Return on your investment

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Would you rather have $3,000 today or $5,000 in 5 years if your opportunity cost of capital is 10%?

How much do you have to invest today to have $15,000 in 3 years if you can get 9% return on your investment?

Would you pay someone $10,000 today in order to get $19,000 in 10 years if your opportunity cost of capital is 9%?

What is the effective annual interest rate of 7.25% compounded quarterly?

How much do you need in the bank when you retire if you would like to withdraw $200,000 each year for the 30 years that you are retired? You can get an 8% return on your investment.

If you invest $7,500 each year from now until you retire (for 40 years) how much will you have in 40years? Your return will be 8%.

Would you pay someone $25,000 today to get $5,000 each year for the next 7 years? You can get a return on your invested money of 10%.

What is your house payment if you buy a house for $250,000, put 20% down and finance the rest for 30 years at 3.95%?

What is your car payment if you buy a car for $27,000, put 10% down and finance the rest for 3 years at 6.25%?

If you leave the Animal Shelter $35,000 when you die, how much can they take out each year forever if they get a return of 7% on their investments?

Reference no: EM132070133

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