Solve the followings

1. Jack has $8,500 invested in a Vanguard Index Fund that is expected to generate an average annual return of 5%. How long will it take Jack to double his money?

2.How much will you have in 8 years if you deposit 57,500 per year at the end of the year into an account that pays 6% per year?

3. How much would you have in the above example if you made the deposits at the beginning of the year instead of the end (ie starting today)?

4. Suppose you borrow 5250,000 today which has to be paid off in 30 equal end of year instaliments. The interest rate on the loan is 5%. How much is the annual payment

5. You deposit 520,000 into an account that carries an annual interest rate of 2.5 N - but interest is paid semi-annually. How much would you have in 5 years?

Answer rating: 100% (QA)

1 To calculate how long it will take Jack to double his money we can use the rule of 72 The rule of 72 states that you divide 72 by the annual growth rate to approximate the number of years it takes f... View the full answer