Albert has told you that one of his goals is to start his own business within three years. He has estimated that he will need $7,000 in five years to get his business off the ground. Based upon your research of historical, moderate investment returns you determine that Albert should casonably be able to obtain a return of 5.5% per year over this timeframe. 1. How much does Albert need to deposit today in order to achieve this goal? Interest compounds annually on this investment. 2. Based upon Albert's liquidity, does he have enough currently saved to achieve this goa ed upon your analysis, Albert wonders if it might be better to put money away each mont ards this goal instead of making such a lump sum payment. Using the same information:
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- 1. Your client Bob has sent you an email asking for help figuring out how long his money will last. Bob explains in his email that he wishes to spend $80,000 per year. He assumes his investment assets will grow at a 6% annual rate. You take a look at Bob's client profile and see that he is 60 years old and has $1,200,000 of investable assets. Solve on a financial calculatorStuart Daniels estimates that he will need $26,000 to set up a small business in 7 years. How much (in $) must Stuart invest now at 8% interest compounded quarterly to achieve his goal? How much compound interest (in $) will he earn on the investment?Use Table 11-2 to solve the problem. Stuart Daniels estimates that he will need $22,000 to set up a small business in 8 years. (a) How much (in $) must Stuart invest now at 8% interest compounded quarterly to achieve his goal? (b) How much compound interest (in $) will he earn on the investment?
- you are planning to start a business with an initial capital of P100,000. you decided to put up a fund with deposits made at the end of each month. if you want to gain the initial capital after 4 years, how much monthly deposit must be made? what should be the interest rate in order to achieve the possible amount needed? how are you going to invest your money that in short period of time so that you can start your business smoothly?How do I work this problem in excel? You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you?7. You plan to save every year and accumulate $150,000 in 6 years to make the down payment for your house. To achieve your financial goal, you plan to make a deposit of $20,000 per year into a bank account paying 6% annual interest. The first deposit will be made a year from today. a. Draw a timeline to visualize the problem. b. Can you achieve your financial goal? (Show your work to answer this question) c. If not, what is the minimum deposit you need to make per year in order to achive your goal? 8. You are pursuing a Bachelor's in Finance at a business school, and you will need $20,000 per year for the next 4 years to cover your college expenses. That is, you plan to withdraw $20,000 at the end each of the next 4 years, starting one year from today. To support your college education, your parents decide to make a deposit today into a bank account paying an 8% annual interest. This deposit should be sufficient to cover the four $20,000 withdrawals you will make over the next 4 years.…
- There is an investor stating they will pay out $84,000 at the end of 4 years. In order to invest into the opportunity, you'll need to make a deposit of $10,000 to thier indicated bank account. What is the average annaul return rateYour cousin Vance tells you that you can invest $15,000 in his business, and he will pay you back $25,000 in 2 years' time. What is the return on this investment?You have just made your first $5,500 contribution to your retirement account. Assuming you earn a return of 10 percent per year and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?) Input area: Present value Interest rate Number of years Number of years (Use cells A6 to 89 from the given information to complete this question. Your answer should be a positive value.) Output area: $5,500 10% 45 35 Future value Future value $
- You invest $2000 today at 7% per year. If you leave thisfor your grandchildren by not touching the account for80 years, what is the amount of interest on interestearned for this investment? Please explain how to do this problem in the financial calculator. The most important thing is that I understand how to solve the problem on my ownUse Excel to solve the following problem. Assume that you are 39 years old planning for your future retirement at age 65. You think that you will be comfortable living on the proceeds from a $1,000,000 401K Retirement Account.a. If your investments grow at an average rate of 6% annually how much must you invest monthly to achieve your projected retirement fund total by the time you retire in 26 years?b. Assuming that when you do retire, you will re-direct your $1,000,000 investment portfolio into less volatile and more secure mutual funds. You expect that, invested in these sources, your portfolio will securely earn 4.5% annually. Based on your assumptions and the normal life expectancy of an American male or female (I determined this to be 81 years old), without consuming any of your principal, how much money will you have on a monthly basis to support your life?(I have worked this problem out on my own, I just want to be sure I applied the formulas and concepts correctly.)You are trying to decide how much to save for retirement. Assume you plan to save $4,500 per year with the first investment made one year from now. You think you can earn 6.0% per year on your investments and you plan to retire in 45 years, immediately after making your last $4,500 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 16 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 16th withdrawal (assume your savings will continue to earn 6.0% in retirement)? d. If, instead, you decide to withdraw $191,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…