+1-415-670-9189
info@expertsmind.com
Disadvantages of investing in stock market long term
Course:- Business Management
Reference No.:- EM1319989




Assignment Help
Assignment Help >> Business Management

1. Two people, Ella and Jane, decide to start saving for retirement. Ella decides to invest $4000 a year into an annuity at the age of 25. At the age of 35 she stops making investments and just leaves the money there. Jane on the other hand, decides to start investing $4000 a year at the age of 40 and invests that money for every year thereafter. Assuming both retire at 70, and that the interest rate both get on their investments is 10% (compounded annually) who has the most money in their account at age 70? Explain why you pick the answer you pick. 

2. At the age of 30 you decide to start saving money. At first you can only afford to deposit $200 per month. However, at the age of 38 you are able to deposit $300 per month. Then at the age of 45 you raise your monthly deposit again to $500 per month. Finally at the age of 50 you get promoted to president of the company and are able to deposit $2000 per month into the account. Assuming your account is earning (prime interest rate + 4%) in interest, compounded monthly, how much do you have in your account at the age of 70? Hint: Treat each time that you change the deposit amount as a separate annuity, and compute the future value (FV) on each annuity separately. Assume that each annuity earns compound interest during the time it is not receiving deposits. 

3. It is commonly assumed that the stock market yields a 10% rate or return (on average) on investments made in the market long term. Write an essay looking at the advantages and disadvantages of investing in the stock market long term.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Management) Materials
This was a major hit on the economy and increased electricity prices." Do you agree with this assessment of the carbon tax policy? Provide at least two reasons why this crit
The Equal Employment Opportunity Commission's stated mission is to stop and remedy unlawful employment discrimination. With a 2015 federal budget of over $365 million dollar
Evaluate the pros and cons of the following: Remaining with a government-operated system of administering airport security, versus returning to privately owned and operated,
Compare and contrast the affective and cognitive models of participative decision making.  How do these models differ in their conceptualizations of the links between motivati
Create centered-moving averages with the following values form: 10, 100, and 200. How do the moving averages for the same values of m compare between a trend-moving average an
Write a customer environment of the Pinkberry Company around 500 words with references in this paper current as well as potential customers are identified and described.
write an eight to ten page project paper:- Business Introduce your business idea.-Describe the Business type (new business, franchise, operating business) and include rational
Southwest Airlines is a major carrier based in Texas, and has made a strategy of cutting fares drastically on certain routes with large effects on air traffic in those marke