A recent UCF graduate just accepted a job offer that promises her the following bonuses at the end of each of the following years: Year 2: $4,000, Year 4: $6,000, Year 6: $10,000, and Year 8: $12,000. Instead of spending the money, she decides to invest the funds in an account earning 8% annually. How much will she have at the end of year 12? O $62,106 O $53,202

A recent UCF graduate just accepted a job offer that promises her the following bonuses at the end of each of the following years: Year 2: $4,000, Year 4: $6,000, Year 6: $10,000, and Year 8: $12,000. Instead of spending the money, she decides to invest the funds in an account earning 8% annually. How much will she have at the end of year 12? O $62,106 O $53,202

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A young student 22 years old has just graduated from college. She accepts a good job and desires to establish her own retirement fund. At the end of each year thereafter she plans to deposit P2,000 in a fund at 15% annual interest. How old will she be when the fund has an accumulated value of P1,000,000?
A young woman 22 years old has just graduated from college. She accepts a good job and desire to establish her own retirement fund. At the beginning of each year thereafter she plans to deposit P 2,000 in a fund at 15% annual interest. How old will she be when the fund has an accumulated value of P 1,000,000. 52 53 31 30
You are doing a special project for the boss and he is going to give you a $5,000 bonus when it is completed in 3 years. In the meantime, you and your partner are having a baby this year. You intend to put your bonus into a 6% investment and let it accumulate until the baby is 18 years old when you will withdraw the total amount for college expenses. How much will the fund be at the end of 18 years? O $11,983 O $116,380 O $154,503 O $179,742
Gilles Lebouder has just been offered a job paying $50,000 at the end of his first year. He expects his annual salary will increase by 5% a year until he retires in 40 years. Given an interest rate of 8%, what is the present value of his lifetime salary? Select one. • a. $ 975, 319 b. $1, 126, 571 0 c. $1,371, 643 d. $1,392, 072 0 e. $1, 666, 667 ●
A.)Your client has recently had a baby girl. He wants to set aside his annual bonus at the end of each year to pay her college costs in 18 years. He expects his bonus to be $5,000 per year and thinks he can earn 6% per year. How much will he have saved at the end of 18 years? B.) How much will he have saved at the end of 18 years if his bonus is received at the beginning of each year?
Answer the problem with complete solution. Don't use excel please. A young woman, 22 years old, has just graduated from college. She accepts a good job and desires to establish her own retirement fund. At the end of each month thereafter she plans to deposit P1200 in a fund at an interest of 15% compounded quarterly. How much will be accumulated when she reaches 60 years old?
Your uncle has a job that paid him the following year-end cash bonuses shown in the table below. Since he was a finance major in college, he invested all the bonuses he received in a stock mutual fund that earns 10% per year. How much would he have in his mutual fund account at the end of 2030? Year 2019 2020 2021 2022 O $29,825 O $102,962 O $70.325 O $32,807 O $93,602 Bonus $6,000 $ 8,000 $10,000 $15,000
What does Shelley need to save monthly to make sure she is on track to reach her retirement goal of having $440,000 saved by the time she reaches age 65? She is 48 years old, has been contributing $400 per month and has $180, 000 in her RRSP. Assume she will make an annual return of seven percent. Select one: a. $1275 b. $336 c. $681 d. $1133
vnt.2 Debbie is 22. She wants to invest part of her monthly salary in order to have $760,000 when she retires at 66. Suppose that she invests the money in a fund paying interest at an annual rate of 5.4%, compounded continuously. Assume a continuous money flow, then Debbie needs to invest $ _______ per month. (Round the answer to an integer at the last step.)
Congratulations - you have secured your first job after graduating from Isenberg. Your employer is offering to pay out your signing bonus in one of two formats.The first option is the amount of $4400 in 6 years. The second option is to receive the amount of $1900 immediately followed by some unknown annuity that is paid at the end of each year for 6 years with the first annuity payment received at the end of year 1. Using an interest rate of 6.50%, determine the unknown annuity amount for the second option that would make the present value of both options equivalent.
Barbara Cartland is scheduled to receive $20,000 in two years. When she receives it, she will invest it for 5 more years, at 8 percent per year. How much money will she have 7 years from now? $44,079.84 $58,773.12 $47,209.19 $36,733.2 $29,386.56
Ms. Lun is earning P20,000 per month. She plans to invest in an insurance company an amount equivalent to 10% for his earnings. The insurance company offers 10% percent on his annual contributions at the end of each year, how much will she have at the end of the tenth year? a. 12,290 b. 20,000 c. 31,874 d. 382,498

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