3. Bill is 60 years old and plans to retire at age 72. He currently has...
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3. Bill is 60 years old and plans to retire at age 72. He currently has $588,000 in his 401(k) account and expects to earn 8% annually on his account. Assuming he invests nothing more into the account, how long (in months) will it take for his account to be worth $1,000,000? How old will he be? Lump sum problems, solving for PV, n, i 4. You want to set aside some money today to buy a sailboat in 4 years. You expect to need $60,000 at that time. How much (a lump sum) would you have to invest today to accumulate that amount assuming you earn 5% on your funds, assuming quarterly compounding? 3. Bill is 60 years old and plans to retire at age 72. He currently has $588,000 in his 401(k) account and expects to earn 8% annually on his account. Assuming he invests nothing more into the account, how long (in months) will it take for his account to be worth $1,000,000? How old will he be? Lump sum problems, solving for PV, n, i 4. You want to set aside some money today to buy a sailboat in 4 years. You expect to need $60,000 at that time. How much (a lump sum) would you have to invest today to accumulate that amount assuming you earn 5% on your funds, assuming quarterly compounding?
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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