Time Value of Money Assignment >> Personal & Family Financial Planning
TOTAL POINTS 6
1.Michael and Jessica decide to invest $2,000 in a portfolio of stocks for a time period of 5 years. They believe that the portfolio would give them a return on investment of 8%. What would be the total sum at the end of 5th year?
1 point
2.Earl Broker is 25 years old, senior in college and he decides to put $150 every year in a Roth IRA through Vanguard Total Stock Market ETF. It gives the return of 10%. Find the total sum he will receive when he will withdraw the money in his 65th birthday.
1 point
3.Betsy Parker wants to buy a house in next 10 years and decides to have a SMART goal of having $40,000 as down payment. With the investment that gives interest rate of 5%, how much money she needs to set aside now?
1 point
4.A portfolio manager came up with a lucrative offer for Debbie Smith that he will provide her with $15,000 per year for 20 years if she can invest certain amount upfront. Considering the return of the portfolio as 8 %, how much money Debbie needs to come up with?
1 point
5.Instead of investing a lump sum of $25,000, Brittany Royer decides to save the money in a vault for 2 years. Assuming the inflation being 2.5% per year, how much will her purchasing power decline in 2 years time?
1 point
6.A combination of stocks and bond portfolio offers Mike Spangler a rate of return of 8.5%. Considering the inflation rate of 3%, what is the actual (real) rate of return?
1 point
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