Question
In: Finance
You need $18,000 in today's buying power 4 years from now. You can earn 3% APR...
You need $18,000 in today's buying power 4 years from now.
You can earn 3% APR in real terms on your investments.
How much do you have to invest, in nominal terms (the same amount
each year), starting next year for 2 years, to just meet your
needs, if you expect inflation to be 4% per year?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You need $25,000 in today's buying power, 5 years from now. You can earn 2% APR...
You need $25,000 in today's buying power, 5 years from now. You
can earn 2% APR in real terms on your investments. How much must
you invest (a different amount each year), starting next year for 4
years to just meet your needs, if you expect inflation to be 4% per
year? The amount you invest should just maintain the real cash
values.
1. You would like to have the current equivalent in terms of today's buying power of...
1. You would like to have the current equivalent in terms of
today's buying power of $4,000 in years 4 5 and 6 How much would
you have to invest in years 1, 2 and 3 (the same amount in each
year in nominal terms) to fund this level of real
consumption?
You expect inflation to be 3% per year over that time period. Your
investments earn 7% per year in nominal terms.
$3,265
$3,781
$3,857
$3,706
2. You would...
You will retire 20 years from now, and you think you will need an income of...
You will retire 20 years from now, and you think you will need
an income of $6,000 per month for 20 years after you retire.
You will begin saving for retirement by saving $700 per month
for the next 10 years. How much will you have to save each month in
the 10 years after that to have enough to meet your retirement
goal?
The interest rate is 9% APR.
Round your answer to the nearest dollar.
You will retire 20 years from now, and you think you will need an income of...
You will retire 20 years from now, and you think you will need
an income of $6,000 per month for 20 years after you retire. You
will begin saving for retirement by saving $700 per month for the
next 10 years. How much will you have to save each month in the 10
years after that to have enough to meet your retirement goal? The
interest rate is 9% APR. Round your answer to the nearest
dollar.
Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest...
Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6
years from now. Interest is 5% for the first 3 years and 7% for the
last 3 years.
a) What is the uniform series equivalent of the fund (uniform
cash flow at end of years 1 through 6)?
Jimmy deposits : $ 4,200 - now, $ 2,100 - 3 years from now, and $...
Jimmy deposits :
$ 4,200 - now,
$ 2,100 - 3 years from now, and
$ 4,200 - 6 years from now.
Interest is 3 % for the first 3 years and 11 % for the last 3
years.
What is the uniform series equivalent of the fund (uniform cash
flow at end of years 1–6)?
(Hint : Incorrect Answer = $3456)
A company owes payments of $100 2, 4, and 6 years from now. A company can...
A company owes payments of $100 2, 4, and 6 years from now. A
company can purchase zero coupon bonds with terms of 1 year and 5
years both with an annual effective rate of 10%. How much of each
type of bond should be purchased to achieve Reddington
Immunization? Verify that you have achieved Reddington
Immunization.
You want to buy a new sports car 3 years from now, and you plan to...
You want to buy a new sports car 3 years from now, and you plan
to save $4,000 per year, beginning one year from
today. You will deposit your savings in an account that
pays 6.5% interest. How much will you have just after
you make the 3rd deposit, 3 years from now?
Group of answer choices
$12,986
$12,635
$12,364
$12,486
You want to buy a new sports car 3 years from now, and you plan to...
You want to buy a new sports car 3 years from now, and you plan
to save $4,200 per year, beginning immediately from today. You will
deposit your savings in an account that pays 9.5% interest. How
much will you have 3 years from now?
a. $11,973
b. $12,603
c. $13,267
d. $13,835
e. $15,149
Question 4/ Firm D is planning its first dividend in 3 years from now. The dividend...
Question 4/ Firm D is planning its first dividend in 3 years
from now. The dividend per share by the end of year 3 is $1.4. Firm
C has an equity Beta of 1.2. The T-bill rate is 2.5% and the return
on the equity market index is 7.5%. The dividends are expected to
grow from year 3 to years 6 by 13.5% and during year 6 by 9.5%.
From year 6 to year 11 they are expected to grow...
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