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)

Expert Solution

PV =1500
Number of Years =6
Rate =9%
FV =PV*(1+r)^n =1500*(1+9%)^6 =2515.65

FV using excel formula =FV(9%,6,0,-1500) =2515.65

jeff jeffy answered 2 years ago

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...

How much would you have to invest today to receive: a. $100,000 in 6 years at...

How much would you have to invest today to receive: a. $100,000 in 6 years at 12 percent? b.$100,000 in 15 years at 12 percent? c.$10,000 at the end of each year for 25 years at 12 percent d.$75,000 at the end of each year for 25 years at 12 percent?

If you invest $4,000 today, how much will you have in 5 years at 6% (compounded...

If you invest $4,000 today, how much will you have in 5 years at 6% (compounded semiannually)?

You plan to invest $2,000 today in a mutual fund that earns 6% annually for 5...

You plan to invest $2,000 today in a mutual fund that earns 6% annually for 5 years. Which of the following statements is TRUE? Select one: a. All else being equal, if the interest rate doubles, the future value doubles. b. All else being equal, if the number of periods doubles, the future value doubles. c. All else being equal, if both the interest rate and the number of periods double, the future value doubles. d. All else being equal,...

1. George and Sarah each invest $1,500 today. George is more conservative and invests his money...

1. George and Sarah each invest $1,500 today. George is more conservative and invests his money in an account that is expected to earn 5% a year. Sarah is an aggressive investor and invests her money in an account that is expected to earn 18% a year. Assume George and Sarah each earns their expected rates of return. After 100 months, how much more money will Sarah have than George?

3. You are planning for your retirement. You have 3,000 today to invest and plan on...

3. You are planning for your retirement. You have 3,000 today to invest and plan on putting in 300 a month until you retire in 30 years at an interest rate of 11%.The month of retire, you estimate needing 20,000 in expenses. After that, you wish to pull money each month so that there is still 500,000 at the end of your retirement 35 years after you retire. During this time, you can only earn 7% per year. How much...

Suppose you invest $5,000 today, and plan on continuing this contribution for the next 15 years....

Suppose you invest $5,000 today, and plan on continuing this contribution for the next 15 years. Afterwards, you are going to stop contributing to the account, but you will not need the money for another 25 years. Assuming that you can earn 8% on this account for the life of the account, how much will you have at the end of this period?

Question

You have $1,500 to invest today. You plan to spend the money in 6 years and...

Solutions

Expert Solution

Related Solutions