What would mrs beach have to deposit

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Mrs. Beach wants to invest a lump sum of money today to have $250,000 when she retires at 65 (she is 40 today).

Question a. How much of a deposit would she have to make if the interest rate on the C.D. was 5%?

Question b. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.

Question c. What would Mrs. Beach have to deposit if she were to use common stock and earned an average rate of return of 11%.

Question d. What type of a problem is this?

Reference no: EM132544143

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