### Our Services

Get 15% Discount on your First Order

# 1.What is the present value of a security that will pay \$42,000 in 20 years if securities of equal risk pay 9% annually? Do not round intermediate

1.What is the present value of a security that will pay \$42,000 in 20 years if securities of equal risk pay 9% annually? Do not round intermediate calculations. Round your answer to the nearest cent.

2. Your parents will retire in 16 years. They currently have \$370,000 saved, and they think they will need \$2,150,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don’t save any additional funds? Round your answer to two decimal places.

3. You have \$10,463.18 in a brokerage account, and you plan to deposit an additional \$6,000 at the end of every future year until your account totals \$250,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.

4. An investment will pay \$100 at the end of each of the next 3 years, \$200 at the end of Year 4, \$400 at the end of Year 5, and \$600 at the end of Year 6. If other investments of equal risk earn 6% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.

Present value: \$  ??

Future value: \$  ??

5. Allison and Leslie, who are twins, just received \$10,000 each for their 22th birthday. They both have aspirations to become millionaires. Each plans to make a \$5,000 annual contribution to her “early retirement fund” on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 8% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 20% per year in the fund’s relatively short history.

a. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not round intermediate calculations. Round your answers to two decimal places.

Allison:  ??years

Leslie:  ??years

b. How large would Allison’s annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming their expected returns are realized? Do not round intermediate calculations. Round your answer to the nearest cent.

\$??

c. Is it rational or irrational for Allison to invest in the bond fund rather than in stocks?

I. High expected returns in the market are almost always accompanied by a lot of risk. We couldn’t say whether Allison is rational or irrational, just that she seems to have less tolerance for risk than Leslie does.

II. High expected returns in the market are almost always accompanied by less risk. We couldn’t say whether Allison is rational or irrational, just that she seems to have more tolerance for risk than Leslie does.

III. High expected returns in the market are almost always accompanied by a lot of risk. We couldn’t say whether Allison is rational or irrational, just that she seems to have more tolerance for risk than Leslie does.

IV. High expected returns in the market are almost always accompanied by less risk. We couldn’t say whether Allison is rational or irrational, just that she seems to have less tolerance for risk than Leslie does.

V. High expected returns in the market are almost always accompanied by a lot of risk. We couldn’t say whether Allison is rational or irrational, just that she seems to have about the same tolerance for risk than Leslie does.

6.You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save \$8,000 at the end of the first year, and you anticipate that your annual savings will increase by 15% annually thereafter. Your expected annual return is 4%. How much will you have for a down payment at the end of Year 3? Do not round intermediate calculations. Round your answer to the nearest cent.

7.
It is now December 31, 2020 (t = 0), and a jury just found in favor of a woman who sued the city for injuries sustained in a January 2019 accident. She requested recovery of lost wages plus \$600,000 for pain and suffering plus \$120,000 for legal expenses. Her doctor testified that she has been unable to work since the accident and that she will not be able to work in the future. She is now 62, and the jury decided that she would have worked for another 3 years. She was scheduled to have earned \$38,000 in 2019. (To simplify this problem, assume that the entire annual salary amount would have been received on December 31, 2019.) Her employer testified that she probably would have received raises of 3% per year. The actual payment for the jury award will be made on December 31, 2021. The judge stipulated that all dollar amounts are to be adjusted to a present value basis on December 31, 2021, using a 7% annual interest rate and using compound, not simple, interest. Furthermore, he stipulated that the pain and suffering and legal expenses should be based on a December 31, 2020, date. How large a check must the city write on December 31, 2021? Do not round intermediate calculations. Round your answer to the nearest dollar.

8. Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as \$35,000 has today. (The real value of his retirement income will decline annually after he retires.) His
retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 5%. He currently has \$50,000 saved, and he expects to earn 7% annually on his savings. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do not round intermediate calculations. Round your answer to the nearest dollar.

9.

10.Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the present value of an ordinary annuity?

· PMT x {1 – [1/(1 + r)nn]}/r

· PMT/r

· PMT x {[(1 + r)nn – 1]/r}

· PMT x {[(1 + r)nn – 1]/r} x (1 + r)

11.

 Line A: ?? Line B: ?? Line C: ???

Investments and loans base their interest calculations on one of two possible methods: the ——–
interest and the———–
interest methods. Both methods apply three variables—the amount of principal, the interest rate, and the investment or deposit period—to the amount deposited or invested in order to compute the amount of interest. However, the two methods differ in their relationship between the variables.

Assume that the variables I, N, and PV represent the interest rate, investment or deposit period, and present value of the amount deposited or invested, respectively. Which equation best represents the calculation of a future value (FV) using:

Compound interest?

· FV = PV x (1 + I)NN

· FV = PV / (1 + I)NN

· FV = (1 + I)NN / PV

Simple interest?

· FV = PV – (PV x I x N)

· FV = PV + (PV x I x N)

· FV = PV / (PV x I x N)

Identify whether the following statements about the simple and compound interest methods are true or false.

 Statement True False Everything else held constant, an account that earns compound interest will grow more quickly than an otherwise identical account that earns simple interest. After the end of the second year and all other factors remaining equal, a future value based on compound interest will  never exceed the future value based on simple interest. All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year.

Heather is willing to invest \$30,000 for six years, and is an economically rational investor. She has identified three investment alternatives (L, M, and P) that vary in their method of calculating interest and in the annual interest rate offered. Since she can only make one investment during the six-year investment period, complete the following table and indicate whether Heather should invest in each of the investments.

Note: When calculating each investment’s future value, assume that all interest is earned annually. The final value should be rounded to the nearest whole dollar.

 Investment Interest Rate and Method Expected Future Value Make this investment? L 5% compound interest M 4% simple interest P 7% compound interest

12.

## image5.png

Order a Similar Paper and get 15% Discount on your First Order

## Related Questions

### Please respond to the following: Define a policy argument or claim that is specific and evaluative. Topics may include crime, global warming,

Please respond to the following: Define a policy argument or claim that is specific and evaluative. Topics may include crime, global warming, unemployment, whistleblowing, and others. Discuss the benefits of structuring arguments before and while developing written documents.

### Distinguish between the income statement of a service company and a merchandising company. Identify at least two critical items of a multistep income

Distinguish between the income statement of a service company and a merchandising company. Identify at least two critical items of a multistep income statement of a merchandising company that are useful to creditors. Provide a rationale for your response.

### Evaluate these TWO comments on the merit of their arguments. See if you agree or disagree with what they say and explain why. The comments refer to this

Evaluate these TWO comments on the merit of their arguments. See if you agree or disagree with what they say and explain why. The comments refer to this topic – “It is argued that expansionary monetary policy of US Fed and other central banks and the resulting near zero interest rates

### Homework  In  All Marketers are Liars, Godin discusses the effect of a customer’s worldview on their reaction to products and services,

Homework  In  All Marketers are Liars, Godin discusses the effect of a customer’s worldview on their reaction to products and services, as well as its impact on their purchasing decisions and recommendations to friends and family. Consider how Godin’s ideas apply to you, by responding to the questions below: ·

### you need prepare a report based on the excel sheets that i have uploaded  FN626: FINANCE LIVE ASSIGNMENT 3: BITCOIN AND PORTFOLIO

you need prepare a report based on the excel sheets that i have uploaded  FN626: FINANCE LIVE ASSIGNMENT 3: BITCOIN AND PORTFOLIO DIVERSIFICATION Drawing on your modules to date and the Presentations made during Finance Live lectures, you are asked to complete the following individual project. Project “Given the returns

### you need prepare a report based on the excel sheets that i have uploaded

you need prepare a report based on the excel sheets that i have uploaded

### Assume you work in the marketing department for a luggage manufacturer.  You have been tasked with identifying cobranding opportunities.  Determine

Assume you work in the marketing department for a luggage manufacturer.  You have been tasked with identifying cobranding opportunities.  Determine  four companies/brands that would work well in being paired with the brand you choose.  Describe each of the cobranding opportunities in  detail.  Give  specific examples of how you would promote the two

### Empowerment hub for young women speak in 1st person I will put my name in the spots  Business Plan Step 1: Topic Step 2: Background Research Review

Empowerment hub for young women speak in 1st person I will put my name in the spots  Business Plan Step 1: Topic Step 2: Background Research Review literature related to your      topic to understand the theoretical and practical aspects. Identify key concepts, theories,      and empirical findings relevant to your research

### I need you to complete a presentation on ‘Financial Decision Making.’ Here are the specific requirements: Complete a PowerPoint presentation according

I need you to complete a presentation on ‘Financial Decision Making.’ Here are the specific requirements: Complete a PowerPoint presentation according to the requirements. Based on the PowerPoint, prepare a speech of approximately 15-20 minutes. Note: I have uploaded all the textbooks related to this course. I need you to

### Use the file attached  Visualization Plan. Please include the following  You will make at least six charts, including at least one geographic map, at

Use the file attached  Visualization Plan. Please include the following  You will make at least six charts, including at least one geographic map, at least one bar, at least one table, and at least one line chart. Describe how your data set(s) will provide enough variables to create the required

Stock Valuation Please answer the following stock valuation questions. If it’s helpful to do so, try charting out the answers where applicable. 1. Calculate the stock’s intrinsic value according to the information below: a. Stockholder’s required rate of return is 8.0% b. The rate of growth in earnings and dividends

### Consider the instructions for drafting the Research Method Rationale section of the Prospectus. Draft a Rationale to support “Diversity in State

Consider the instructions for drafting the Research Method Rationale section of the Prospectus. Draft a Rationale to support “Diversity in State Government Leadership” using qualitative research.    The rationale should be thorough and well-cited, with appropriate scholarly research guides or specific scholarly research you have sourced as a particular method

### Communicating the Change (Milestone 3) An important part of any change project is how the change is communicated to the

Communicating the Change (Milestone 3) An important part of any change project is how the change is communicated to the organization, to the change agents, to the line workers, to the customers, and to the public. Along with media relations issues, communicating change (especially in a publicly traded company) can

### create an excel spreadsheet using the attached files.  Download and review the “Excel Worksheet” found directly below the assignment instructions

create an excel spreadsheet using the attached files.  Download and review the “Excel Worksheet” found directly below the assignment instructions under “Attachments” for the data sets required to complete this assignment. Note: You must download this “Excel Worksheet,” not just view it in your browser, in order to see all

Instructions in file attached. 1. Go to: h ps://login.pearson.com/v1/piapi/piui/signin?client_id=dN4bOBG0sGO9c9HADrifwQeqma5vjREy&oku rl=h ps:%2F%2Fmycourses.pearson.com%2Fcourse-home&siteid=8313 2. Click on course “QMB4680” 3. On the Le Menu click on “Assignments” 4. Complete – Quiz #2 Ch. 12 – 15 (4 ques ons) 5. DO NOT Submit Quiz Maria Fernandez Highlight

### Please write 4 paragraphs on overview/Analysis of the attached PPT Woke, Inc. By Vivek Ramaswamy Chapter 4 and 5 Summary – Team 3 Jenny Hanes,

Please write 4 paragraphs on overview/Analysis of the attached PPT Woke, Inc. By Vivek Ramaswamy Chapter 4 and 5 Summary – Team 3 Jenny Hanes, Nolan Bielskis, Amy Thorpe, Luke Darland, and Ruqayah Algburi Insight (key issues) The ESG Bubble 1. Don’t just throw your money research the companies you

### Response to Professor J G The Opposite Class, What is the opposite of being a peacemaker?  What kind of

Response to Professor J G The Opposite Class, What is the opposite of being a peacemaker?  What kind of behaviors would that type of individual exhibit?

### 1.5 Assignment: Personal Reflection Journal: Specialization and Personal Growth Getting Started Journal writing has been

1.5 Assignment: Personal Reflection Journal: Specialization and Personal Growth Getting Started Journal writing has been shown to be effective in processing your ideas, preparing for assignments, reviewing your options, noting your questions and concerns, and more. The journal is a private communication between you and your instructor and an opportunity for