The Blake’s life goal has been to buy a property in the country and live the...

The Blake’s life goal has been to buy a property in the country and live the quiet life 10 years from now. They need to save a $200,000 deposit to achieve this dream. They have $60,000 invested now and they estimate they can save $5000 p.a. for 5 years and then $10,000 p.a. for the 5 years following this. They have come to you see if they can achieve this goal.

Investments:

NAB savings Account (Janet)

Vanguard Bond Fund (Janet)

Macquarie Group Ltd Shares (Steven)

20,000

Calculate the future value of the investment portfolio 10 years from now assuming it will earn a 5% p.a. after tax. In this calculation you should include the FV of the current investments and the FV of the contributions that Blake’s estimate that they make over the next 10 years. Assume that contributions are made at the end of the year and that the first contribution will be made 365 days from now. Finally, explain one strategy that Janet and Steven could reach their goal more quickly and show the influence that this will have. If assumptions are made, these assumptions must be clearly stated.

Expert Solution

ekkarill92 answered 1 year ago

The goal of any firm has been assumed to be to:

The goal of any firm has been assumed to be to: none of the above maximize the difference between marginal revenue and marginal cost. produce at the socially optimal level of output. choose that level of output which will minimize its variable costs. choose that level of output which will maximize its total revenues

“The right to live in a home and use the property as long as a person...

“The right to live in a home and use the property as long as a person live” is an example of what kind of freehold estate? Please explain why? “No right of survivorship exists for individual tenants” is an example of what kind of leasehold estate? Please explain why? No right of survivorship exists for individual tenants when the title is held as tenants in common. 3 What are the differences between fee simple and fee tail?

The country of Solidia is politically very stable and has a long tradition of respecting property...

The country of Solidia is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, we would expect Solidia’s a. real interest rate to rise. b. real exchange rate to rise. c. net exports to rise. d. None of the above is likely. Please don't just tell me the answer. Please walk me through the process of how you came to choose the answer. I am confused.

It has been suggested that the general (or overall) goal of business legislation is to maximize...

It has been suggested that the general (or overall) goal of business legislation is to maximize choice in the marketplace. Of the most prominent marketing philosophies (production, product, sales, marketing, and societal marketing), which do you believe is most consistent with this goal? Explain your selection of a philosophy.

Product Profitability Porter Insurance Company has three lines of insurance: automobile, property, and life. The life...

Product Profitability Porter Insurance Company has three lines of insurance: automobile, property, and life. The life insurance segment has been losing money for the past five quarters, and Leah Harper, Porter’s controller, has done an analysis of that segment. She has discovered that the commission paid to the agent for the first year the policy is in place is 55 percent of the first-year premium. The second-year commission is 20 percent, and all succeeding years a commission equal to 5...

With globalization, how has intellectual property, such as trademark been protected?

Emma has not yet decided whether she wants to rent or buy a property here in...

Emma has not yet decided whether she wants to rent or buy a property here in Oxford and she is asking your team to help her make this financial decision. Her monthly budget is $1,500 to cover any housing expenses including rent or owners’ costs (example: mortgage, hazard insurance, property taxes, and Home Owner Association fees). A good start of the analysis is by applying financial concepts such as the “time value of money.” Emma’s contract is for three years...

Imagine that we live in a country with free public education that is "take it or...

Imagine that we live in a country with free public education that is "take it or leave it" (i.e. families can either send their kids to public schools, or they can spend their own money to send them to private schools, but they can not add extra educational spending on top of the public schools). Now, assume the government implements a universal voucher program for education (i.e. families are given a fixed dollar amount per child that they can only...

If you live in a country with a political system that you are against(or you're not...

If you live in a country with a political system that you are against(or you're not satisfied with it) what political parties/movements would you use in order to change the current political system? Give a real life example

Have you ever been involved in a lease-or-buy decision at work? In your personal life? Please...

Have you ever been involved in a lease-or-buy decision at work? In your personal life? Please describe this situation and be sure to include the following information: What factors went into making the decision to lease or to buy? Was the decision made in a formal reporting format or as an informal decision? Do you think this was the best way to make the decision? If not, what would you change? Why? In hindsight, do you think that you made...

Question