You choose to invest $2,985 income tax refund check (rather than spend it) in an account earning 5% compounded annually. How much will the account be worth in 30 years?

Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…

A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate

Q: ndmded Suppose you are paid $3,000 per month and your employer's 401(k) matches your contrībutions…

A: The 401(k) retirement plan: The 401 (k) plan is a plan that encourages salary earners to save for…

Q: You would like to have ​$   59,000 in   15 years.  To accumulate this​ amount, you plan to…

A: The concept of time value of money tells us that worth of money keeps on changing with passage of…

Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Given: PV = Present value = $42,180.53 PMT = Annual payment = $5,000 Future value value = $250,000…

Q: You plan to invest $1,200 at the end of year 1, $2,000 at the end of year 2, and $3,700 at the end…

A: Given data; Amount deposited at the end of year 1 = $1200 Amount deposited at the end of year 2 = $…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: You would like to have $600,000 when you retire in 40 years. How much should you invest each quarter…

A: Here, To Find: Part a). Amount of deposit each quarter =? Part b). Total money deposited into the…

Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: The future value of annuity helps an investor or an individual to know the future value of their…

Q: You want to have 5 million when you retired in 40 years. You believe you can earn 9 percent per year…

A: The formula to calculate the amount to be invested each year is given below:

Q: you are paying into an investment account that pays 8% compounded annually. If you are making…

A: In the given question we require to calculate the future value from the following details: 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: Suppose you are paid $2,000 per month and your employer's 40100 matches your contributions by 10% up…

A: Here, Monthly Pay is $2,000 Maximum Contribution in 401K is 15% of Monthly pay Period of working is…

Q: Suppose you want to have $300,000 in the bank when you retire in 45 years and the bank pays 3%…

A: given, rate = 3% no of years= 45 FV= 300,000

Q: 1. Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50%…

A: The question is based on the calculation of future value of deposit  made in retirement account…

Q: An individual earns an extra $2000 each year and places this money at the end of each year into an…

A: When any regular payment is made like paying rent for the apartment or interest on the bond is…

Q: You invest $10,000 in an account which pays 3% compounded monthly. How much is in the account after…

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

Q: You just received your tax refund of $10,000.00 and you invest it in an annuity that pays 6.6%,…

A: Here, tax refund of 10,000 was invested in the annuity due at 6.6% for 1 year. Here, compounding…

Q: You deposit $2000 each year into an account earning 3% interest compounded annually. How much will…

A: A deposit annually  is rewarded by an interest  annually that make a huge amount at the end of…

Q: You are saving money for a down payment on a new house. You intend to place $5,000 at the end of…

A: The amount at the end of the fifth year is the future value of the payments. The future value is the…

Q: year by making the retirement fund contributions? le 12-1, much will the retirement fund be worth…

A: Annual contribution=$5500 Annual interest =6% Federal tax rate =28% Tax on mutual funds =17% Future…

Q: An individual wants to have 1,000,000 AED in 10 years. Suppose she will pay no taxes at the end of…

A: To calculate the present value , the future value need to be discounted using the discount rate.…

Q: You choose to invest your $3,435 income tax refund check (rather than spend it) in an account…

A: Investment (PV) = $3,435 Interest rate (r) = 6% Period (t) = 30 Years

Q: Your client's 401K account has an initial balance of $6,900 and has monthly contributions of $500.…

A: Future value is the value of an asset in the future. Future value estimation is very important for a…

Q: An individual earns an extra $2000 each year and places this money at the end of each year into an…

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

Q: You would like to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Future Value= $59,000; No. of periods= 5*4= 20 years, Interest rate per period = 4.24/4=…

Q: You would like to have $550,000 when you retire in 40 years. How much should you invest each quarter…

A: Required Amount at retirement is $550,000 Time period is 40 years Interest rate is 6.4% Compounded…

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

A: Present value (PV) is the current value of future money or cash flows at a specified rate of return.…

Q: You deposit $1000 each year into an account earning 4% interest compounded annually. How much will…

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

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: You choose to invest your $3,110 income tax refund check (rather than spend it!) in an account…

A: Future Value(FV) is worth of current amount at future time that is computed by compounding that…

Q: A retiree invests $8,000 in a savings plan that pays 6% per year. What will the account balance be…

A: The future value of money is considered as the sum of money received after a period of time at a…

Q: How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly?  How…

A: To find the payment per quarter one can use “ pmt function “ in excel. To find the total money we…

Q: Your beginning salary is $70,000. You deposit 12% at the end of each year in a savings account that…

A: Given information: Beginning salary is $70,000 Interest rate is 3% Initial payment of 12% Salary…

Q: Your friend made an investment of P 45,000 for 2 months at 15% simple interest. If withholding tax…

A: Simple interest = Amount x Rate x Time =  P45,000 x 15% x 2 months12 months = P1,125

Q: You deposit $3000 each year into an account earning 2% interest compounded annually. How much will…

A: Annual deposit (P) = $ 3000 Annual interest rate(R) = 2% Period (N) = 35 Years

Q: A small business owner contributes $2,000 at the end of each quarter to a retirement account that…

A: Order annuity refers to the insurance contracts that promises to pay the regular income of a…

Q: You choose to invest your $3,410 income tax refund check (rather than spend it!) in an account…

A: Given, P = $3410 r = 5% n = 30 years

Q: An individual contributes $200 per month to a 401(k) retirement account. The account earns interest…

A: Monthly Contribution $200 Annual Interest Rate 8% Period  35 Years Because of Compounding…

Q: A.) A man has deposited $50 000 in a retirement income plan with a local bank. This bank pays 9% per…

A: The requirement is to find the annual withdrawal. This amount will be the same for all 12 years. The…

Q: Brianca plans to save $5,000, $1,000, and $42,000 a year over the next three years, respectively.…

A: Time value It tells that value received today has more value than that of receiving the same amount…

Q: small business owner contributes $2,000 at the end of each quarter to a retirement account that…

A: Information Provided: Amount to be contributed = $2000 Interest = 10% compounded quarterly

Q: You would like to have ​$53,000 in 13 years. To accumulate this​ amount, you plan to deposit an…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: You want to be able to withdraw $30,000 each year for 25 years. Your account earns 8% interest…

A: Given: Yearly withdrawal (d) =$30,000 Rate of interest (r)= 8% = 0.08 Compounding frequency (k) = 1…

Q: A small business owner contributes $3,000 at the end of each quarter to a retirement account that…

A: Given information: Quarterly payment $3,000 Interest rate 10% compounded quarterly Future value is…

Q: 35 years

A: SOLUTION:- General formula for future value when interest is compounded annually is FV=P(1+r)n…