If Ken really saved $0.25 per week, what return would he have had to earn over 25 years
Question # 00029463
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Updated on: 10/27/2014 07:19 AM Due on: 02/28/2015
1 If Ken really saved $0.25 per week, what return would he have had to earn over 25 years to accumulate $30,000? If you assume a more realistic return of 12% per year, how much would he have to save per week?
2 Roberto has $20,000 in an investment account at his brokerage, invested to earn an expected 13% over the coming 5 years. He is buying an engagement ring for his fiancée, Sarah that costs $12,500. He is considering borrowing the cost of the ring on his credit card that charges him 18% and paying it back over 5 years. Using TVM calculations compare the direct cost of borrowing on the credit card versus the opportunity cost of selling some investments from his brokerage account.I need help but I want to learn exactly how those are calculated
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Solution: If Ken really saved $0.25 per week, what return would he have had to earn over 25 years