Homework Help is Here – Start Your Trial Now!
Business
Finance
8. If he sticks to this plan, Ito's savings will have grown to approximately. A) $116,723 B) $163,987 C) $9,646 D) $1,125,945 by age 62. 9. If Ito were to leave his money in the account until he was 68, by approximately what amount would the balance increase between his 62nd and 68th years? A) $113,667 B) $1,096,471 C) $160,457 D) $1,973 10. If his savings account had earned a more conservative 9% annual rate of return, Ito's savings would be approximately less by age 68. A) $4,132 B) $62,585 C) $167,805 D) $1,871,663

8. If he sticks to this plan, Ito's savings will have grown to approximately. A) $116,723 B) $163,987 C) $9,646 D) $1,125,945 by age 62. 9. If Ito were to leave his money in the account until he was 68, by approximately what amount would the balance increase between his 62nd and 68th years? A) $113,667 B) $1,096,471 C) $160,457 D) $1,973 10. If his savings account had earned a more conservative 9% annual rate of return, Ito's savings would be approximately less by age 68. A) $4,132 B) $62,585 C) $167,805 D) $1,871,663

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
100%

Answer 8-10

For nos. 7 to 10 Ito Rapadas Ito learned something very valuable as a teenager from his dad. He was told to invest $1,000 at 12% interest at age 20 and leave it alone until age 65. Ito's dad knew that one strategy that wealthy people use is to exercise self-discipline to never touch this long-term plan. Ito is very happy he applied his dad's advice. 7. Approximately how long will it take Ito's savings to grow into $2,000? A) 60 months B) 5 years C) 8.5 years D) 6 years 8. If he sticks to this plan, Ito's savings will have grown to approximately A) $116,723 B) $163,987 C) $9,646 D) $1,125,945 9. If Ito were to leave his money in the account until he was 68, by approximately what amount would the balance increase between his 62nd and 68th years? A) $113,667 B) $1,096,471 C) $160,457 D) $1,973 by age 62. 10. If his savings account had earned a more conservative 9% annual rate of return, Ito's savings would be approximately less by age 68. A) $4,132 B) $62,585 C) $167,805 D) $1,871,663
Transcribed Image Text:For nos. 7 to 10 Ito Rapadas Ito learned something very valuable as a teenager from his dad. He was told to invest $1,000 at 12% interest at age 20 and leave it alone until age 65. Ito's dad knew that one strategy that wealthy people use is to exercise self-discipline to never touch this long-term plan. Ito is very happy he applied his dad's advice. 7. Approximately how long will it take Ito's savings to grow into $2,000? A) 60 months B) 5 years C) 8.5 years D) 6 years 8. If he sticks to this plan, Ito's savings will have grown to approximately A) $116,723 B) $163,987 C) $9,646 D) $1,125,945 9. If Ito were to leave his money in the account until he was 68, by approximately what amount would the balance increase between his 62nd and 68th years? A) $113,667 B) $1,096,471 C) $160,457 D) $1,973 by age 62. 10. If his savings account had earned a more conservative 9% annual rate of return, Ito's savings would be approximately less by age 68. A) $4,132 B) $62,585 C) $167,805 D) $1,871,663
Expert Solution
steps

Step by step

Solved in 4 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Money Management and Achieving Financial Goals
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS