Your finance professor suggests that you should have 2,500,000 in ...

[hbsimmons88]

Your finance professor suggests that you should have 2,500,000 in your retirement portfolio before you even THINK about retiring. Recently, your uncle sold valuable California real estate and handed you a check for 300,000.
 
  This is the amount you have after paying taxes. He is now your favorite uncle.) How much of the 300,000 must you set aside today if you invest a portion of the money at an annual rate of 8.0 and you wish to retire in 35 years with the amount suggested by your finance professor?
  A) 169,086
  B) 14,508
  C) 130,914
  D) At an annual rate of return of 8.0, 300,000 is not a large enough investment to reach the goal amount of 2,500,000 in 35 years.

Question 2

The survey results from the National Association of Colleges and Employers (NACE) show the average annual increases in salaries for new accounting graduates to be 3.42 since the year 2000.
 
  If new starting salaries in accounting were 36,919 in 2000, what were they in 2011?
  A) 45,757
  B) 46,718
  C) 53,444
  D) 42,617

[frejo]

Answer to Question 1

Answer: A
Explanation: A) PV = = = 169,086.36
MODE = END
INPUT 35 8 ? 0 -2,500,000
KEY N I/Y PV PMT FV
CPT 169,086.36

Answer to Question 2

Answer: C
Explanation: C) FV = PV  (1 + r)n = 36,919  (1.0342)11 = 53,444.10
MODE = END
INPUT 11 3.42 -36,919 0 ?
KEY N I/Y PV PMT FV
CPT 53,444.10

[hbsimmons88]

TYSM

[deja]

Excellent