Question 13 pts   You know that you need \$2,100,000.00 in order to...

Question

# Question 13 pts   You know that you need \$2,100,000.00 in order to...

Question 13 pts

You know that you need \$2,100,000.00 in order to fund your retirement in 30 years. Assuming you can earn 9% annual return on your investments, how much do you need to invest per month, in order to reach your retirement goal?

619.00 per month

13,200 per year

1,147.00 per month

988.00 per month

Flag question: Question 2Question 23 pts

If you want to live on the equivalent of \$100,000 per year (in today's term) how much money will you need 25 years from now, at 3.5% inflation?

236,324.00

199,009.00

274,917.00

288,011.00

Flag question: Question 3Question 33 pts

You want to retire on \$75,000 per year (in today's terms). You will retire in 35 years. Inflation is expected to be 3%. How much will you need per year during retirement to have the same standard of living as you have today?

312,090.00

126,117.00

211,039.00

188,197.00

Flag question: Question 4Question 43 pts

Your plan is to have \$4,500,000 on hand to retire 40 years from now. At 9% interest (annual), how much do you need to invest each month, in order to save the \$4.5 million?

1,244.00

2,276.00

1,890.00

961.00

Flag question: Question 5Question 53 pts

How much total interest will you pay if you borrow \$175,000 for 30 years (monthly payments) at 8% annual interest?

462,271.00

212,877.00

319,001.00

287,271.00

Flag question: Question 6Question 63 pts

Loan of \$175,000, 8% interest (annual), monthly payments, 360 periods (months): How many periods to pay off this loan, if you pay an extra 350 per month in extra principle?

239

219

301

189

Flag question: Question 7Question 73 pts

Compare the following two loans.

Loan 1: \$175,000, 8% annual interest, 30 years (monthly PMTs)

Loan 2: \$175,000, 7% annual interest, 15 years (monthly PMTs)

How much more total interest do you pay on the 30 year loan vs. the 15 year loan?

100,002.00

287,271.00

108,130.00

179,140.00

Flag question: Question 8Question 83 pts

Compare the following two loans.

Loan 1: \$175,000; 8% annual (monthly payments); 30 years.

Loan 2: \$175,000; 7% annual (monthly payments); 15 years.

If you pay an additional \$250 per month in additional principle on Loan 1 only, which loan pays off sooner?

Loan 2 pays off sooner

They have the same exact payoff date

Not enough information to figure this out

Loan 1 pays off sooner

Flag question: Question 9Question 93 pts

You want to retire on the equivalent of \$50,000 per year in today's money. Inflation is expected to be 3%. You will retire in 30 years. You will earn 10% annually on your investments from not till retirement and you will earn 8% during retirement (which is expected to last 20 years). How much do you need to save per month in order fund this retirement?

1,118.00 per month

952.00 per month

634.00 per month

527.00 per month

Flag question: Question 10Question 103 pts

You want to retire in 30 years and be able to withdraw the equivalent of \$90,000 per year (in today's dollars) from a retirement fund. Assume 3% inflation. You plan to be retired for 20 years. Assuming you can earn 12% on your investments before retirement and 7% on your investments during retirement, how much will you need to save per month in order to be able to fund this retirement?

662.00

838.00

811.00

751.00

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