5. Suppose you want to have $900,000 forretirement in 30 years. Your account earns 8% interest. a) How much would you need to depositin the account each month b) How much interest will you earn?
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A: Given information Future Value = $6000 Time Period =10 years *12= 120 periods(As periods are…
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A: We will make use of the excel function NPER to get this answer. This function returns the number of…
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A: Amount = $2,000 = A Time period = 10 years = T Interest rate = 2% = R Compounded monthly where it…
Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest…
A: Future Value = $800,000 Time period = 25 years Interest rate = 7%
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A: The amount of deposit to be made today can be calculated using the Present Value Formula
Q: Suppose you want to have $400,000 for retirement in 30 years. Your account earns 5% interest. How…
A: Computation as follows: Hence, each month deposit will be $480.62.
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A: Future value of ordinary annuity(cash flow due at the end of year) can be calculated by using this…
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A: Future value required (FV) = $400,000 Interest rate = 5.1% Monthly interest rate (r) = 5.1%/12 =…
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A: Amount that need to be deposit every month can be calculated using the formula of future value of…
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A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…
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A: a) Hence, amount to be deposited in each month is $624.37.
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A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…
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Q: ou deposit $300 in an account earning 6% interest compounded annually. How much will you have in the…
A: Amount Deposited = $300 Interest Rate(r) =6% Years(N) =10
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A: Using excel PMT function
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A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
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A: The future value of any deposits is the sum total of all the deposits made compounded at interest…
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A: Introduction Future Value: The value derived for the money invested today at a future point of time,…
Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 7% interest. a.how…
A: Working note:
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 7% interest. a) How…
A: Monthly payment refers to the periodic payment. These payments are made upto a fixed period or as…
Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How…
A: An annuity is a series of equal payments made at regular intervals. It accumulates interest on a…
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A: Future value is the value of the cash flows at the end of certain period. Future value of annuity is…
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A: The present value is the current value of the amount that has to be paid or received in the future.
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A: Computation:
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Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How…
A: Future Value $ 6,00,000.00 Time Period 25 Interest Rate 10%
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 8% interest. a) How…
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A: Present Value is the today's value of a future amount at a given interest rate for a specified time…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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A: Annual withdraw each year(P) = $45,000 Interest Rate(r) =10% Years(n) = 25
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A: The future value is an estimation of value received in future on the basis of periodic cash deposits…
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Q: Suppose that you invest $20 000 in an account paying 8% interest. You plan to withdraw $2000 at the…
A: Investment = $ 20,000 Annual interest rate = 8% Annual withdrawal = $ 2000 Period = 15 Years
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A: The question gives the following information:
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- Assume that time today is Dec. 13, 2022. Determine what is being asked in each problem.1. Determine the value of ₱10,000 on July 12, 2022 assuming ordinary simple interest at 5.14% per annum.2. Determine the value of ₱20,000 on May 14, 2023 assuming simple discount of 4.96% per annum and using the Banker's Rule. 3. How much is the value of ₱40,000 on April 13, 2024 if money is worth 7 1/5% effective per year?Question content area top Part 1 Calculate the percentage return on a 1-year Treasury bill with a face value of $10 comma 00010,000 if you pay $9 comma 764.359,764.35 to purchase it and receive its full face value at maturity.CH9HW i Help Save & Exit Submit a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $140,000 in a savings account on January 1 of this year. The savings account will earn 8 percent annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). b. At the end of each year, a different friend, Claire, plans to deposit $10,400 in a savings account. The account will earn 11 percent annual interest, which will be added to the fund balance at year-end. Claire will make her first deposit at the end of this year. (FV of $1, PV of $1, FVA of
- Y8 Savings Calculator Initial Savings Balance $ 19,000.00 Deposit Amount Per Period $ 360.00 Deposit Interval Monthly Number of Deposits 12 Annual Rate of Return 3.250% Ending Balance $0.00 January 31, 2022 February 28, 2022 March 31, 2022 April 30, 2022 May 31, 2022 June 30, 2022 July 31, 2022 August 31, 2022 September 30, 2022 October 31, 2022 November 30, 2022 December 31, 202210. Dale wants to invest money in a 6% CD account that compounds semiannually. Dale would like the account to have a balance of $50,000 five years from now. How much must Dale deposit to accomplish her goal? Choose closest answer. A) $35,069. B) $43,131. C) $37,205. D) $35,000. PV 10pds 3% .7441 ,PV 10pds 6% .86262, PV 5 pds 6%, 7018 PV 5 pds 3% .7000Q5: Calculating Present Values: Imprudential, Inc., has an unfunded pension liability of $415 million that must be paid in 20 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 5.2 percent, what is the present value of this liability? (Hint: Use Q2 excel sheet to compute present value)
- 39 Identify the correct formula to calculate the payment for a loan, where the rate is 6%, the loan amount is $2,000, and payments will be made monthly for six years. =PMT(6,6*12,2000) =PMT(.06/12,6*12,-2000) once=1/1b1435-b60f-40fb-ad57-d89084c2075a&launchCode=qe8mtdEeV5pWjPP2nq... =PMT(.06,6*12,-2000) =PMT(.06,6*12,2000)Sub : FinancePls answer very faast.I ll upvote. Thank You Bobbie has $6,000 that she wants to invest today to grow into $50,000. She finds an investment that earns 8.5% with quarterly compounds. How many years will she wait till she has the $50,000? Group of answer choices 25.99 years 28.00 years 25.21 years 100.83 year Please answer using excel function for NPERA6) Finance consider a project that will cost $95,000 today and is projected to bring in $55,000 in year 1, $40,000 in year 2, and $20,000 in year 3. cost of capital is 10%. what is the projects PI?
- MCQ'S: 21) If a 16-year-old high school student put $2,000 at the end of each year for 4 years into an IRA that earned a rate of 9%, how much would she have accumulated by age 65? Assume funds are left to accumulate for 45 years (age 20-65) at 9%. a.$386,616 b.$9,146 c.$1,767,995 d.$442,014 . 22) Clinch River Power is considering refunding a $150 million 12% coupon bond with a 10% coupon bond, 20-year bond. The current bond also matures in 20 years and is now callable at 110% of par. The unamortized flotation cost on the old issue is $540,000, and the flotation cost of the new issue is 0.925%. Clinch River estimates that there would be a 4-week period where both bonds would be outstanding. The company has a weighted cost of capital of 11% and a 40% marginal tax rate. Clinch River has decided to sell the refunding issue. What is their reasoning? a.NPV is approximately $10.808 million b.NPV is…D6) Finance URGENT!! demonstrate that the effective cost of funds for a $40 million 90-day bank bill issue in April is the forward rate established in June (when 30 August BAB futures are sold at 97.45), rather than the BBSW of 3.05% when the bills are issued in juneNeed an accurate answer on this! Sprint Inc. expects the following: UCFBT=$ 10 million in perpetuity from the end of year 1. Debt= $ 20 million. Rb =5% Tax rate is 50% R0 =10% Debt is fully amortized over 3 years in three equal payments. Find the value of Sprints’ equity today. Question content area bottom Part 1 Sprints Equity today is $ million. (Round to two decimals) Use 99 if the answer is indeterminate