Please provide the answer for all You want to have $6 million in real dollars in an account when you retire in 40 years. Thenominal return on your investment is 14 percent and the inflation rate is 4.5percent. What real amount must you deposit each year to achieve your goal? (Do notround intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)Deposit amount Treasury bills are currently paying 6 percent and the inflation rate is 3 percent.a. What is the approximate real rate of interest? (Enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)b. What is the exact real rate? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)a. Approximate real rateb. Exact real rate%%

Real rate of interest refers to the percentage which reflects the real return to the investors and…

= You want to have $6 million in real dollars in an account when you retire in 40 years. T nominal return on your investment is 14 percent and the inflation rate is percent. What real amount must you deposit each year to achieve your goal? (Do r round intermediate calculations and round your answer to 2 decimal places, e. 32.16.) Deposit amount

= You want to have $6 million in real dollars in an account when you retire in 40 years. T nominal return on your investment is 14 percent and the inflation rate is percent. What real amount must you deposit each year to achieve your goal? (Do r round intermediate calculations and round your answer to 2 decimal places, e. 32.16.) Deposit amount

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 7CE

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
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You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
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