Reference no: EM132836726

Questions -

Q1. You are planning to save for retirement over the next 15 years. You will invest $1,100 a month in a stock account and $500 a month in a bond account. The return on the stock account is expected to be 9 percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a 5 percent return. How much can you withdraw each month during retirement assuming a 20-year withdrawal period?

Q2. On your ninth birthday, you received $300 which you invested at 4.5 percent interest, compounded annually. Your investment is now worth $756. At 8 percent interest, how many years would it take to quadruple your money? At 8 percent interest, how many years would it take to quadruple your money?

Q3. Today, you borrowed $6,200 on your credit card to purchase some furniture. The interest rate is 16.9 percent. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $120?

Q4. You have been investing $325 a month for the last 8 years. Today, your investment account is worth $43,262. What is annual rate of return?

Q5. You make $10,000 deposit 1 year from now, $15,000 deposit 3 years from now and $20,000 deposit 5 years from now. You plan to retire 30 years from now. What monthly income you will receive due to these deposits over five years after the retirement? The first payment would be received at the end of the first month after the retirement and the last payment on the month ending the fifth year. The rate of return is 5.14%.

Q6. Roadside Markets has a 6.75 percent coupon bond outstanding that matures in 10.5 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 8.2 percent?