find the final amount in this retirement account, in which the rate of return on the account and the regular contribution change over time 1500$ per quarter invested at 7.9% compound quarterly , for 20 years, then 1000$ per quarter invested at 6.8% compund quarterly for 10 years. answer is about 620,187$
Q: Find, per year before AND after tax return for an investment of 15,000 that runs for a twenty five…
A: Tax rates depend on the nature of investment whether equity or debt. Further, interest earned on…
Q: pounded quar
A: We need to find the amount of money that must be invested to accumulate P200,000 in 3 years and 3…
Q: Find future value of a 5 year $100,000 investment that pays 8.75% and that has the following…
A: Excel Spreadsheet: Excel Workings:
Q: Find the final amount in the following retirement account, in which the rate of return on the…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Determine the principal P that must be invested at rate r = 3%, compounded monthly, so that $700,000…
A: Future value (FV) = $700,000 Interest rate = 3.50% Monthly interest rate (r) = 3.50%/12 =…
Q: A perpetuity with a present value of $25,000 today yields cash flows of $100 per month. The first…
A: Perpetuity involves receiving cash flow for an infinite period of time. Perpetuity calculation can…
Q: Find the final amount in the following retirement account, in which the rate of return on the…
A: An annuity is the sum of annual equal payments over the period of time at a certain date, at a…
Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?…
A: Return can be calculated as: Return = Closing Value - Opening ValueOpening Value Substituting the…
Q: The present value of an annuity is 16,950. Quarterly payments of 369 are made from16,950 that is…
A: Present value (PV) = 16950 Quarterly payment (P) = 369 Annual interest rate = 4% Quarterly interest…
Q: You plan to prepare for retirement by making monthly contributions $1,500 to a savings account that…
A: Accumulated savings is defined as the savings, which amount for putting the back or investment each…
Q: What annual rate of return is earned on a $5,000 investment when it grows to $9,000 in five years?…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: You have accumulated $1,793,836 for your retirement. How much money can you withdraw for the next 14…
A: Given that:Accumulated amount=$1793836Years=14Rate=9.90 % per year(Compounded annually)
Q: Use this chart to answer the following questions. Assume in every case that you make annual…
A: Base case contribution (A) = $3000 n = 25 years r = 7.5% per annum
Q: . A lump sum of $30,000 is invested at 6% compounded monthly for 15 years. For 15 years it then pays…
A: Present Value = $30,000 Interest Rate = 6% compounded Monthly Time Period = 15 Years
Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…
A: Future Value = Present Value * (1+r)^n Where, r = rate of interest per period i.e. 5.40%/12 = 0.45%…
Q: How much must be invested at the beginning of each year at 11%, compounded annually, to pay off a…
A: The problem relates to ANNUITY DUE. Annuity due is an annuity whose payment is due immediately at…
Q: How long will it take an RESP to grow to $200,000, if the plan owner contributes $250 at the end of…
A: The payment flow which continues for a definite time period and terminates after lapse of time…
Q: Find the final amount in the following retirement account, in which the rate of return on the…
A: The future value function or concept can be used to determine the future value of a present sum, or…
Q: Find the present value of the following annuities: 1. 100 at time 1 and increasing by 100 annually…
A: 1. Computation of present value of annuity Year…
Q: Find the value of a retiroment savings account paying an APR of 58% after 30 yoars (contributions…
A: The value of the retirement savings account at the end can be calculated using the following…
Q: Answer the following questions using Excel's RATE, NPER, PMT, PV and FV functions. 2. What sum of…
A: The investment amount is the present value of the monthly payments.
Q: Find the lump sum deposted today that will yeld the same total amount as payments of $13.000 at the…
A: Present Value of Annuity: With respect to annuities, the present value of a contract is the current…
Q: Calculate the dollar amount that would be in a savings account at the end of 5 years, given an…
A: Initial investment (P) = 701 dollars Rate of interest (i) = 2.76% (Compounded monthly) Time period…
Q: Find the final amount in this retirement account, in which the rate of return on the account and the…
A: We can calculate the retirement amount with the help of following formulae: =FV (RATE, NPER,PMT)…
Q: Calculate the initial amount that would be in a savings account at the beginning of 6 years, given a…
A: Given Interest rate = 3.14% Number of years = 6 Years Final amount received = 256 Future value is…
Q: Find the lump sum deposited today that will yield the same total amount as payments of $15,000 at…
A: Answer - Formula for Lump Sum deposited Today - P = R ( 1 - (1+i)-n/ i)
Q: Determine the present worth of perpetual expenses that will sustain the replacement cost of…
A: Present worth or present value is defined as the amount of money which required to be invested for…
Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. $2,300 per…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the…
A: Compounding refers to the process where the interest is determined on the principal and interest…
Q: Find the final amount in the following retirement account, in which the rate of return on the…
A: We will treat this as 2 annuities and find their future values separately and then add at the end to…
Q: Find the present value of the following annuities: 100 starting at time 8 and increasing by 100…
A: Present value of a future amount With future value (FV), periodic interest rate (r) and period (n),…
Q: If $650 000 is saved for retirement, what rate of interest, compounded monthly, will provide…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: Find the present value PV of the annuity account necessary to fund the withdrawal given
A: Present value (PV) is the value of future’s money at today’s date. PV of annuity refers to the…
Q: . Annuities Find the 10-year future value of anordinary annuity with a contribution of $300…
A: Introduction: Future value of an annuity can be defined as calculating the value of series of…
Q: What is the equal payment series for 12 yearsthat is equivalent to a payment series of $25,000 atthe…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: A payment of $11,710 is due in 1 year, $19,500 is due in 4 years, and $8,400 is due in 6 years. What…
A: The screenshot of the above sheet along with formulas is given below for your reference. The Single…
Q: Determine the principal P that must be invested at rate r = 2%, compounded monthly, so that $500,000…
A:
Q: Fill in the table below when P= $9,000, S= $3,000 (at the end of four years), and i 12% per year.…
A: Here, P or Investment is $9,000 S or Salvage Value is $3,000 Time Period is 4 years MARR or i is…
Q: If P 1,000 is saved for a year at a rate of 10% interest compounded quarterly, calculate the…
A: The interest on a mortgage or bank that is calculated based on both the initial principle and the…
Q: Find the value of a retirement savings account with an annual contribution of $1700(contributions…
A: future value of annuity (FVA) formula: FVA=A×1+rn-1r where, A=annuity r=rate n=number of years
Q: Determine the principal P that must be invested at rate r = 2%, compounded monthly, so that $500,000…
A: using the PV function in excel
Q: Retirement assets total $4,861,000. Assume its invested for another 24 years and that assumes an…
A: Retirement assets = $4861000 Invested for years = 24 years Annual inflation rate = 4.4% Maintain…
Q: Find the present value of an annuity due that pays $2000 at the beginning of each quarter for the…
A: The quarterly amount is $2,000. The annual interest rate is 6.6%, compounded quarterly, So, interest…
Q: What is the equal payment series for 8 years that is equivalent to a payment series of $15,000 at…
A: Given information: Payment series: $15,000 Increasing amount: $1,500 Period: 10 years Interest…
Q: You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years…
A: A study that proves that the 1value of money today is higher than the future value of money is term…
Q: Determine how much is in each account on the basis of the indicated compounding after the specified…
A: As per the guidelines we are allowed to solve the first three parts only The account value can be…
find the final amount in this retirement account, in which the
1500$ per quarter invested at 7.9% compound quarterly , for 20 years, then 1000$ per quarter invested at 6.8% compund quarterly for 10 years.
answer is about 620,187$
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. CompoundAmount Term ofInvestment NominalRate (%) InterestCompounded PresentValue CompoundInterest $28,500 18 months 4 semiannually $ $PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS1.- Now find the future or final value (FV) at compound interest of the amounts expressed in each item, taking into account the compound interest rate and its respective compounding period. Indicate separately the total amount of interest and the effective rate. a)$299,105 at 9.75% compounded quarterly for 16 years.b)$320,000 at 8.45% compounded monthly over 15 years.c)$1'909,900 at 8½% compounded semiannually over 13 years.d)$838,750 at 7½% compounded monthly over 10 years. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel. TO CONSIDER THE YEAR AS 360 DAYS (WHICH IS COMMERCIAL) (only if required)Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Principal NominalRate (%) InterestCompounded Compound InterestEarned in 1 Year Annual PercentageYield (APY) $6,000 12 semiannually $ %
- 3.- WHAT INTEREST WILL PRODUCE A CAPITAL OF $25,000 AT 16.169% SEMI-ANNUAL IN 4 YEARSA) S 60323.8B) $62,000C) OTHERD) $60525.5Determine the future value of the following single amounts: Invested Amount Interest Rate No. of Periods1. $ 15,000 6% 122. 20,000 8 103. 30,000 12 204. 50,000 4 12Repost could you please complete the sub parts D and E please Payment and frequency (PMT) Time in years (n) Interest rate and compound frequency (I/Y) Present Value (PV) Future Value (FV) $500.00 per quarter (end) 5 years 5% compounded quarterly ______________ Not Applicable $241.63 per month (end) 69 payments 6 ¾ % compounded monthly Not Applicable _______________ $____________ per quarter 7 years and 3 months 3 % compounded semi-annually $8,000.00 Not Applicable $445.30 per month __________years 7.45 % compounded quarterly Not Applicable $24,788.40 $2,000 beginning of every six months 12 ½ years _______compounded quarterly $46,000 Not Applicable
- An amortization of a debt is in a form of a gradient series of P10,000 on the first year, P9,500 on the second year, P9,000 on the third year, P8,500 on the fourth year. Determine the future amount of the amortization if interest is 0.12.A company's investments earn LIBOR minus 0.5%. Explain how it can use the quotes in Table to convert the investments to (a) 3-year, (b) 5-year, and (c) 10-year fixed-rate investments.Assume you have the following asset and liability in your Balance Sheet:Asset - Bond AModified Duration = 2.6 yearsValue= RM1.5 millionAAFARLiability - Bond BModified Duration = 3.1 yearsValue= RM1.0 milliona. Calculate the duration gap. b. What is the expected change in Net Worth if interest increases by 1%?attachment. calculation step by step
- correct answer are PV= 2,276.55 and A = 4,724.73 No tables, only formulas, please Find the present value and the accumulation at the end of 10 years of a series of payments that are made up by: £200 annually in arrears during the first 3 years, £35 monthly in arrears thereafter, given that the following interest rates apply: 9% per annum effective for the first 5 years, 6% per annum nominal convertible monthly thereafter.Q3): Fill in the entire chart for the below annuities by filling in all the blanks. Solve only (d),(e),(f) part # Payment and frequency (PMT) Time in years (n) Interest rate and compound frequency (I/Y) Present Value (PV) Future Value (FV) a. $5,682.04 per quarter (end) 5 years 5% compounded quarterly ______________ Not Applicable b. $241.63 per month (end) 69 payments 6 ¼ % compounded monthly Not Applicable _______________ c. $____________ per quarter 7 years and 3 months 3 % compounded semi-annually $7,795.89 Not Applicable d. $445.30 per month __________years 7.45 % compounded quarterly Not Applicable $24,788.40 e. $2,000 beginning of every six months 12 ½ years _______compounded quarterly $37,708.30 Not Applicable f. $2,789.58 beginning of every 3 months 60 months 2.75% compounded quarterly Not Applicable…Over one year, future value or cash flow (CF), present value (PV), and the rate of interest (i) are related as follows Select one: a. PV = CF (1 + i). b. CF = PV/(1+i). c. CF + PV = 1/(1+i). d. CF/PV = (1+i).