6. Sean needs to decide how to invest his savings. He can choose between 3.95% compounded semi-annually, 3.92% compounded quarterly, or 3.90% compounded monthly. Which choice will maximize his return?
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A: Working note:
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A: Monthly deposit (P) = Php. 2000 Number of monthly deposits (n) = 60 Interest rate = 12% Monthly…
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A: Effective Rate = 13% Semi Annual Compounding Number of compounding periods = 2
Q: To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 4.8%…
A: Rate of Interest = 4.8% Compounded Monthly Time Period(t) = 18 years n = 12 Future Value = $97,000…
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Q: Reuben has decided to invest to help with his retirement savings. How much would he have to invest…
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Q: Sean needs to decide how to invest his savings. He can choose between 3.95% compounded…
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Solved in 2 steps
- Sean needs to decide how to invest his savings. He can choose between 3.95% compounded semi-annually, 3.92% compounded quaterly, or 3.90% compounded monthly. Which choice will maximize his return?Reuben has decided to invest to help with his retirement savings. How much would he have to invest to have $113,400 after 19 years, assuming an interest rate of 3.43% compounded quarterly?Ryan wants to earn 13% effective interest,at what rate compounded semi-annually should he invest his money? Show solution. A.) 15.24% B.)14.52% C.) 13.42% D.) 12.24%
- Your father is considering purchasing an annuity that pays $5,000 at the beginning of each year for 5 years. He could earn 4.5% on his money in other investments with equal risk. What is the most he should pay for the annuity? 20,701 $21,791 $22,938 $24,085 $25,289Christine would like to know the value of their savings, assuming that they deposit $750 each month and steadily increase the size of their deposit by 3.00% csa for 25 years, and earn an annual return of 7.25% ca. What is the present value of this stream of deposits?suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal?
- Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He wishes to receive a payout of $1,500 per month for twenty-five years. (a) How much money must he deposit if his money earns 7.3% interest compounded monthly? (Round your answer to the nearest cent.) (b) Find the total amount that Dean will receive from his payout annuity.Cooper wants to save for college. Assuming he puts $5,000 into an account at the end of each year for five years and earns 12% compounded annually, how much will he have saved by the end of the fifth year (rounded to the nearest whole dollar)? a. $25,000. b. $31,764. c. $18,024. d. $14,096.Suppose Ted deposits $10,000 in a savings plan earning 5% compounded annually and Tess deposits $10,000 in a savings plan earning 10% compounded annually. Both leave their money on deposit for 40 years. Because Tess’s rate is twice as great as Ted’s rate, is it true that Tess will earn twice as much interest? Explain why or why not. Then show calculations to prove your point of view. What is the future value for each investment?
- You are saving for retirement. To live comfortably, you decide you will need to save $4 million by the time you are 65. Today is your 22nd birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 6%, how much must you set aside each year to make sure that you will have $4 million in the account on your 65th birthday? The amount to deposit each year is $_________________ (Round to the nearest dollar.)How much do you need to save each year for 30 years in order to have $775,000, assuming you are investing the money in an account that earns 8%? How much of the $775,000 comes from contributions (your out of pocket costs)?How much does Herbert need to save each year for 10 years as a regular savings payment if he wants to retire in exactly 10 years with $1,023,000.00, can earn 13.13 percent on his savings, starts making regular savings payments in exactly 1 year, and saves an equal amount each year with one exception, which is that in 1 years, he plans to make an extra contribution of $30,600.00 to savings?(ROUND THE VALUE TO 0 DECIMAL AND ENTER THE POSITIVE VALUE)
