You wish to have $1,000,000. You will invest $600 per month, earning 8% per year. How many

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You wish to have $1,000,000. You will invest $600 per month, earning 8% per year. How many months until you reach $1 million in total value?

Group of answer choices

375

358

No solution

180

Flag question: Question 12Question 121 pts

You have a home loan of $150,000. The interest rate is 5.5% and the loan is for 30 years, with monthly payments. If you make a one time extra principle payment of $22,000 in period number 18, how much do you save in total interest paid of the life of the loan?

Group of answer choices

$22,000

$48,814

$35,712

$61,492

Flag question: Question 13Question 131 pts

In order to calculate the amount of money needed to maintain a standard of living 20 years from now, you attempt to calculate an FV (20 years from now) of today's living expenses. What would be most appropriate for you to use as the interest rate?

Group of answer choices

Expected inflation rate

Average market rates of return

Average market return + inflation

Money market rate

Flag question: Question 14Question 141 pts

What is the present value (PV) of a series of payments of $6,000 per year for 12 years, discounted at a rate of 7% (annual)?

Group of answer choices

$47,656.12

$107,330.71

$72,000.00

$14,000.00

Flag question: Question 15Question 151 pts

You want to have $1 million 30 years from now. Assuming a 10% rate of return, how much do you have to invest today in a single lump sum in order to have the $1 million?

Group of answer choices

$6,082

$32,405

$57,309

$85,298

Flag question: Question 16Question 161 pts

How much must you invest per month in order to have $1,000,000 20 years from now? Assume a 9.5% annual rate of interest with monthly compounding.

Group of answer choices

$1,405

$527

$29,294

$150,692

Flag question: Question 17Question 171 pts

Linda would like to have a retirement account with $3,000,000 in it on the day she retires 40 years from now. She is going to target a rate of return of 11.0% on her investments. How much does she need to invest each month, in order to reach her goal of $3,000,000 in 40 years?

Group of answer choices

$348.83

$62,427.83

$961.28

$527.88

Flag question: Question 18Question 181 pts

You want to have the equivalent of $700,000 (in terms of today's spending power) when you retire in 30 years. Assume a 3% rate of annual inflation. If you can earn 10% annually, how much do you have to invest per year in order to have your full amount of money needed at retirement?

Group of answer choices

$21,230

$85,651

$7,856

$10,329

Flag question: Question 19Question 191 pts

You wish to buy a cabin in 15 years. today, the cabin costs $150,000. You believe the price of the cabin will inflate at 4% annually. You want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. If you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?

Group of answer choices

$8,500

$31,337

$64,670

$89,520

Flag question: Question 20Question 201 pts

Kevin is planning to invest $600.00 per month. His goal is to have $1,500,000. He will earn 11.0% on his investments. How many months will it take to reach his goal?

Group of answer choices

347.90 months

360.00 months

224.70 months

401.30 months