I need help with requirements 4 and 5. Attached are also the related screenshots
ID: 2535180 • Letter: I
Question
I need help with requirements 4 and 5. Attached are also the related screenshots
More Info 1. Charlie just hit the jackpot in Las Vegas and won $30,000! If he invests it now, at a 14% 2. Roderick would like to have $3,000,000 saved by the time he retires in 40 years. How much 3. Assume that Penny accumulates savings of $2 million by the time she retires. If she invests interest rate, how much will it be worth fifteen vears from now? does he need to invest now at a 10% interest rate to fund his retirement goal? this savings at 12%, how much money will she be able to withdraw at the end of each year 4. Hannah plans to invest $3,000 at the end of each year for the next eight years. Assuming a 5. Assuming a 6% interest rate, how much would Rachel have to invest now to be able to 6. Darren is considering a capital investment that costs $500,000 and will provide the following for fifteen years? 14% interest rate, what will her investment be worth eight years from now? withdraw $12,000 at the end of every year for the next nine years? net cash inflows Year Net Cash Inflow $308,000 $205,000 $102,000 Using a hurdle rate of 12%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? Print DoneExplanation / Answer
In Question No 4, Question states that " Hannah plans to invest $3000 at the end of every year for next 8 Years. Assuming 14% ,what will be investment woth after 8 years from now?"
Assuming 14% interest rate "PER ANNUM", future annuity value of 14% will be (1.14)8 or 2.853.
Hence Investment worth after 8 Years = 2.853* $3000 = $8559
(1.14)8 can be calculated through calculator.
Qus 5) In Q No 5, 6 % interest rate is assumed as PER ANNUM. If 12000 is to be withdrawn at the end of each year
PV Annuity Factor of 6% interst rate = (1/1.06)^9 or 6.802*
Amount to be invested now = 12000 X 6.802 = 81624
* It can be calculated on Claculator like this :
(1/1.06)^9 and press GT for the same on calculator