You have $33,556.25 in a brokerage account, and you plan to deposit an additional$5,000 at the end of every future year until your account totals $220,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?

Your parents will retire in 19 years. They currently have $350,000 saved, and they think they will need$800,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don’t save any additional funds?

Answer the following question.

You have 33,556.25 dollars in a brokerage account, and you plan to deposit an additional 5,000 dollars at the end of every future year until your account totals 220,000 dollars. You expect to earn 12 percent annually on the account. How many years will it take to reach your goal?

You have $42,180.53 in a brokerage account, and you plan to deposit an additional$5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?

What is the present value of a security that will pay $29,000 in 20 years if securities of equal risk pay 5% annually?

If you deposit $2,000 in a bank account that pays 6% interest annually, how much will be in your account after 5 years?

An investment will pay $150 at the end of each of the next 3 years,$250 at the end of Year 4, $300 at the end of Year 5, and$500 at the end of Year 6. If other investments of equal risk earn 11% annually, what is its present value? Its future value?

Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $50,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 4%. He currently has$90,000 saved, and he expects to earn 8% annually on his savings. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal?

You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? What will be the loan’s EAR?

Sawyer Corporation’s 2015 sales were $5 million. Its 2010 sales were$2.5 million. a. At what rate have sales been growing? b. Suppose someone made this statement: “Sales doubled in 5 years. This represents a growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be 20% per year.” Is the statement correct?

To find the present value of an uneven series of cash flows, you must find the PVs of the individual cash flows and then sum them. Annuity procedures can never be of use, even when some of the cash flows constitute an annuity, because the entire series is not an annuity. True or false? Explain.

Pelzer Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have a 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond’s market price has fallen to$910.30. The capital gains yield last year was −8.97%. a. What is the yield to maturity? b. For the coming year, what are the expected current and capital gains yields? c. Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ?

Interest rates on 4-year Treasury securities are currently 6.7%, while 6-year Treasury securities yield 7.25%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average.

A 17-year, $\$1,000$ par value zero-coupon rate bond is to be issued to yield 7 percent. If immediately upon issue, interest rates increased to 9 percent, what would be the value of the zero-coupon rate bond?