+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.


Ask Question & Get Answers from Experts
Browse some more (Business Management) Materials
Using relevant example to illustrate your arguments, critically analyze the different stages of the Tourist Area Life Cycle. Discuss how the model can serve as a basis for
Kenisha Morgan owns and operates Morgan's Furniture Emporium, Inc. The balance sheet totals for assets, liabilities, and owners'  Transaction analysis
Describe three types of systems used in organizations. Note the factors that normally lead to adopting the system and requirements that will likely push its future growth
Explain Many employees don't realize how some standard business practices put customer data at risk. Can you think of any examples of how customer data is put at risk in the
Compose a document that presents the marketing decisions and strategies embraced in marketing. The document is a proposal to be submitted to a client that needs assurance th
Recognize a great manager, either in your own company, or one with which you are familiar, or have read about. What makes this person stand out from other managers?
Assume capacity and sales can be doubled to 4,800 units. Again compute new net income if facilities costing 500,000DM are added at 5 year life. This is a straight forward co
The Uniform Commercial Code generally regulates commerce or trade on a national basis. Do you think that the UCC would directly or indirectly have any effect on internationa