How much does camila need to place in a saving account

Reference no: EM131922991

Question: 1. Camila plans to go for vacation to Australia in 10 years from now. She estimates that she will need $28,870 for the trip. How much does she need to place in a saving account today that earns 8.87 percent per year (compounded quarterly) to accumulate this amount?

2. You are given an investment to analyze. The cash flows from this investment are

End of year
1. $2,560
2. $2,850
3. $13,140
4. $24,170
5. $8,900

What is the present value of this investment if 5 percent per year is the appropriate discount rate?

3. Assume that the inflation rate during the last year was 1.94 percent. US long-term bonds had the nominal rates of return of 5.57 percent. What is the real rate of return for a US long-term bond?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

4. You plan to buy a house in 9 years. You want to save money for a down payment on the new house. You are able to place $114 every month at the end of the month into a savings account at an annual rate of 12.89 percent, compounded monthly. How much money will be in the account after you made the last payment?

5. You currently have $58.1 in your savings account at an annual rate of 6 percent. How many years will it take for this investment to grow to a value of $447.1?

Round the answer to two decimal places.

6. You have accumulated some money for your retirement. You are going to withdraw $83,102 every year at the beginning of the year for the next 19 years starting from today. How much money have you accumulated for your retirement? Your account pays you 11.67 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.

Round the answer to two decimal places.

Reference no: EM131922991

Questions Cloud

Determine the volume of the container : If the initial volume of the container, before any reaction takes place, is 2.00 L, determine the volume of the container after the SO2 (g) and O2 (g)

What is the expected spot rate : What is your expected spot rate of the Swiss franc in one year with respect to the United States dollar? (Show Work)

Calculate the equilibrium molarity of so4-2 : Suppose a 0.040M aqueous solution of sulfuric acid (H2SO4) is prepared. Calculate the equilibrium molarity of SO4-2.

Find change in the bond price in dollars : A $2,500 face value corporate bond with a 6.4 percent coupon (paid semiannually) has 10 years left to maturity. It has had a credit rating of BBB.

How much does camila need to place in a saving account : Camila plans to go for vacation to Australia in 10 years from now. She estimates that she will need $28,870 for the trip. How much does she need to place.

Reactions below to produce bis-acetylene : Consider the chemical reactions below to produce bis-acetylene (C4H2) from ruthenium (Ru) and acetylene (C2H2).

Decomposition of dinitrogen tetroxide : The rate law for the decomposition of dinitrogen tetroxide (N2O4) is -d[N2O4]/dt = k [N2O4]

Structure of penthouse ethanoate : Conpare the structure of oil of banana to the structure of penthouse ethanoate and explain why the smells of these two eaters might be similar.

Prepare and print a one-page cost estimate for the project : Prepare and print a one-page cost estimate for the project. Use the WBS categories you created earlier, and be sure to document assumptions.

User Account

All Pages