This topic contains a solution. Click here to go to the answer

Author Question: Your finance professor suggests that you should have 2,500,000 in your retirement portfolio before ... (Read 68 times)

hbsimmons88

  • Hero Member
  • *****
  • Posts: 526
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

frejo

  • Sr. Member
  • ****
  • Posts: 349
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

  • Member
  • Posts: 526
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


skipfourms123

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

For a complete list of videos, visit our video library