Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires

Question:

Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today).
a. How much of a deposit would she have to make if the interest rate on the C.D. was 5%?
b. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.
c. What would Mrs. Beach have to deposit if she were to use and earned an average rate of return of 11%.
d. What type of a problem is this? _
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...