35. Upland Family Practice Center plans to invest $60,000 in a money market account at the beginning of each year for the next five years. The investment pays 3 percent annual interest. How much would this investment be worth after five years of investing?

Q: 13.  happy Corp. established a fund where they pay $200 annually into the fund. The interest rate…

A: Year Year-1 Year-2 Year-3 Year-4 Year-5 Total Amount that $200 invested each year will become…

Q: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…

A: Future value is the expected value of current sum in a future date at a given rate of return. Given:…

Q: How much must you put away at the end of each year

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Suppose someone wants to accumulate $40,000 for a college fund over the next 15 years. Determine…

A: Given, The required amount is $40000. Term is 15 years

Q: You plan to invest $1,200 at the end of year 1, $2,000 at the end of year 2, and $3,700 at the end…

A: Given data; Amount deposited at the end of year 1 = $1200 Amount deposited at the end of year 2 = $…

Q: An engineering student decides to accumulate $500,000 by her sixt pects to start by investing a…

A: Explanation of Concept:-  Annual worth concept which is been used in the present problem states that…

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: An effective annual rate is the modified interest rate from the nominal rate that represents the…

Q: 28. Your brother has asked you to help him with choosing an investment. He has $5,200 to invest…

A: In this question we are required to calculate the value of investment in five years i.e. we need to…

Q: Suppose you have an opportunity to invest in a fund that pays 12% interest compounded annually.…

A: Given: workings:

Q: Seventeen (17) years ago, you deposited $25,500 into an investment fund. Five years ago, you added…

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

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Anenterprising student invests 1,000 at an annual interest rate that will grow the original…

A: Initial investment (X) = 1000 The investment doubles every 4 years. Let the interest rate = r

Q: Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional…

A: a) The computation of effective annual rate for 10 year: Hence, the effective annual rate is 8.16%.

Q: Triangle Pediatrics is faced with multiple investment alternatives that pay interest as indicated in…

A: Future value is the value of the sum compounded to future date. formula: FV =PV×1+RMM×N where, FV=…

Q: A local Dunkin’ Donuts franchise must buy a new piece of equipment in 4 years that will cost…

A: Future value required (FV) = $81000 Interest rate = 16% Quarterly interest rate (r) = 16%/4 = 4%…

Q: 6. A company wishes to spend P40,000 for a new office copier and decides to set up a sinking fund to…

A: Money Required (Future Value) = 40,000 Present Value (value at start) = 0 N = 3 years Quarterly…

Q: A company wishes to make 5 equal annual investments so that on the date of the last investment, it…

A: Equal investment = 5 Cost of machine = $50,000 Interest rate = 4%

Q: Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional…

A: a) Computation:

Q: 1. What will be the maturity value of 12,000 investment for four (4) years at 15% compounded…

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

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A: Future value = Investment amount x FVF(8%, 3years)                      = $15,000*1.25971…

Q: A business sets up a sinking fund so they will have a $49,000.00 to pay for a replacement piece of…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

A: The given problem can be solved using FV function in excel. FV function computes accumulated amount…

Q: how many years

A: The $50000  fund is a lump sum amount today. The $6000 withdrawl per year is ordinary annuity. To…

Q: 44. A recent college graduate begins a savings plan at age 27 by investing $400 at the end of each…

A: Solution: (a) First we will consider the regular withdrawals for the last 25 years. For this, we…

Q: Laura has decided to invest $5,000.00 at the beginning of the quarter for 10 years. If the interest…

A: Annuity refers to series of equalized payments that are made either at start or end of specific…

Q: What amount should you invest quarterly for 30 years in a fund that earns 8% compounded quarterly,…

A: Time period = 30 years  Interest rate = 8% Future Value = P5,000,000

Q: A $500,000 whole life policy is available for $5150 per year, payable at the beginning of the year.…

A: Life policy per year $ 5,150 Insurance amount ($5,150 x 10%) $ 515 Savings plan ($5,150 x 90%) $…

Q: Tuck Hardware Store will have $30,000 payment due in 5 years. How much would they need to invest…

A: Computation:

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: Time value of money techniques helps us to find the values of the deposits at different time…

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A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Pinnacle Homes, a real estate development company, is planning to build five homes, each costing…

A: Formula: A = P x [ 1 + ( R / N ) ] NT Interest : Interest is a fee charged on the  Borrowed…

Q: Jill is considering three investments. All of them have an initial investment of $10,000 and last…

A: Initial Investment = $10,000 Number of Years = 10 Years Computation of Each Investment Profit…

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: The effective annual rate is the actual rate earned after considering the compounding periods in a…

Q: What is the size of the scholarship payments that students at a college would receive at the end of…

A: The scholarship amount will be the quarterly interest earned on such endowment fund

Q: A real estate development company is planning to build five homes, each costing $195,000, in 2…

A: We need to determine the cost of 5 homes then use the periodic interest rate, number of periods to…

Q: After completing your Bachelor of Business (Accounting) degree, suppose you secure a permanent…

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

Q: A corporation decides to deposit fixed payment per account earning 9% interest per year in order to…

A: Amount required after 9 years 235000   Period in years 9   No of period (Quarterly) 36   Rate…

Q: How much (in $) should the company invest now to have sufficient funds to build the homes in the…

A: Present Worth: It is the present value of the sum of the amount discounted at a specific rate of…

Q: A business must raise $70,000 in 8 years. What should be the size of the owners' quarterly payment…

A: In this, we have to calculate future value FACTOR and from that, we can get sinking fund payment. A…

Q: You are a financial adviser. Your client is thinking of investing $600 at the end of every six…

A: The time value of money is used to calculate the future value of the accumulated money invested as…

Q: Suppose that you just turned 25, plan to retire at 65, and estimate that you will need $9,049 per…

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

Q: How much money will AJ have at the end of eight years? ii. Suppose AJ decided that they need to…

A: Formula for Future value Annuity F = P*[(1+i)n-1]/i where as; P = Yearly payment amount, i = Rate of…

Q: The manager has 5 employees whose combined salaries through the end of this year are $300,000. If he…

A: The current worth of funds to be received in the future with one or more payments, discounted at a…

Q: Greg wants to have $25,000 in three years. He has $10,000 today to invest. The bank is offering…

A: The interest will be compounded quarterly. The interest will be sufficient enough that the…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.