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Kaplan MM255 unit 7 asssignment




Question;Unit 7: Instructor;Graded Assignment;Annuities;In;this and future Instructor Graded Assignments you will be asked to use the;answers you found in the Unit 1 Assignment.;Note;For these questions you need to cite a reliable source for information, which;means you cannot use sites like Wikipedia,, and Yahoo? answers. If you;do use those sites the instructor may award 0 points for your response.;The;Assignment problems must have the work shown at all times. The steps for;solving the problems must be explained. Failure to do so could result in your;submission being given a 0. If you have any;questions about how much work to show, please contact your instructor.;Assignments;must be submitted as a Microsoft Word? document and uploaded to the Dropbox for;Unit 7. Please type all answers directly in this Assignment below the question;it applies to.;All Assignments are due by Tuesday at 11:59 PM ET of the assigned Unit.;Note;All interest rates are to be assumed to be yearly;interest rates.;Question 1;(10;points);1.;You wish to deposit $500 per month into an account for 36 months. Assume your;interest rate is equal to the prime interest rate.;a) How much do you have (total) in;the account after 36 months?;b) How much of that total is interest?;Question 2;(10;points);2.;Two people, Ella and Jane, decide to start saving for retirement. Ella decides;to invest $4000 a year into an annuity at the age of 25. At the age of 35 she;stops making investments and just leaves the money there. Jane on the other;hand, decides to start investing $4000 a year at the age of 40 and invests that;money for every year thereafter. Assuming both retire at 70, and that the;interest rate both get on their investments is 10% (compounded annually) who;has the most money in their account at age 70? Explain why you pick the answer;you pick.;Question 3;(10;points);3.;At the age of 30 you decide to start saving money. At first you can only afford;to deposit $200 per month. However, at the age of 38 you are able to deposit;$300 per month. Then at the age of 45 you raise your monthly deposit again to;$500 per month. Finally at the age of 50 you get promoted to president of the;company and are able to deposit $2000 per month into the account. Assuming your;account is earning (prime interest rate + 4%) in interest, compounded monthly;how much do you have in your account at the age of 70? Hint: Treat each time;that you change the deposit amount as a seperate annuity, and compute the;future value (FV) on each annuity seperately. Assume that each annuity earns;compound interest during the time it is not receiving deposits.;Essay;(15;points);4.;It is commonly assumed that the stock market yields a 10% rate or return (on;average) on investments made in the market long term. Write an essay looking at;the advantages and disadvantages of investing in the stock market long term.;Requirements;for essay;?;Write your essay in this document ? do not;save it in a separate file.;?;You must clearly state your position with;well-structured paragraphs using proper grammar, spelling, and sentence;structure.;?;This is not an ?opinion? question ? you must;offer evidence to support your position, using properly-cited sources.;?;Your answer must be between ?-1 page in;length.;?;You must cite and reference at least one;source (book, website, periodical) using APA format. The required website;counts as one source;?;You must state at least one clear advantage;and one clear disadvantage in your essay. However more references are recommended.;?;Hint: Some major stock market events to;consider are the crash of 1929, the flash crash of 2011, the dot com era of the;late 90's, the fast drop in value in 2007-2008 then the market's climb back up;in 2009 - 2012. Research into those may help you to get started.;You;may submit your Assignments to the Math Center for review. Tutors will not;grade or correct the Assignment, but they will provide guidance for;improvement. Tutors will not, however, help you find web sites for the;Assignment.


Paper#60321 | Written in 18-Jul-2015

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