Welcome

## You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside \$450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of \$120,000 and is considering different alternative options: Investment 1: Investing that \$120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly. Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly. Required: a) Identify which Bank should Molly choose in Investment 1 by computing the effective annual interest rate (EAR)? b) Calculate the amount of money Molly would accumulate in Investment 1 after 15 years if she chooses Bank B? c) How much is the annual interest rate, assuming compounding annually Molly should aim at if she chooses to invest her \$120 000 in a saving account to get the \$450,000 ready in just 10 years from now? d) Calculate the monthly payment Molly needs to contribute into ANZ Investment Fund to get \$330,000 after 15 years in Investment 2? 3 e) In investment 2, if Molly changes to contribute \$1200/month to that super fund at the beginning of each month, how much money she would have in ANZ Investment fund after 15 years? f) Molly is offered an investment that will pay \$12 000 each year forever. How much should she pay for this investment if the rate of return 12% applies?

You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside \$450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of \$120,000 and is considering different alternative options:
Investment 1: Investing that \$120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly.
Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly.
Required:
a) Identify which Bank should Molly choose in Investment 1 by computing the effective annual interest rate (EAR)?
b) Calculate the amount of money Molly would accumulate in Investment 1 after 15 years if she chooses Bank B?
c) How much is the annual interest rate, assuming compounding annually Molly should aim at if she chooses to invest her \$120 000 in a saving account to get the \$450,000 ready in just 10 years from now?
d) Calculate the monthly payment Molly needs to contribute into ANZ Investment Fund to get \$330,000 after 15 years in Investment 2?
3
e) In investment 2, if Molly changes to contribute \$1200/month to that super fund at the beginning of each month, how much money she would have in ANZ Investment fund after 15 years?
f) Molly is offered an investment that will pay \$12 000 each year forever. How much should she pay for this investment if the rate of return 12% applies?

Tired of numerous paper assignments?
Rely on us and receive professional paper writing assistance!

## Who We Are

We are a professional website for customized writing. If you searched a question and stumbled into our website, you are in the right place to receive assistance with your coursework.

## Do you handle any type of coursework?

Yes. We have displayed prior orders to demonstrate our experience. We can answer this question for you as we have previously. Please fill out our Order Form so that we may ensure its flawlessness. Correctly completing the order form will help our staff with reference, requirements, and future communication.

## Is it hard to Place an Order?

1. Click on the “Order Now” tab at the top menu or “GET A FREE QUOTE” icon at the bottom and a new page will appear with an order form to be filled
2. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process. Submit detailed paper instructions, upload necessary files if needed and provide your contact information – you are almost done!
3. Proceed with the payment- click on “PROCEED TO CHECKOUT” at the bottom of the page. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it. All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.