When you graduate college at the age of 20, you want to start saving up for retirement. if your investment pays a fixed apr of 8.5% and you want to have $500,000 when you retire in 45 years, how much would you need to deposit, at the beginning of each month, to reach this goal? a. $79.53 c. $81.98 b. $80.13 d. $82.65

Answer-

You need to deposit $80.13 at the beginning of each month, to reach this goal.

Solution-

We know that,

Where,

P = periodic payment

r = rate per period

n = number of period

Here,

Putting the values,

on a coordinate grid, point a is at (−4.0, −2.4) and point b is at (4.0, −2.4). point b is a reflection of point a across the –axis. input either a lowercase x or i think is the right awnser

step-by-step explanation:

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%