6.7.0: Exercises
- Page ID
- 171719
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For the bonds with the given properties, find a. the amount paid each year and b. the total amount earned with the bond.
In the following exercises, find: a. the return on investment and b. the annual return for the bond described. Round to two decimal places.
For the following exercises, 70 shares of stock were purchased for $31.50 per share 5 years ago. Over the 5 years, the total of all dividends earned from this stock was $6.34 per share. The stock is sold for $34.83.
For the following exercises, 10 shares of stock were purchased for $18.91 per share 3 years ago. Over the 3 years, the total of all dividends earned from this stock was $3.18 per share. The stock is sold for $22.01.
For the following exercises, use the given stock table to answer the following:
- What was the 52-week low?
- What was the dividend?
- What is its year-to-date performance?
- What is its yield?
In the following exercises, find the future value of the mutual fund or IRA with the given annual deposit, the duration of the investment, and the assumed annual, compounded, percentage rate.
In the following exercises, find the annual deposit necessary, into an IRA or mutual fund, to reach the stated financial goal, given the assumed annual, compounded, interest rate, and the duration of the deposits. Convert that annual deposit to a monthly amount.
In the following exercises, Cheryl’s company offers a 401(k) account to all employees. The company will match employee contributions up to 6% of the employee’s salary. She earns $81,000 per year. Cheryl decides to deposit, or contribute, $10,000 annually in the 401(k). She expects a return of 9.5% per year.
In the following exercises, Lavanya’s company offers a 401(k) account to all employees. Her annual salary is $58,000. The company will match employee contributions up to 7% of the employee’s salary. Lavanya decides to deposit $3,200 annually in the 401(k). She expects a return of 8.5% per year.
In the following exercises, Ruslana wants to use her 401(k) to save $1,400,000 when she retires in 36 years. She assumes the plan will yield 11% compounded annually. Her company will match contributions up to 5% of annual salary. Her salary is $48,000.
In the following exercises, Remy wants to use his 401(k) to save $1,750,000 when he retires in 30 years. He assumes the plan will yield 10.4% compounded annually. His company will match contributions up to 6% of annual salary. His salary is $78,000.