Cameron has $26,000 in a retirement account. He has calculated that when he retires in 32 years, the account should have $700,000. What rate does Cameron need to earn in this account?

 

2) A PV of $25,000 is expected to grow to equal a FV of $1,500,000, 34 years from now. With monthly compounding, what annual rate of return is required to make this happen?

 

3) A PV of $15,000 is expected to grow to equal a FV of $80,000, 20 years from now. With monthly compounding, what annual rate of return is required to make this happen?

 

4) A PV of $600 is expected to grow to equal a FV of $1,500, 12 years from now. What rate of return is required to make this happen?

 

5) Tom has $50,000 in a retirement account. He has calculated that when he retires in 31 years, the account should have $1,000,000. If this account compounds interest every quarter, what rate does Tom have to earn in this account?

 

6) George has a valuable painting that he believes will be worth $70,000, 16 years from now. He was just offered $15,000 if he sells the painting today. What rate would George need for his painting to grow its worth to $70,000 by the end of the 16 years?

 

7) Allie has $3,750 in a retirement account. She has calculated that when she retires in 29 years, the account should have $100,000. If this account compounds interest every month, what rate does Allie have to earn in this account?

 

8) A PV of $16,000 is expected to grow to equal a FV of $70,000, 18 years from now. With quarterly compounding, what annual rate of return is required to make this happen?

 

9) A PV of $950 is expected to grow to equal a FV of $3,000, 15 years from now. What rate of return is required to make this happen?

 

10) Daniel wants to have $750,000, 25 years from now. He has invested $40,000 that he got from an inheritance. What rate of return does his investment need to earn in order for him to have the $750,000, 25 years in the future?

Answer rating: 100% (QA)

1 Cameron needs to earn a rate of approximately 617 to grow his retirement account from 26000 to 700000 over 32 years This can be calculated using the ... View the full answer