starting now and continuing through year 12 If you want to be able to withdraw $75,000 per year forever, beginning 34 years from now? Assume the account earns Interest at 9% per year. The amount to be deposited is determined to be $ 5242.86Problem 6.20 Stephanie Watson plans to make the following investments beginning next year. She will invest $3,292 in each of the next three years and will then make investments of $3,650, $3,725, $3,875, and $4,000 over the following four years. If the investments are expected to earn 12.7 percent annually, how much will Stephanie have at the end of the seven years? (Round answer to 2 decimal places, e.g. 15.25.) Future value Click if you would like to Show Work for this question: Open Show WorkPart 1 Tyler wants to have $25,000 in 25 years. He can only get 2.8% interest compounded quarterly. His bank will guarantee the rate for either 6 years or 8 years. • In 6 years, he will probably get a 4.7%/a compounded quarterly for the remainder of the term. • In 8 years, he will probably get a 4.8%/a compounded quarterly for the remainder of the term. Which is the better investment option? 6 year 8 year Question 4 Part 2 Tyler wants to have $25,000 in 25 years. He can only get 2.8% interest compounded quarterly. His bank will guarantee the rate for either 6 years or 8 years. • In 6 years, he will probably get a 4.7%/a compounded quarterly for the remainder of the term. • In 8 years, he will probably get a 4.8%/a compounded quarterly for the remainder of the term. How much does Tyler need to invest?
- Part 1 Jane Doe plans to make eleven end-of-month payments of$16,000each on a short term investment account. The account earns a monthly interest rate of 3%.a. What is the present worth (i.e.,P0)of these payments? b. Repeat Part (a) but assuming that they are beginning-of-month payments. a. The present equivalent of the payments is $ (Round to the nearest dollar.) b. The present equivalent of the payments is $. ( Round to the nearest dollar )Question 15 What is the present value of your investment if you deposited $100.00 into your bank account at the beginning of each quarter for 10 years if the bank pays interest is 6% compounded semi-annually? a. $2,854.90 b. $3,036.46 c. $1,628.23 d. $3042.28 e. $900.17Question 11 You need to have $100,000 in five years to pay off a home equity loan. You can invest in an account that pays 5.25 percent compounded quarterly. How much will you have to invest today to attain your target in five years? (Round to the nearest dollar.) $69,911 $71,493 $77,044 $81,421
- Question 40 Chanda wants to invesnt 6500 dollars in an investment account with APR 8.6% compounded 12 times per year. 1. Suppose A(t) is the amount in Chanda's investment account after t years. Then A(t) = 2. How long will it take to double the initial investment? Your answer should be given as the smallest year greater than or equal to the actual time. 3. How long will it take for the account to be 9 times the initial investment? Your answer should be given as the smallest year greater than or equal to the actual time. Submit Questionuestion 5 When you start your career, you decide to set aside $600 every month to deposit into an investment account. The investment firm daims that historically their accounts have earned an annual interest rate of 11.0% compounded monthly. Assuming this to be true, how much money will your account be worth after 25 years of depositing and investing? Round your answer to the nearest cent. Do not include labels or units. Just eriter the numerical value9. I wish to borrow $400,000 to buy a house. If the current interest rate on the loan is 4.8% per annum, then my monthly repayment at the end of every month for the next 30 years is: Select one: a. $2,908.66 b. $2,098.66 c. $2,090.30 d. $1,111.11