You are about to graduate from college and have lined up a new job paying...
70.2K
Verified Solution
Link Copied!
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: Flex AI - Your personal assistant for all your inquiries!
