Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a) Find the value of her investment after 20 years, assuming she started with a zero balance. b) Find the initial balance would she have had to start with, if she makes no monthly payments, but the account has the same amount of money as the answer to part (a).

Q: Samantha made regular, equal deposits into savings accounts at the end of every month for three…

A: Annuity is a no. of finite payments which are equal size and made in equal time periods. Person…

Q: Mary Kate and Ashley discover they have $40,000 from their Full House days that they haven't used.…

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

Q: How much should Elizabeth have in a savings account that is earning 4.50% compounded quarterly, if…

A: Given: Particulars Amount Amount(PMT) $1,550 Years 10 Interest rate 4.50%

Q: At retirement, Maria's saving account has $620,000 in it and is earning 1.2% compounded monthly.…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Betty wants to save $500,000 in four years. She wants to make monthly deposits into an account which…

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

Q: Hanna invests $8400 for 8 years and 10 months. The account earns 5% semiannually. What is n for the…

A: Basic Details: Investment = $8400 Time = 8 Years and 10 Months Interest = 5% semi Annually

Q: Maria saves ​$32 at the end of each week and deposits the money in an account paying 12%…

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

Q: Rachael invests $8000 for 7 years and 8 months. The account earns 12% semiannually. A) What is n…

A: Future value of present sum depends on whether it is simple interest or compounded…

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: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $150/month into…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $225/month into…

A: Calculation of Money in the Account in 7 Years:The money in the account in 7 years is…

Q: Kim Baker invested $250 at the end of every 3-month period, for 5 years, at 8% interest compounded…

A: If money has been deposited in an account at the beginning of every period for a specified duration…

Q: Susan plans to make an investment today which promises to return to her $3,000 each year for ten…

A: Using excel PV function

Q: Rocio invests $170.00 a month for 9 years into an account earning 6% compounded monthly. After 9…

A: As per the guidelines, in the case of two or more individual questions, the answer for the first one…

Q: Jean borrowed $3600 from the bank in order to buy a new piano. She will pay it off by equal payments…

A: Interest-  The monetary payment for the privilege of borrowing money is known as interest, and it is…

Q: Caroline invest $100 on the last day of each month into an account earning 8% interest, compounded…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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: Jeremy and Bill each have $57,043 to invest in a retirement account whose annual rate is 2.9% with…

A: As the compounding is monthly the effective rate = [1+(apr/12)]^12 - 1 = [1+(2.9%/12)]^12 - 1 =…

Q: Being cautious with money, Cyril has contributed $1,700 at the start of every month into an RRSP,…

A: value of investment in 10 years from now can be calculated using following function in excel. FV…

Q: Claire has a retirement account worth $975,000. The account draws 3.6% compounded monthly.  A. How…

A: Retirement account = $975,000 Interest rate = 3.6%  Compounded = Monthly

Q: Alicia has $350,000 saved for retirement in an account earning 3.2% interest, compounded quarterly.…

A: Present Value of Annuity = Annuity Amount * [ {1 / ( 1 + periodic interest rate ) } + {1 / ( 1 +…

Q: deem invested $800 in an account that pays 4.25% interest compounded annually. Assuming no deposits…

A: Future value of money includes the original deposit and compound interest on the money.

Q: naline wants to have 5000 dollars after 6 years in the account that draw a nominal interest of 7…

A: The future value of goes on increasing as there is more compounding over the period of time.

Q: Jovaira deposits ₱10,000 every 3 months in a time deposit account giving 7% interest rate compounded…

A: The amount at the end of 5 years can be computed with the help of future value of annuity

Q: Delores has an investment account (Account # 1) with a current balance of $160,000. Delores plans to…

A: The future value (FV) of a single sum represents its current worth plus interest thereon at a given…

Q: An engineering graduate starts a new job at $68,000 per year. Her investments are deposited at the…

A: future value of annuity formula: fva=pmt×1+rn-1r

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: The monthly deposit is $250. Interest per months is (9% ÷ 12) = 0.75%. The formula to calculate…

Q: Amy invested 5,300 pesos in an account that pays an annual interest rate of 3.4%, compounded daily.…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Suppose a young couple deposits $900 at the end of each quarter in an account that earns 6.2%,…

A: Given that  p= $ 900 deposited each quarter  r = 6.2% compounded quarterly after 9 years  p= $ 200…

Q: Mrs. Carter deposits P 100 in the bank at the end of each month. If the bank pays 6 % per year…

A: Monthly deposit (P) = P100 Interest rate = 6% e = 2.7182818284590452353602874713527 Monthly interest…

Q: Cristina invests $140.00 a quarter for 9 years into an account earning 9% compounded quarterly.…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: Rose, recently purchased a new automobile for $25,000. She made a $5,000 down payment and financed…

A: Using excel PMT function

Q: Todd and Lisa are saving $2000 at the end of every yearin an account that pays 6% interest. If there…

A: Hence, Present value of savings made for 10 years without any withdrawal is $14,720. The present…

Q: Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded…

A: The amount deposited each year = $1200 Interest Rate = 5% Compounded annually Years = 12 1st We need…

Q: Bria has $450,000 saved for retirement in an account earning 2.4% interest, compounded weekly. How…

A: Future Value:-It is the value of an investment at a future date based on the growth rate. It helps…

Q: how much will she have in her account after 11 years

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

Q: Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Q: Suppose Jennifer deposits $500 in an account at the end of this year. $400 at the end of the next…

A: We need to use compound interest formula to solve this problem A =P(1+i)n Where A= final payment…

Q: Gregory's investment manager offers her an interest rate of 9.00% compounded monthly on her…

A: From the given data in the question, we have understood the future value of an ordinary annuity is…

Q: To finance a vacation in 4 years, Elsie saves $450 at the beginning of every six months in an…

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

Q: Patricia French received $500,000 from aninsurance company after her husband’s death. Patricia wants…

A: Monthly payment: It can be defined as the payment made by the borrower on a monthly basis.

Q: Erica deposits $1,400 at the end of every 3 months in an RRSP that is earning 6.90% compounded…

A: Using excel NPER Function

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

A: According to the question, an individual wants 1,000,0000 AED in 10 years i.e. the amount of…

Q: Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a)find the…

A: Annuity refers to an investment which involves a series of regular payments for a certain period of…

Q: my cousin hershey is a newly public school teacher who plans for education of her future children.…

A: Annuities assume that money is put into the account on a regular schedule and money is left in the…

Q: At the start of every year Jane puts $100 into an investment that gets 5% interest at the end of the…

A: According to the requirement, question (b) is solved.

Q: Irene makes six annual deposits of $2,000 in a savings account that pays interest at a rate of 4%…

A: Annual deposit (PMT) = $2,000 Interest rate = 4% Number of periods = 6

Q: A woman deposits $12,000 at the end of each year for 15 years in an investment account with a…

A: The question is based on the concept for calculation of the future value by use of compounding…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.