Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you are about to graduate from college and have li

You are about to graduate from college and have lined up a new job paying...

70.2K

Verified Solution

Question

Finance

You are about to graduate from college and have lined up a new job paying $45,000 per year. While you expect to do better in the future, you still managed to put aside $1,000 last year and will save $1,200 ($100/month) starting next year. At a minimum, you intend to increase this by 5% per year for the next twenty years and believe you can earn an 8% return. What is the present value of your intended savings?

1)

$15,230

2)

$17,230

3)

$19,230

4)

$21,230

What is the future value of those payments using the assumptions above?

1)

$80,306

2)

$81,306

3)

$82,306

4)

$83,306

Using the Rule of 72 you put away $2,000 into a CD paying 3% per annum. Assuming you can keep rolling it over at the same rate how many years until your money doubles?

1)

72 years

2)

24 years

3)

3 years

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Two water reservoirs are joined by a sharp ended flexible pipe 100 mm in diameter and...

Mechanical Engineering
Q

Why is it hard to measure the phenomenon experienced at the speed of light?

Physics
Q

Strategy(China’s Didi Chuxing Offers Ride-Hailing Service in Mexico) write a one page research essay on this...

General Management
Q

Hackers can steal information from companies They use technology to do this But people keep...

Biology
Q

6 Read the following passage and answer the questions given below In fluid mechanics Pascal...

Physics
Q

If photon energy is near about 3 5 eV then it causes the sunburn i...

Physics
Q

A hospital has been tracking the number of incidents of heart disease it treats each...

Basic Math
Q

Exercise 6-23 (Algo) Income (loss) recognition; Long-term contract; revenue recognition over time vs....

Accounting
Q

Jonny signs a lease to exhibit art at a hall for 4 weeks. The hall...

Accounting
Q

Discuss the Accounting record/ bookkeeping among small and medium enterprise (SME) in Malaysia.

Accounting
Q

7. Future value of annuities There are two categories of cash flows: single cash flows,...

Finance
Q

You have been researching portfolios and have found an opportunity for an arbitrage profit with...

Finance