Ch.3 Practice

Ch.3 Practice - 3. You expect to receive $30,000 at...

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FIN 3100 Chapter 3 Practice Dr. Lucy Ackert 1. In 2006 a 50-cent piece issued in 1904 sold for $1,300. What was the return on this investment? 2. You have just made your first $5,000 contribution to your IRA. If you can earn 11% and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing to the account? What does this suggest to you?
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Unformatted text preview: 3. You expect to receive $30,000 at graduation in two years and plan on investing it at 9% until you have $160,000. How long will you have to wait from today? 4. An investment offers to triple your money in 24 months. What rate per three months are you being offered? 5. You need $75,000 in 10 years. If you can earn .55 percent per month, how much will you have to deposit today?...
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