A young man has decided to go into business at the age 40. He wishes to accumulate P 200,000.00 at that age. On his twenty-fifth birthday he deposits a certain amount and will increase the deposit by 10% each year until the fortieth year. If the funds can be invested at 9.6% compounded annually, how much should his initial investment be?

Q: Roger decides to start an investment account by depositing $5,000 today. In one year he will invest…

A: Initial deposit (Year 0) = $5,000 Year 1 Deposit = $500 Year 2 Deposit = $600 Year 3 Deposit = $700…

Q: money should he have

A: A retirement plan refers to the financial strategies of saving, investments, or distributing money…

Q: Sam  has decided to go into business at the age 40. He wishes to accumulate P200,000.00 at that age.…

A: The given problem relates to growing annuity. A growing  annuity is a series of  cash flows…

Q: Consider Donald and Joe who are both 30- years of age and recently graduated with a degree in…

A: Here, Donald's Investment per month is $1,000 Joe's Investment per month is $2,000 Interest Rate is…

Q: Adriana wishes to accumulate $2,000,000 in 35 years. If 35 end-of-year deposits are made into an…

A: Future value of annuity  =P*[(1+r)^n-1]/r Where, P = annual payment r = rate of interest n = no. of…

Q: Cris Li decided to go into the business at the age of 23, he deposits a certain amount and will…

A: Depositing a fixed amount of money in equal intervals of time for a certain period is called…

Q: Mr. Lau is updating his estate plan for himself and his family. He would like to provide an income…

A: Life insurance provides financial coverage provided by insurance companies after the death of…

Q: Jeremy is investing $5,000 today and will do so at the beginning of another nine years for a total…

A: The future value of the annuity due is the future worth of a cash flow series receivable/period at…

Q: Mike Gordon wishes to have $80,000 in five years. If he can earn annual interest of 2%, how much…

A: Amount need to invest today = Amount required at the end of 5th year x PVIF (2%, 5 years)

Q: Starting at age 25, you deposit $2,000 a year into an IRA account. Treat the yearly deposits into…

A:

Q: Newman Quincy wants to withdraw $32,700 each year for 14 years from a fund that earns 10% interest.…

A: 1. How much must he invest today if the first withdrawal is at year-end?  Year Cash flows pvf @…

Q: Michael Jones plans to save $5,928 every year for the next eight years, starting today. At the end…

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

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: At the age of 25 Riley starts saving for retirement. If his investment plans pay an APR of 6%…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings…

A: John age = 25 years he saved up to = $10000     annual interest rate = 6% 0.06/12 = 0.005  every…

Q: Cameron is saving for his retirement 22 years from now by setting up a savings plan. He has set up a…

A: Time period till retirement is 22 years Quarterly saving of $97.00 Time period of saving is 12 years…

Q: Derek will deposit $7,502.00 per year for 23.00 years into an account that earns 8.00%, The first…

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

Q: A client wants to retire in 20 years and expects to enjoy retirement for at least 25 years. They…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: Consider Donald and Joe who are both 30- years of age and recently graduated with a degree in…

A: Amount they will have is future value of monthly savings

Q: our sister turned 35 today, and she is planning to save Php7,000 per year for retirement, with the…

A:

Q: Ted Houser wishes to accumulate a fund of $40,000 for the purchase of a house and lot. He plans to…

A: The computations as follows: While considering the table of future value of annuity, it can be…

Q: You have begun a 401k at work, contributing $1,000 at the end of each year. How much is your account…

A: The worth of an account in the future can be calculated using the FV function in Excel.

Q: When he started work on his twenty-first birthday, D. B. Cooper decided to invest money each month…

A: Given information: Future value is 1,000,000 Present age is 21 Retirement age is 60 Interest rate…

Q: On January 1, Alan King decided to transfer an amount from his checking account into aninvestment…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: Mr COVID is 25 years old and is planning to accumulate 10 million pesos on the day of his retirement…

A: Accumulation at retirement = 10,000,000 N = Number of withdrawals = 29 years and 6 months i.e. 354…

Q: A young man has decided to go into business at age 40. He wishes to accumulate P200,000.00 at that…

A: Given: Future Value = P200,000 Current Value invested = x Deposit will increase each year by 10%…

Q: James invests $20,000 on his 25th birthday and plans to add $2,000 to his investment each year until…

A: Investment means engaging your funds to generate income in the future. Interest is a return which is…

Q: Winston is saving for a trip that he'd like to take for his 25th birthday in three years. If he…

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

Q: Suppose you are 40 years old and plan to retire in exactly 20 years. 21 years from now you will need…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Henry Quincy wants to withdraw $30,000 each year for 10 years from a fund that earns 8% interest.…

A: How much must he invest today if the first withdrawal is at year-end? The present value of ordinary…

Q: Mr. Arman has decided to start saving for his retirement. Beginning on his twenty-sixth birthday,…

A: It is required to find the future value in the accounts of Mr. A and Mr. J to know who will be…

Q: Benjamin wants to have $12,000 in 15 years after investing in an account that earns 4.2% compounded…

A: Future  Value or Amount that Benjamin wants is $12,000 Time period is 15 years Interest rate is 4.2%…

Q: John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings…

A:

Q: Marie's current salary as a Systems Engineer is $100,000 per year. She's planning to place 18% of…

A: The future value of an investment is calculated by multiplying the invested amount by 1+r factor for…

Q: Tony Sanchez plans to retire and to withdraw 10 annual withdrawals that will start at P60,000 at the…

A: The initial deposit will be the sum of the present value of all the withdrawals in the future.

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: An engineer who is planning his retirement has decided that he will have to withdraw ₱10 000 from…

A: Retirement funds are the funds that are accumulated by an individual in his/her pre-retirement life…

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = 28000 NOMINAL RATE = 512%=5.5% inflation = 8.7% n = 13 years ( 18-5)

Q: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…

A: Investments are the ways through which money is saved in various financial instruments and accounts…

Q: To ensure his retirement income, a 40-year old man plans to purchase annuity when he turns 65. The…

A: Monthly Annuity Payments = 7500 Time Period = 20 years * 12 = 240 months Interest % = 5%/12 End of…

Q: Tony Bautista needs $25,000 in 4 years. What amount must he invest today if his investment earns 12%…

A: The common formula used to calculate is Future value = Present value (1 +r )^n

Q: Mrs Sam has deposited $ 18,000 in a bank at the rate of 7% per annum. Find out how much she will…

A: Given: Deposit = $18,000 Period 12 years Interest rate = 7% or 10%

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 mother wishes to set up a savings account for her son's education. She plans on investing $750…

A: Future value of ordinary annuity computes the total amount of periodic payments at a certain time…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.