Question
In: Finance
If you invest $2589 for 6 years at 9.8% per year, and then the money stays...
If you invest
$2589 for 6 years at 9.8% per year, and then the money stays invested and earns 6.5% per year for
3 more years, what would be your annual (average) rate of return for the entire 9 years? (In percent, rounded to 3 decimals.)
Solutions
jeff jeffy answered 3 months agoRelated Solutions
You have $1,500 to invest today. You plan to spend the money in 6 years and...
You have $1,500 to invest today. You plan to spend the money in
6 years and believe you can earn 9% on your investment. What do you
expect the value of your investment to be when you want to spend
your money?
(Please complete in excel if possible)
Quantitative Problem 1: You plan to deposit $1,500 per year for 6 years into a money...
Quantitative Problem 1: You plan to deposit
$1,500 per year for 6 years into a money market account with an
annual return of 2%. You plan to make your first deposit one year
from today.
What amount will be in your account at the end of 6 years? Do
not round intermediate calculations. Round your answer to the
nearest cent.
$
Assume that your deposits will begin today. What amount will be
in your account after 6 years? Do not...
You invest 800$ per year at the beginning of each year for 8 years at an...
You
invest 800$ per year at the beginning of each year for 8 years at
an interest rate of 8% the future value of your koney will be equal
to approximately
A 9190
B 18508
C 18989
D none of the above
You invest in a project that will pay you $500 per year for 5 years and then pays $750 per year for the following 10 years
You invest in a project that will pay you $500 per year for 5 years and then pays $750 per year for the following 10 years (assume that all payments are made at the end of the year). You require a 6% rate of return on this type of investment. Give your return requirement, what is the maximum amount that you would be willing to pay today for the cash flow stram associated with this project? Round only your final...
Suppose you invest $200 per month for a period of 30 years. a) How much money...
Suppose you invest $200 per month for a period of 30 years.
a) How much money would you have at
the end of the 30-year period, assuming that the yearly interest
rate is 12% compounded monthly? You can assume that the payments
are deposited at the end of each month. (Hint: write the amount
accumulated in the bank for the first few months, and try to get a
pattern out of that.) (answer: $698,992.83)
b) Using the same approach, indicate...
You invest $35,000 today and $3800 per year for 30 years. Assuming you earn an 8.4%...
You invest $35,000 today and $3800 per year for 30 years.
Assuming you earn an 8.4% rate of return, how much will you have at
the end of the 30th year? How much more do you have
after 40 years? Of that additional money, how much came from your
contributions and how much from investment income?
Show work hand written
You are investing for retirement starting at age 25. You invest $10,000 per year. During years...
You are investing for retirement starting at age 25. You invest
$10,000 per year. During years 1-30 your investments earn 15% per
year. During years 31-40 you move to more conservative
estimates earning 5% per year. How much will you have saved when
you retire at age 65? Assume investments occur at the
beginning of each year. What is the IRR of this investment stream?
(answer is IRR=11.9%) In excel functions
You invest $35,000 today and $3800 per year for 30 years. Assuming you earn an 8.4%...
You invest $35,000 today and $3800 per year for 30 years.
Assuming you earn an 8.4% rate of return, how much will you have at
the end of the 30th year? How much more do you have
after 40 years? Of that additional money, how much came from your
contributions and how much from investment income?
James would like to invest some money every year-end for 17 years in a money market...
James would like to invest some money every year-end for 17
years in a money market account earning 5% per year, and then begin
to withdraw money from the account to finance his son’s education
for 4 years. James thinks that his son should have $35,000 for the
first year of college at the start of the 19th year, and would like
to increase that amount by 4% every year to compensate for
inflation. How much will James’ first deposit...
James would like to invest some money every year-end for 17 years in a money market...
James would like to invest some money every year-end for 17
years in a money market account earning 5% per year, and then begin
to withdraw money from the account to finance his son’s education
for 4 years. James thinks that his son should have $35,000 for the
first year of college at the start of the 19th year, and
would like to increase that amount by 4% every year to compensate
for inflation. How much will James’ first deposit...
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