What was the annual rate of return on your investment

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Q1. If you invest the $13,000 you receive at graduation (age 23) in a mutual fund which averages a 11% annual return, how much will you have at retirement in 45 years?

Q2. You purchased a piece of property for $47500 eight years ago and sold it today for $87600. What was the annual rate of return on your investment?

Q3. Maya is going to buy a house in 3 years. She plans on using a down payment of $13000 at that time. If she plans on making yearly installments and can earn 8% on her money, how much must she deposit each year?

Q4. An insurance company offers you an end of quarter annuity of $15,000 per quarter for the next 10 years. They claim your annual return on the annuity is 8 percent. What should you be willing to pay today for this annuity?

Reference no: EM133138710

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