please answer all questions and Thank you !
1. Susan Wilson is a sales executive at a Baltimore firm. She is25 years old and plans to invest $3,800 every year in an IRAaccount, beginning at the end of this year until she reaches theage of 65. If the IRA investment will earn 8.45percent annually,how much will she have in 40 years, when she turns 65? (Roundanswer to 2 decimal places)
2. Donna Clark is a sales executive at a Baltimore firm. She is25 years old and plans to invest $2,500 each year in an IRA accountuntil she is 65 at which time she will retire (a total of 40payments). If Donna invests at the beginning of each year, and theIRA investment will earn 11.00 percent annually, how much will shehave when she retires? Assume that she makes the first paymenttoday.(Round answer to 2 decimal places)
3. Kevin Hall is saving for an Australian vacation in threeyears. He estimates that he will need $5,920 to cover his airfareand all other expenses for a week-long holiday in Australia. If hecan invest his money in an S&P 500 equity index fund that isexpected to earn an average annual return of 10.5 percent over thenext three years, how much will he have to save every year if hestarts saving at the end of this year?
4.Your grandfather is retiring at the end of next year. He wouldlike to ensure that his heirs receive payments of $9,600 a yearforever, starting when he retires. If he can earn 6.1 percentannually, how much does your grandfather need to invest to producethe desired cash flow? (Round answer to 2 decimal places)
5.Joseph Moore borrowed $15,550 from a bank for three years. Ifthe quoted rate (APR) is 8.90 percent, and the compounding isdaily, what is the effective annual interest rate (EAR)? (Roundanswer to 2 decimal places)
6.You are evaluating a growing perpetuity investment from alarge financial services firm. The investment promises an initialpayment of $24,700 at the end of this year and subsequent paymentsthat will grow at a rate of 2.6 percent annually. If you use a 9percent discount rate for investments like this, what is thepresent value of this growing perpetuity?(Round answer to 2 decimalplaces)
7.Cullumber Productions borrowed some money from the CaliforniaFinance Company at a rate of 13.90 percent for a seven-year period.The loan calls for a payment of $1,253,000 each year beginningtoday. How much did Cullumber borrow?(Round answer to 2 decimalplaces)
please answer all questions and Thank you !
1. Susan Wilson is a sales executive at a Baltimore firm. She is25 years old and plans to invest $3,800 every year in an IRAaccount, beginning at the end of this year until she reaches theage of 65. If the IRA investment will earn 8.45percent annually,how much will she have in 40 years, when she turns 65? (Roundanswer to 2 decimal places)
2. Donna Clark is a sales executive at a Baltimore firm. She is25 years old and plans to invest $2,500 each year in an IRA accountuntil she is 65 at which time she will retire (a total of 40payments). If Donna invests at the beginning of each year, and theIRA investment will earn 11.00 percent annually, how much will shehave when she retires? Assume that she makes the first paymenttoday.(Round answer to 2 decimal places)
3. Kevin Hall is saving for an Australian vacation in threeyears. He estimates that he will need $5,920 to cover his airfareand all other expenses for a week-long holiday in Australia. If hecan invest his money in an S&P 500 equity index fund that isexpected to earn an average annual return of 10.5 percent over thenext three years, how much will he have to save every year if hestarts saving at the end of this year?
4.Your grandfather is retiring at the end of next year. He wouldlike to ensure that his heirs receive payments of $9,600 a yearforever, starting when he retires. If he can earn 6.1 percentannually, how much does your grandfather need to invest to producethe desired cash flow? (Round answer to 2 decimal places)
5.Joseph Moore borrowed $15,550 from a bank for three years. Ifthe quoted rate (APR) is 8.90 percent, and the compounding isdaily, what is the effective annual interest rate (EAR)? (Roundanswer to 2 decimal places)
6.You are evaluating a growing perpetuity investment from alarge financial services firm. The investment promises an initialpayment of $24,700 at the end of this year and subsequent paymentsthat will grow at a rate of 2.6 percent annually. If you use a 9percent discount rate for investments like this, what is thepresent value of this growing perpetuity?(Round answer to 2 decimalplaces)
7.Cullumber Productions borrowed some money from the CaliforniaFinance Company at a rate of 13.90 percent for a seven-year period.The loan calls for a payment of $1,253,000 each year beginningtoday. How much did Cullumber borrow?(Round answer to 2 decimalplaces)
