投资学第7版Test Bank答案26(17)

2021-01-20 18:47

投资学第7版Test Bank答案

48. How much can Alex be sure of having in the safe account at retirement?

A) $132,473

B) $162,557

C) $178,943

D) $189,211

E) $124,643

Answer: E Difficulty: Moderate

Rationale: The value in the safe account in 23 years will be $32,000*(1.04)23 +

$1,250*FVIFA4%,23 = $124,643.26.

49. How much can Alex expect to have in his risky account at retirement?

A) $1,400,326

B) $1,309,529

C) $1,543,781

D) $1,224,651

E) $1,345,886

Answer: A Difficulty: Moderate

Rationale: The value in the risky account in 23 years will be $96,000*(1.11)23 +

$3,750*FVIFA11%,23 = $1,400,326.

Use the following to answer questions 50-53:

Alan Barnett is 43 years old and has accumulated $78,000 in his self-directed defined contribution pension plan. Each year he contributes $1,500 to the plan and his employer

contributes an equal amount. Alan thinks he will retire at age 60 and figures he will live to age

83. The plan allows for two types of investments. One offers a 4% risk-free real rate of return. The other offers an expected return of 10% and has a standard deviation of 34%. Alan now has 40% of his money in the risk-free investment and 60% in the risky investment. He plans to continue saving at the same rate and keep the same proportions invested in each of the investments. His salary will grow at the same rate as inflation.


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