What rate of return on my investments

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Q1. Meg Prior is 25 years old and is going to invest $10,000 in her retirement fund at the beginning of each of the next 40 years. Assume that during each of the next 30 years Meg will earn 15 percent on her investments and during the last 10 years before she retires, her investments will earn 5 percent. Determine the IRR associated with her investments and her final retirement position.

Q2. I deposit $2,000 per month (at the end of each month) over the next 10 years. My investments earn 0.8 percent per month. I would like to have $1 million in 10 years. How much money should I deposit now?

Q3. You have a liability of $1,000,000 due in 10 years. The cost of capital is 10 percent per year. What amount of money do you need to set aside at the end of each of the next 10 years to meet this liability?

 Q4. At the end of each of the next 40 years, I'm going to put $20,000 in my retirement fund. What rate of return on my investments do I need so that I will have $2 million available for retirement in 40 years?

Reference no: EM133101116

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