Q: Ms. Cristiana Piccini is valuing an investment that pays her $27,000 per year for the first ten…
A: Calculation of Value of Investment: Excel Spreadsheet:
Q: Sara met with a financial planner and has determined that she will need $1,250,000 when she retires…
A: Required Amount (FV) is $1,250,000 Time to Retire is 30 years Time to Start saving is after 20 years…
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: If you are offered 300,000 in 14 years and you can earn 16% on your money what is the present value…
A: To calculate the present value we will use the below formula Present value = FV/(1+r)n Where FV -…
Q: What amount of money invested today at 15% interest can provide the following scholarships: ₱30,000…
A: Interest rate = 15% Annual cash flow in first 6 years = P30,000 Annual cash flow in next 6 years =…
Q: Steve Madison needs $250,000 in 10 years. How much must he invest at the end of each year, at 5%…
A: Annuity amount = Futur value of annuity amount / {[(1+r)^n-1] /r}
Q: Skeng would like to receive equal instalment of $250,000 at the end of each year for the next 8…
A: FORMULA PVA = P*[1-(1+R)-N]/R Where PVA - Present value of annuity P - Annual payment amount i.e.…
Q: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…
A: Future value is the expected value of current sum in a future date at a given rate of return. Given:…
Q: what amount of money invested today at 10% interest can provide the following scholarships: 34,000…
A: The question is based on the concept of Financial Management.
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: Ms. Cruz can buy a piece of property for ₱6,500,000 cash or ₱4,000,000 down payment and ₱4,200,000…
A: In this question, we have to analyze the two option of buying the property one is cash basis and…
Q: if you owe $35,000 payable at the end of eight years, what amount should your creditor accept in…
A: Amount due after 8 Years (FV) = $ 35000 Interest rate (r) = 13% Period (n) = 8 Years
Q: If a donation of $100,000 is expected to pay out scholarships of $10,000 every year and the funds…
A: Here, to calculate time period we have to use the compound interest formula . A = P 1+r100n…
Q: If money is worth 9.73% annually, what annual payment is required to raise ₱ 15,434 after 4 years?
A: It can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv], [type]) Rate The…
Q: I invest 33,996 today and expect a reimbursement every 6 months with a ROR of 0.1 compounded…
A: solution given Present value of investment 33996 Rate of interest 10% Semiannual…
Q: You intend to make the annual maximum contribution of $6,000 to your Roth IRA (individual retirement…
A: Maximum Contribution per Year(PMT) is $6000 Time Period(NPER) is 30 years Rate is 10 years To…
Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…
A: Future value of a present value is the value of that amount after taking into account the time value…
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: You want to receive $8,000 per month in retirement. If you can earn 0.6% return per month and you…
A: You want to receive $8,000 per month in retirement. If you can earn 0.6% return per month and you…
Q: An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the…
A: Money discounting is the process of determining the present value of future cash flows. The interest…
Q: An annuity that pays out 30,000 a year for 20 years (paid at the beginning of each year) and b.…
A: In this question one needs to find the payment per month. But before doing that one needs to…
Q: How much does your client need to contribute to a fund each month for the next 25 years (first…
A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…
Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he…
A: Future value required (FV) = Php1,000,000 Interest rate = 12% Monthly interest rate (r) = 12%/12 =…
Q: Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today.…
A: GIVEN, PV0= $10,000 PV1= $15,000 PV4= $25,000 R= 9.6% N = 30
Q: If you are offered 300,000 in 13 years and you can earn 11% on your money what is the present value…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…
A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…
Q: Debra Moore needs $20,000 3 years from now. How much should she invest today in order to reach her…
A: Answer : Future value = $20,000 Interest rate = 6% n = 3 Years Calculation of Present value :…
Q: Assume that you are 30 years old today (t=0), and that you plan to retire at age of 65 (t=35). Your…
A: An annuity is a series of payments with a fixed number of instalments of the same quantity and made…
Q: one ecided that you will give Bob $15,000 per yE year for each of his last two years of colleE f…
A: First, We need to compute the total amount required when BOB leaves for school. This can be computed…
Q: Terry Austin is 30 years old and is saving for her retirement. She is planning on making 36…
A: Retirement Contribution:- When Employees after completion of their work tenure, receive benefits…
Q: , how much accumulated savings and investments would you need/
A: Present Value It is the current value of the future sum of money or future cash flows, discounted at…
Q: 18)Terry Austin is 30 years old and is saving for her retirement. She is planning on making 36…
A: The future value of the annuity due is the future worth of a cash flow series starting at the…
Q: NEED HELP ASAP! An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the…
A: Present value refers to the current value of a sum of money in the future at a specified interest…
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: Suppose that you just turned 25, plan to retire at 65, and estimate that you will need $9,049 per…
A: Annuity means no. of finite payments which are same in size and made in equal intervals. Person gets…
Q: A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: Carlo Aldric wants to have P40,000 per year for 15 years during his retirement. What amount would…
A: Annual amount (P) = 40,000 Interest rate (r) = 5% Period (n) = 15 Years
Q: Debra Moore needs $20,000 3 years from now. How much should she invest today in order to reach her…
A: Here we can use Present value formula to find investment today
Q: A family want to have a $241,000.00 higher education fund for their children at the end of 22 years.…
A: The calculation is:
If my balance is $85,000 and I contribute $25,000 p.a for the next 35 years earning a rate of 5%, what will be my final balance?
Step by step
Solved in 2 steps
- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each of the next 5 years, then an additional lump sum payment of $12,000 at the end of the 5thyear. What is the expected rate of return on this investment?
- If you need $100,000 at the beginning of each year during your 18 years of returement and you can earn 6% annually during that time. What would you need to contribute at the end of each month for your 43 working years if during that time it can earn 10.8% annually?If Kirk deposited $1200 annually and it earns 4.37%, how much will accumulate in 9 yearsI wish to have $2,000,000 when I retire in 30 years time. What is the monthly contribution I need to make assuming I can earn 8% p.a. compounding monthly and the first cash flow is in one month's time? Select one: a. $1,236.75 b. $5,555.56 c. $1,431.69 d. $1,341.96
- Lee wants to receive $18,000 each year for the next 20 years. Assume a 4% rate compounded annually. How much must Lee invest today?At the end of this year, you intent to contribute $5000 to your retirement account. You are committed to increasing your contribution by 2% each year. If you can earn a 6% average annual return in your savings account, how much money will you have in your account after you make 45 contributions?If you plan to make an initial contribution of $6,000 to a retirement account in 5 years and you will make annual contributions of $6,000 thereafter, after how many contributions will your balance have reached at least $900,000 if your account earns 5.5% annual interest
- Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?You decide to invest in an instrument that pays 5% annual capitalizable interest each semester. If you want to get an amount of $1,000,000 at the end of 20 years, giving contributions at the end of each month, how much does each monthly contribution have to be to reach the goal?A mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees’ salaries over the next 5 years. Let i = 12% per year.
