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




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
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
Compare and contrast the structured interview, situational interview, and behavioral interview. Determine which type of interview would be more beneficial when interviewing
EVM has become especially popular as a mandatory contractual reporting methodology between contractors and vendors in very large projects. But it has come under attack in
Directions:  answer in complete sentences, and be sure to use correct English spelling and grammar.  Sources must be cited in APA format.  Your response should be four (4) pag
Calculate the multifactor productivity measure for before and after the new equipment (i.e. mugs per dollar cost). Enter the percentage change in productivity as your answer
Why is this important? Explain the major factors that lead to obtaining the benefits of power and influence. Describe what one can do to increase one's own share of that pow
This week's lesson discussed some of the legal and ethical issues with mediation. Consider and comment on the following questions. 1. Would you argue, that mandatory mediati
Comparing Investment Criteria.  Define each of the following investment rules and discuss any potential shortcomings of each. In your definition, state the criterion for acc
The Internet and technological advancements have changed the way organizations conduct business. From a chief executive officer of an organization, what would be the strateg