Allison and Leslie, who are twins, just received$15,000 each for their 29th birthday. Theyboth have aspirations to become millionaires.Eachplans to make a $5,000 annual contributionto her "early retivement fund" on her birthday,begiming a year from today. Allison opened anaccount with the Jafety First Bund Fund, a mutualfund that invests in high-quality bonds whoseinvestors have earned 8% per year in the past.Leslie invested in the New Issue Bio- Tech Fund,which invests in small, newly issued bio tech stucksand whose investors have earned an average of 17%per year in the find's relatively short history.u) If the two women's funds eam the same returnsin the future as in the past, how old will each bewhen she becomes a millionaire? Round your answersto two decimal places.yearsAllisonLeslie.yearsb) How large would Allison's annual contributions haveto be for her to become a millionaire at thesame age as Leslie, assuming their expected returnsare realized? Round your answer to the nearest cent.

Here, AllisonLeslieCurrent Amount received $ 15,000.00 $ 15,000.00Current Age2929Annual…

Allison and Leslie, who are twins, just received $15,000 each for their 29th birthday, They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retivement fund" on her birthday, begining a year from today. Allison opened an account with the Jafety First Bund Fund, a mutual find that invests in high-quality bonds whose investors have earned 8% per year in the past, Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio tech stocks and whose investors have earned an average of 17% por year in the find's relatively short history. mani 4) If the two women's funds eam the same returns in the future as in the past, how old will each be when she becomes a millionaire? Round your answers to two decimal places. Gears Allison Leslie. years b) How large would Allison's annual contributions have to be for her to become a millionaire at the same age as leslie, assuming their expected returns are realized: Round your answer to the nearest cent.

Allison and Leslie, who are twins, just received $15,000 each for their 29th birthday, They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retivement fund" on her birthday, begining a year from today. Allison opened an account with the Jafety First Bund Fund, a mutual find that invests in high-quality bonds whose investors have earned 8% per year in the past, Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio tech stocks and whose investors have earned an average of 17% por year in the find's relatively short history. mani 4) If the two women's funds eam the same returns in the future as in the past, how old will each be when she becomes a millionaire? Round your answers to two decimal places. Gears Allison Leslie. years b) How large would Allison's annual contributions have to be for her to become a millionaire at the same age as leslie, assuming their expected returns are realized: Round your answer to the nearest cent.

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

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Allison and Leslie, who are twins, just received $20,000 each for their 24th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 8% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 19% per year in the fund's relatively short history. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not round intermediate calculations. Round your answers to two decimal places. Allison: years Leslie: years How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Leslie,…
Erika and Kitty, who are twins, just received $30,000 each for their 20th birthday. Theyboth have aspirations to become millionaires. Each plans to make a $5,000 annualcontribution to her “early retirement fund” on her birthday, beginning a year from today.Erika opened an account with the Safety First Bond Fund, a mutual fund that invests inhigh-quality bonds whose investors have earned 7% per year in the past. Kitty investedin the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks andwhose investors have earned an average of 20% per year in the fund’s relatively shorthistory.a. If the two women’s funds earn the same returns in the future as in the past,how old will each be when she becomes a millionaire?b. How large would Erika’s annual contributions have to be for her to becomemillionaire at the same age as Kitty, assuming their expected returns arerealized?c. Is it rational or irrational for Erika to invest in the bond fund rather than instocks?
Allison and Leslie, who are twins, just received $35,000 each for their 26th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 8% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 14% per year in the fund's relatively short history. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not round intermediate calculations. Round your answers to two decimal places.Allison: yearsLeslie: years How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming…
Allison and Leslie, who are twins, just received $30,000 each for their 21th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 6% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 17% per year in the fund's relatively short history. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not round intermediate calculations. Round your answers to two decimal places. How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming their expected returns are realized?…
Allison and Leslie, who are twins, just received $20,000 each for their 27th birthdays. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 7% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 17% per year in the fund's relatively short history. A. If Allison's fund earns the same returns in the future as in the past, how old will she be when she becomes a millionaire? Do not round intermediate calculations. Round your answer to two decimal places. B. If Leslie's fund earns the same returns in the future as in the past, how old will she be when she becomes a millionaire? Do not round intermediate calculations.…
Erika and Kitty, who are twins, have just received $30,000 each for their 25th Each sister plans to make a $5,000 annual contribution to her retirement fund on her birthday, beginning a year from today. Erika opened an account with a fund that provides a 6% return per year. Kitty invested in fund that provides a 20% return per year. How old will each sister be when she becomes a millionaire? How large should Erika’s annual contributions have to be for her to become a millionaire at the same age as Kitty?
Allison and Leslle, who are twins, just received $35,000 each for their 22th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 7% per year in the past. Leslie invested in the New Issue Blo-Tech Fund, which Invests in small, newly Issued bio-tech stocks and whose investors have earned an average of 14% per year in the fund's relatively short history. a. If the two women's funds earn the same returns the future as in the past, how old will each be when she becomes millionaire? Do not round Intermediate calculations. Round your answers to two decimal places. Allison: years Leslie: b. How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Lesile, assuming their expected…
Sarah and Mae, who are twins, just received P30,000 each for their 25th birthday. They both have aspirations to become millionaires. Each plan to make a P5,000 annual contribution to her “early retirement fund” on her birthday, beginning a year from today. Sarah opened an account with the First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 6% per year in the past. Mae invested in the New Issue Bio-Tech Fund, which invests in small, newly issued biotech stocks and whose investors have earned an average of 20% per year in the fund’s relatively short history. Post your Excel file here to answer the questions below: a. Draw a timeline of the cash flows. b. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? c. How large would Sarah’s annual contributions have to be for her to become a millionaire at the same age as Mae, assuming their expected returns are realized?
Stephanie inherited $40,000. She wants to put some of the money in a certificate of deposit that pays 2.1% interest per year and the rest in a mutual fund account that pays 6.5% per year. How much should she invest in each account if she wants to earn 5.4% interest per year on the total amount?
Ji Hyun's generous grandfather invests $1,000 when she is born into an index fund that produces a 7% return compounded annually. He plans to give the money in the account to her on her 18th birthday to help her pay for her college expenses. How much money will be in the account at the end of 18 years? Click here to access the TVM Factor Table calculator. $
Carl is the beneficiary of a $28,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive the money over a 4-year period in equal installments at the end of each year. If the fund earns interest at the rate of 4%/year compounded annually, what amount will he receive each year? (Round your answer to the nearest cent.)
1) Rania's grandfather started a college fund for her on the day she was born. The funds were placed in "Trust" to be invested at a rate of 5.5% until her 21* birthday. Rania just turned twenty-one and has received notification that the fund is now worth $492,517.45. How much was her grandfather's initial investment?

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