Answered: amie is saving ₱10,000 at the end of…

amie is saving ₱10,000 at the end of each month. How soon can he retire if he wants to have a retirement fund of ₱250,000.00 and interest is 4.36% compounded monthly?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

See similar textbooks

Related questions

Q: How much does Tim need to save each year for 9 years as a regular savings payment if he wants to…

A: Formulas to be used In excel PMT(rate, nper, pv, [fv], [type]) Rate The interest rate for the…

Q: An engineer will deposit 10% of her salary each year into a retirement fund. If her current annual…

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

Q: Mr and Mrs Chong are considering two types of education saving for their children. Saving A requires…

A: Here, Details of Saving A: Deposit Amount is RM 500 at the end of each month Interest rate is 3%…

Q: anny is saving towards his vacation. He has determined that the total cost including airfare and…

A: Given: Cost of vacation 5000 Monthly savings 400 Time of deposit Month-end Annual…

Q: If money is worth 5% compounded quarterly, how much must Cristina save every end of three months to…

A: Money save in every quarter can be calculated using the formula of future value of annuity.

Q: Barry plans to invest $350 a month for the next 30 years, how much money will he have in his account…

A: Given data, monthly payment = $350 number of years = 30 years annual rate = 12% To calculate the…

Q: John and Rosamond want to retire in 15 years and can save $150 every three months. They plan to…

A: A= $150 r=6.72% n=15 m=4

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: John and Rosamond want to retire in 8 years and can save $230 every 3 months. They plan to deposit…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Peter has opened a retirement investment account and plan to contribute $6,000 at the end of each…

A: Expected return is calculated by excel function RATE. For RATE function, future value FV is the…

Q: Ann invests $1000 today in an investment that has APR of 9.8% and is compounded monthly. How much…

A: 1) Future Value = Present value * (1+r)^n Where, r =rate of interest per period i.e. 9.8%/12 =…

Q: Art wants to know how much he'll have to invest today to receive an annuity of $8,000 for three…

A: The computation of amount of investment is as follows:The investment needed today is the present…

Q: Chris has saved $500,000 for retirement. If he set up a payout annuity for 30 years in an account…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a…

A: Here, Required Amount is $1,000,000 Time Period (n) is 20 years Interest Rate (r) is 9% Compounding…

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: Colin thinks he can reasonably expect to buy a house in five years. He would like to have…

A: Calculation of investment (P):Answer:The amount of investment that Colin has to invest annually is…

Q: He wants to deposit his savings into a bank account. How much does Jacob have to deposit now in the…

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Hannah wants to have $ 7500 to help pay for a new deck in 16 years. If she wants to put her money…

A: GIVEN, Future Value = $7500 Interest rate(r) = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

Q: Mr. Handsome would like to accumulate $1 million in his pension fund. If the annual interest rate is…

A: A study that proves that the future worth of the money is lower than its current value due to…

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: Enrique already knows that he will have $300,000 when he retires. If he sets up a payout annuity for…

A: Given: Present value = $300,000 Interest rate = 4.55% Year = 15 Interest compounded = Quarterly

Q: Andrew would like a retirement income of $3,000 per month (beginning of month payments) for 19 years…

A: Retirement income is $3000 per month Time period is 19 Years Interest rate is 3.6%

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: Student E saves his allowance worth of P 25,000 and promised to use it only when it reaches the…

A: Present value (PV) = P 25,000 Future value (FV) = P 45,000 Interest rate = 8% Quarterly interest…

Q: A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a…

A: Here, To Find: Future value of annual savings (FV) =? Annual withdrawals made for 20 years after…

Q: Tak wants to save $10 000 for a vacation. He deposits $150 at the end of each month for 4.5 years in…

A: Solved using Financial Calculator PMT = +/- 150 N = 4.5 years *12 months = 54 I/Y = 8.7/12 = 0.725…

Q: I am setting up a fund for my son to go to college. I figure that he will need Php50,000 by the time…

A: Future value (FV) = Php. 50,000 Annual interest rate = 5.75% Monthly interest rate (r) = 5.75%/12 =…

Q: Without using Excel and using the formula, Cheryl is setting up a payout annuity and wishes to…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Georgia McBeal is trying to save for her retirement. She believes she can earn 10% on average each…

A: Average return is the return which an investor earns from investing in an investment. Higher the…

Q: Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an…

A: Computation:

Q: Kobe is retiring in 19 years, and wants to save some money. He will make bi-weekly deposits of…

A: Bi-weekly Deposit = $513.38 Time Period = 19 Years Interest Rate = 2.750% compounded semi-annually

Q: Abel wants to determine the amount of money he would obtain from the interest of PHP 2,000 at 16%…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her…

A: Annual deposit (P) = RM 4,800 Annual interest rate (r) = 6% Number of annual deposits (n) = 15

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: Tony wants to have $10,000 in 10 years after investing in an account that earns 4.6% compounded…

A: Future value is $10,000 Time period is 10years Interest rate is 4.6% Compounded monthly To find:…

Q: John, a 25-year-old teacher, wants to start saving for his retirement. John wants a comfortable…

A: Given:

Q: Robin, who is self-employed, contributes $5000/year into a Keogh account. How much will he have in…

A: Given, PMT - $5000 Interest rate(I/Y) - 6.5% Compounded Yearly PV = 0 N = 20 FV = ?

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: John and Rosamond want to retire in 8 years and can save $230 every three months. They plan to…

A: In this problem we have to convert interest into quarterly interest and period into quarterly period…

Q: Kelvin has 45 years left until retirement and wants to retire with RM4 million. Assuming that his…

A: First we need to calculate he monthly payment to accumulate the amount required for retirement .…

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

Q: o save Php 2 750 at the end of every 6 months, which is the amount paid into her retirement plan by…

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

Q: Garth has $50,000 to invest for retirement, how much money will he have after 20 years if he buys a…

A: Calculation of amounted needed in future: Answer: Amount needed after 20 years is $246,340.14

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: Leonard wants to have $400,000 in his RRSP when he retires in 31 years. How much must he deposit at…

A: Here, Required Amount (FV) is $400,000 Time Period (n) is 31 years Interest Rate (r) is 4.8%…

Question

Jamie is saving ₱10,000 at the end of each month. How soon can he retire if he wants to have a retirement fund of ₱250,000.00 and interest is 4.36% compounded monthly?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

At the age of 35 John began contributing 10,500 Php every month to a retirement fund. If his money earns interest at a nominal annual rate of12%, compounded monthly, how long does he have to make these payments if he wants his retirement fund to be 450,000 Php in the end?
Chris has saved $500,000 for retirement. If he set up a payout annuity for 30 years in an account paying 10% annual interest, how much could the annuity provide each month?
Michael wants to have $57,000 in 11 years on a savings plan that requires monthly contributions. If he can earn 8 percent APR with monthly compounding on the savings plan, what is the amount that he will have to invest every month for the next 11 years? Round it to two decimal places
Kelvin has 45 years left until retirement and wants to retire with RM4 million. Assuming that his monthly salary is RM50,000, and he can earn an annual return of 9 percent on the money he invests monthly. If he saves a constant percentage of his salary, what percentage of his salary must he save each month?