Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If Bobbi earns 12% per year on that account, how much will she have accumulated at the end of the 50 years?

Q: Alex and Tony are twins. After graduation and being finally able to get a good job, they plan for…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: How much money will there be in the account?

A: solution A= R(1+i)n+1/i R= Contribution half year=$425 n= number of periods=48 years - 33 years =15…

Q: (i) Determine how much will his daughter be able to withdraw each year starting in year 18 and…

A: In step 1, calculate the amount that is saved till year 17 .i.e the future value of the annuity of…

Q: At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If…

A: In finance, a trust is considered as an arrangement between a third party, a trustee, and the…

Q: how much will John have in his retirement account at age 60?

A: Present age is 25 Rate of return = 8% Retirement age = 60

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: i. Given Annuity=400,000 Interest rate=10% p.a. No. of years=5 FVAn=A1+rn-1r where FVAn=Future…

Q: Twenty years ahead of her retirement, Kelly opened a savings account that earns 5% interest rate…

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

Q: A person joins a pension plan at age 35. How much will she have to pay into the pension fund each…

A: The question is based on the concept of Annuity in Financial Management.

Q: Gary decides to set up a retirement fund by depositing $182 at the end of each week for 17 years.…

A: Calculation of Amount at the end of 17 years:To calculate the amount at the end of 17 years, the…

Q: Marilyn wishes to retire at age 65 with $2,000,000 in the bank. At the age 21, she decides to begin…

A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

Q: Magnus wishes to have $1,500,00 when he retires in 44 years. What are the monthly payments he must…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = 150000 n = 44 r…

Q: Crystal Nelson is 30 years old and she invests $3,300 in an annuity, earning a 8% compound annual…

A: PV = 0 N = 21 rate = 8% PMT = 3300 use FV function in Excel with type as 1

Q: Jack and Jill decide each invest $5,000 in the same stock this year. However, Jack invests directly,…

A: Investment is done in various instruments to earn a return in order to have a higher amount in the…

Q: Michelle is 25 years old and has decided to start a retirement program. Beginning in exactly one…

A: Time period is 30 years Annual savings are $15,000  Interest rate is 4% To Find: Amount saved for…

Q: Lynn estimates that when she retires at age 60, she will have $165,766.18 in her retirement account.…

A: Amount at the time of retirement = $ 165766.18 Expected Life as per Lynn = (85-60) + 3 = 28 Years…

Q: 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average eaming…

A: Given, A=$9900 r=11% n=40 years

Q: Marryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Stephanie purchased an annuity that will provide her with payments of $1,500 every month for 4…

A: monthly rate of interest = (1 + 4.25%/2)1/6 - 1 = 0.3511%

Q: Jenna owns a jewelry business, and she plans to save $500 every month for 3 years to buy precious…

A: Using Excel

Q: Maria wishes to accumulate $8,000 by the end of 5 years by making equal, annual, end-of-year…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: jesse recieved $5,000 from his grandmother when he turned 18. if he invests it at 5.5%(12), how much…

A: The question gives the following information:

Q: Ed who was then 26 years old planned to retire at the age of 56 years and so he purchased an…

A: Let the annual amount of annuity = A Annuity payments (n) = 30 Annual income from 56th birthday = P…

Q: After retiring, Valeria wants to be able to withdraw $36,500.00 every year from her account for 27…

A: Amount to withdraw every year "PMT"  is $36,500 Time period "N" is 27 years Interest rate "I/Y" is…

Q: EZ Leifer plans to retire at the age of 65 and believes he will live to be 90.  EZ wants to receive…

A: Present value of annuity due = P + [P * {1-[1/(1+r)^n]/r}] Where, n = 90 years - 65 years =25years P…

Q: Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded…

A: Formula Future value = PV*(1+i)n Where PV - Investment i.e. $20,000 i - Semi annual interest rate…

Q: Shelby purchases a retirement annuity that will pay her $3,000 at the end of every six months for…

A: Present value of the money would be price that maximum price that can be paid for that kind of…

Q: Kate is 28 years old today and is beginning to plan for her retirement . She wants to set aside an…

A: Computation:

Q: Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this…

A: In  the given question we require to compute the amount mary will have in account at the end of…

Q: A father is investing 1000 ₺ , every 6 months into a life insurance account for his son. According…

A: Using Future value function in excel

Q: Frank buys a house at age 48 for $600,000 by making a $170,000 down payment and securing a 30-year…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: On Juan’s 26th birthday, he invested $7,500 in a retirement account. Each year thereafter he…

A: Rate of interest=5%,0.05               Time=35 Number of years=10Amount=Principal1+rateyears…

Q: Alexandra is 30 years old today, and she is planning to retire at age 65. Her current salary is…

A: The payment for retirement funds is 10% of income but because the income is increasing by 5%, the…

Q: At the time of her grandson's birth, a grandmother deposits $4000 in an account that pays 4.5%…

A: The value of an account is defined as the total worth of the account for holdings. Cash value is…

Q: at the end of year for 18 years.

A: Given information : Particulars Alex Tony Periodic deposits 10000 20000 Time period (years)…

Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…

A: The future value function can be used for determining the future value of a present sum, or the…

Q: Elif received a bonus of $100,000 at the age of 30 and she decides to invest this money to a savings…

A: The nper function or concept can be used to determine the number of years or time required to…

Q: Debbie invests $5,500 in her IRA account each year for 40 years.  If she earns 7% return annually on…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Eugene began to save for his retirement at age 35, and for 15 years he put $ 325 per month into an…

A: $

Q: s

A: Given  n =30 i =11%   Now Find the value of his account when he is 60 years old.

Q: Gary decides to set up a retirement fund by depositing $300 at the end of each week for 29 years.…

A: Payment frequency is weekly. However, the interest rate is 2.11%, compounded semiannually. Hence we…

Q: Marites, a self-employed individual, is opening a retirement account at a bank. Her goal is to…

A: First deposit (F) = A1 Accumulated amount needed = Php 1000000 Number of deposits (n) = 20 Growth…

Q: Lisa plans to retire on her 61st birthday. On her 22nd birthday, Lisa will start saving $A per year…

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

Q: Leon and Heidi decided to invest $3,000 annually for only the first eight years of their marriage.…

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

Q: Patty Stacey deposits $2000 at the end of each of 5 years in an IRA. If she leaves the money that…

A: If a person is depositing payments to the accounts on a regular basis then, the future value is…

Q: Allison is 31years old and plans to retire at age 65 with $920,000 in her retirement account. What…

A: The amount required to deposit today can be calculated with the help of present value function.