1. If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?   2. What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?   3. Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don’t save any additional funds?

Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?

A: Lets understand, how to solve it.  For solving the question, we need to use below formula. = Amount…

Q: Suppose you need to accumulate GHȼ100,000 in 10 years. You plan to make a deposit in a bank now, at…

A: The future value of the growing annuity is the future worth of a cash flow series growing at a…

Q: If you deposit $10,000 dollars into a savings account, what interest would you need to be earning to…

A: Working note:

Q: 2. You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the…

A: We will make use of the excel function NPER to get this answer. This function returns the number of…

Q: You deposit $4,000 today in a bank that promises to pay an annual interest of 8%? a. What is future…

A: (1) (a.) FV =PV*(1+r)^n =4000*(1+8%)^12 =10072.68 (b.) If rate =8% with monthly compounding FV…

Q: d) You want to retire in 45 years with $1 million in the bank. You think you can get an average of…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: You deposit $3,000 in a bank account that pays 12% interest annually. How much will be in your…

A:

Q: Assume you deposit $5,900 at the end of each year into an account paying 11.75 percent interest.…

A: Annual deposit (P) = $ 5900 Annual interest rate (r) = 11.75%

Q: How much should you deposit at the end of each month into an investment account that pays 9%…

A: As per Bartleby Guidelines, we are allowed to do only one question if multiple different questions…

Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…

Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: 1. If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in…

A: Dear Student, as per Bartleby answering guidelines we can answer only the first one if the student…

Q: If you deposit $3,500 today into an account earnings an annual rate of return of 11 percent, what…

A: Deposit amount (P) = $ 3500 Interest rate (r) = 11% Period (t) = 35 Years

Q: 1. A man has a loan of 50,000 in a bank that gives 12% simple interest. How much is the interest if…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is the present value of a security that promises to pay you $5,000 in 20 years?  Assume that…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Suppose you invest $1,000 in an account paying 10% interest per year. How much will you have in the…

A: In this question future value is to be find out. Future value is the value of an asset which grows…

Q: Imagine that you deposit \$6,000$6,000 a year, starting one year from today, for four years into a…

A: We need to use future value of ordinary annuity(payment due at end of period) formula to get money…

Q: a) if the interest rate is 8%, what is the present value of the cash flows? b) what is the future…

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: You would like to have $500,000 when you retire in 30 years. How much should you invest each quarter…

A: The future value of any deposits is the sum total of all the deposits made compounded at interest…

Q: Suppose you want to have $500,000 for retirement in 20 years. Your account earns 8% interest. How…

A: Future value of each month payment (FV) = $500,000 Number of years to retirement = 20 Number of…

Q: If you put $850 in a bank today that pays (a) 13% interest per year, how much money could be…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: If you deposit $10,000 in a bank account that pays 10 percent interest annually, how much would be…

A: Future value of a lumpsum deposited today can be calculated using the future value…

Q: f  you  deposit  $10,000  in  a  bank  account  that  pays  10  percent  interest  annually,  how…

A: Future value = Principal*(1+r/100) ^n Where,  r = rate of interest n = no. of years

Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…

A: Since you have asked a question with multiple sub-parts, we will solve the first three questions for…

Q: A man can save 10,000 per month for 2years, If the bank offers 5% compounded monthly, what is n?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: If you want to have $22,327 in fifteen years, how much do you need to deposit in a bank account…

A: The deposit required today is calculated as the present value.

Q: Suppose for an annuity due, you want to have S30,000 in the bank after 20 years. Assuming you make…

A: Time value of money is a concept that helps in determining the value of future cash flows…

Q: Suppose you want to have $300,000.00 for retirement in 35 years. You plan to make regular monthly…

A: Future value is the value of the cash flows at the end of certain period. Future value of annuity is…

Q: You would like to have $550,000 when you retire in 40 years. How much should you invest each quarter…

A: Required Amount at retirement is $550,000 Time period is 40 years Interest rate is 6.4% Compounded…

Q: You just opened a brokerage account, depositing $4,000. You expect the account to earn an interest…

A:

Q: Assume you can earn 8.6% per year on your investments. a. If you invest $110,000 for retirement at…

A: Retirement savings is an important part for all the employees and for saving funds for retirement,…

Q: Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6…

A: Time Value of Money states that a dollar is worth more today than anytime in the future because they…

Q: You intend to accumulate RM5,713 in a bank savings account,4 years from now. How much savings must…

A: Future value = RM 5713 Period = 4 Years Annual interest rate = 10%

Q: Q1:If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in…

A: Answer 1.  The formula used for computation of future value: Future Value=Deposit Amount…

Q: Suppose you invest $130 a month for 8 years into an account earning 10% compounded monthly. After 8…

A: Future value of annuity is the recurring payment at regular interval compounded at specified rate to…

Q: Assume that you plan to buy a condo 5 years from now, and you estimatethat you can save $2,500 per…

A: The question requires to calculate the future value of annual instalments deposited in a bank. We…

Q: You have already $5,000 in your savings account today. You want to have $50,000 in your savings…

A: Data given: FV= $50,000 n= 10 years i= 5% p.a. Amount in savings account = $ 5000   Required: Amount…

Q: If you want to have $60,000 in 8 years, how much do you need to deposit in the bank today if the…

A: Here. Required Amount in 8 Years  (FV) is$60,000 Interest Rate (r) is 9% Time Period is 8 years

Q: Assume you borrow $200,000 from a bank today to buy a house at 4% interest for 30 years with monthly…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Assume you just deposited $1,000 into a bank account. The current real interest rate is 2% and…

A: Given data; Deposit amount = $1000 real interest rate = 2% inflation rate = 6%

Q: a. You are planning for retirement, and would like to have $1,000,000 in the bank when you turn 65.…

A: Compounding is a concept used in investing. In case of compounding, interest is earned on both the…

Q: If  you  deposit  $10,000  in  a  bank  account  that  pays  10  percent  interest  annually,  how…

A: Future value of a lump sum deposited today can be calculated using the future value formula. Here,…

Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 10% interest. How…

A: Future value (FV) = $ 700,000 Period = 20 Years Number of monthly payments (n) = 20*12 = 240…