Reference no: EM133163904

Questions -

Q1. You just received $278,000 from an insurance settlement. You have decided to set this money aside and invest it for your retirement. Currently, your goal is to retire 38 years from today. How much more will you have in your account on the day you retire if you can earn an average return of 9.5% rather than just 9.0%?

Q2. When you retire 36 years from now, you want to have $2 million. You think you can earn an average of 11.5% on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 3 years from today. How much more will you have to deposit as a lump sum if you wait for 3 years before making the deposit?

Q3. You are scheduled to receive $15000 in two years. When you receive it, you will invest it for six more years at 7.1% per year. How much will you have in 8 years?

Q4. In 1970, the prize money of American Tournament was $15000. In 2015, prize money was $3776270. What was percentage increase in prize money over this period? If winner's prize continue to increase at same rate what will it be in 2040?

Q5. A particular investments generates the following cash flows: $5 Million end of year one; $5 Million end of year two; $5 Million end of year three; $7 Million end of year four; and $10 Million end of year five. What is the future value of this investment if the investor earns 9% per year on all funds invested?