A man has deposited ₱50 000 in a retirement income plan with a local bank. This bank pays 9% per year, compounded annually, on such deposits. What is the maximum amount the man can withdraw at the end of each year and still have the funds last for 12 years?

A man has deposited ₱50 000 in a retirement income plan with a local bank. This bank pays 9% per year, compounded annually, on such deposits. What is the maximum amount the man can withdraw at the end of each year and still have the funds last for 12 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

See similar textbooks

Related questions

Q: A couple secured a 4,000,000 php housing loan from a financing company that gives 12% interest…

A: Equal monthly installment (EMI) is a monthly amount paid towards the loan taken by the borrower.EMI…

Q: 1. Manda Bamkeng deposits Php 50,000 every beginning of the month for 4 years with 2% compounded…

A: Note: As per the rules of Bartleby,in case of multiple unspecified questions only the first question…

Q: A man borrowed 200,000 from his friend and agreed to pay after 6 years at an interest rate of 10%…

A: Given: Amount Borrowed: 200,000 Loan tenure in years: 6 Loan Interest Rate: 10% Annual Deposit…

Q: Suppose Mrs. Aquino would like to save Php 400 at the end of each month, for six months in a fund…

A: In the given question Php 400 will be deposited at the end of each month for 6 months. The amount…

Q: You would like to have $8,000.00 in 15 years for a special vacation following graduation by making…

A: Using the PMT function in excel

Q: Daryl Yap invested the amount of Php100,000 in a bank that offers 15 % per annum simple interest.…

Q: The amount a person would need to deposit today to be able to withdraw $6,000 each year for ten…

A: Working note:

Q: Starting on his 25th birthday, Jason makes 20 semi-annual payments of P15,000 each in a savings…

A: Compound interest refers to the interest that is calculated on a deposit or loan on the basis of an…

Q: A person wants to make an amount of $ 5,000 to accumulate over a period of 15 years so that he can…

A: Annual, or yearly, billing is a popular choice for many businesses since it delivers a whole year of…

Q: 4. Vincent wants to deposit Php 5,000 at the end of each quarter, for 3 years in a bank that gives…

A: Given Principal = 5,000 Rate (r) = 8% pa or 2 % (8% /4) quarterly Period (n) = 12 periods (3 Yrs…

Q: Peter has RM10,000 that he can deposit in any three savings accounts for a 3-year period. Bank A…

A: answer deposit amount =RM10,000 Rate of interest = 4% period = 3 year bank A = compounding annual…

Q: At the age of 35 John began contributing 10,500 Php every month to a retirement fund. If his money…

A: Using excel nper function

Q: If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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

A: Note:- “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Eleanor makes year-end deposits of P500.00 the first year, P550.00 the second year, P605.00 the…

A: Computation:

Q: Gilbert got a loan of P100,000 from a local lending agency at 13% compounded annually. Their…

A: Here, Loan Amount is P100,000 Interest Rate is 13% Time Period is 5 years Each successive payment is…

Q: How much must a man place in a fund at the end of each month in order to have P12,500 at the end of…

A: Let the monthly payment = X Future value of annuity = P 12500 Interest rate = 7% per annum Duration…

Q: If I would like to have $250,000 in my savings account after making contributions for 30 years, what…

A: Present Value = Monthly Contributions * PVAF ( Monthly Rate, number of Months )

Q: Whitney deposited $200,000 into a savings account that has an annual interest rate of 8% compunded…

A: Interest is an extra amount which is received or paid on deposited or borrowed amount for the…

Q: Eric invested his savings in a bank at 3.75% compounded monthly. How much money did he invest to…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Mr. A wants to receive a consistent amount from a bank that offers 60% nterest to be compounded…

A: Interest Rate = 6% Compounded Annually First Withdrawal after 5 years Time Period for years (T) = 4…

Q: An Engineer deposits 7,000 pesos every year end in a savings account that pays nominal annual…

Q: If ₱17,000 is deposited at the end of each year for 16 years in a bank that give 7% interest per…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Marwan just deposited $13,000 into his account at Bank Muscat. The bank will pay 2.3 percent…

A: Deposit amount (P) = $ 13000 Annual interest rate (R) = 2.3% Period (N) = 15 Years

Q: P25,000 on top of his regular annual deposit. HoW much money can he withdraw from the fund ten years…

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

Q: At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8%…

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

Q: How much will be her savings after 8 years?

A: PMT is $6,000 semi annually, n= 12 compounding monthly, t=1/2 , 1, 3/2 , 2, 5/2, 3, .....8 which is…

Q: Your grandmother set up an annuity, in which she will receive a monthly payment from the bank of…

A: The present value of an annuity is the present value of a series of cash flows at a certain rate of…

Q: A man borrowed Php200000 from his friend and agreed to pay years at an interest rate of 10% per…

A: Loan amount = Php 200000 Interest rate = 10% Future value required (FV) = Loan amount*(1+Interest…

Q: John contributes $5,000 per month into an account. How much will he have in the account after 25…

A: In the given question we require to calculate the future value of account after 25 years is john…

Q: Kyle borrowed P100,000 to be paid in 10 years, and established a sinking fund to provide for the…

A: The time value of money plays an important role in the determination of the present worth and future…

Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Amount is the sum of the initial principal amount and interest accumulated on it during the time…

Q: Jason makes six end-of-year deposits of $2,000 each in a savings account paying 5% compounded…

A: Annual deposits = $2,000 Rate = 5% First calculate the future value of annuity at the and of 6…

Q: A civil engineer who is about to retire has accumulated 750 000 in a savings account that pays 6%…

A: The question is based on the concept of Financial Management. Annuity refers to the series of equal…

Q: Metehan Atay invests 550 pounds per week in the bank for an investment that will earn him 20% per…

A: An annuity is a sequence of periodic cash flows with a fixed amount at equal time intervals over a…

Q: Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How…

A: Multiple questions asked, so we can solve only first one or question asked as per requirement under…

Q: Mr. Canlapan deposited his money from selling his old vehicle. The fund would allow him to withdraw…

A: Determine the value of the fund deposited after a year using the Excel PV function with the…

Q: Hugo loaned P200,000 from a local bank to be paid back uniformly in five years. How much will he pay…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Mr. Nailor invests $19,000 in a money market account at his local bank. He receives annual interest…

A: In this question we need to calculate the holding period return for Mr. Nailor. First we need to…

Q: Harry plans to deposit $3,000 at the beginning of each year into a savings account earning 2.75%…

A: The amount which is deposited at the beginning of each period is called as annuity due. The period…

Q: A mother wishes to have Php800,000 eight years from today for her son’s graduation. How much should…

A: Future value (FV) = Php800,000 Monthly interest rate (r) = 0.0116666666666667 (i.e. 0.14 / 12)…

Q: Mr smith wants to borrow P100,000 from a bank to rebuild his shop from damages caused by an…

A: First we need to calculate size of quarterly payment of loan amount. PMT =PV*i1-1(1+i)n where PV…

Q: Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How…

A: Note: We are providing the solution of question no.1 as specified in the first line of the question.…

Q: If he deposits 2000 at the end of every year into a special account for seven years and the bank…

A: This problem can be solved in light of annuity and future value. Total amount in the deposit account…

Q: A young engineering student has just graduated in college. He is able to obtain his first job and…

A: Annual deposit = P 5000 Annual interest rate = 12% Future value = $ 2,000,000

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?