hat do you think the future worth of her investment will be? b. How much interest will she earn?
Q: Bing gave $800 to her cousin. As a token of gratitude, her cousin gave her $1, 520 at the end of the…
A: Details given are : Present value = $800 Future value = $1520 Time period = 1 year From above…
Q: A civil engineer planning for her retirement places 8% of her salary each year into a…
A: To calculate the future worth we will use the future value of growing annuity formula as follows:…
Q: Alicia is considering two offers-to-purchase that she has received on a residential building lot she…
A: The criteria of deciding the better payment offer will be judged on the basis of present value which…
Q: A woman has $216,000 to invest and wants to generate $12,000 per year in interest income. She can…
A: Investment = 216000 Interest Income per year = 12000 Rate on first fund = 4.5% Rate on second fund…
Q: Paolo is considering purchasing a Sunlife Capital investment. Paolo will receive P1,000 every three…
A: Maximum amount Paolo is willing to pay is present value of all future cash flows discounted at…
Q: Madison is thinking of buying an investment from PEP. If she purchases the investment, Madison will…
A: The present value of the annuity due is the current worth of a cash flow series received/paid at the…
Q: b) Assume a 10-year, $1,000 par value bond with a 10 percent annual coupon if its required rate of…
A: Bond valuation is the technique to measure the fair value of a bond on the basis of all the…
Q: Jerry intends to use the money from his loan (and his personal savings if necessary) to make an…
A: Effective rate of return is the actual interest rate received or paid by the depositor or borrower…
Q: Angela has a trust fund that will mature in three years with a value of $15,000. If this trust fund…
A: solution Given Future value $15,000 Period (n) 3 years Interest rate (r) 5%…
Q: John and Marsha are in an argument about an investment which requires a selies If an investor…
A: The Future Value: The Future Value is the value of an investment, which might either be a lump sum…
Q: Hashim wants to invest an amount of OMR. 9500 every year to buy a house at the end of 12 years. For…
A: GIVEN, Annuity = OMR 9500 No of years = 12 years
Q: Palma wants to establish a fund for her granddaughter's college education. What lump sum must she…
A: Computation:
Q: How much of their annual income do you recommend the Martins hold in some form of liquid savings as…
A: Ideally One should save, should invest and should hold in liquid assets. All these contribute to a…
Q: How much money should Prisha invest today in a fund that earns interest at 4.02% compounded…
A: Here, Semi Annual Payment (PMT) is $7,750 Interest Rate (r) is 4.02% Compounding Period (m) is…
Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…
A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
Q: The parents of a newborn have decided to make deposits into an investment account on each of their…
A: Formula Present value = P*[1-(1+g)n*(1+r)-n]/(r-g) Where P - First payment i.e. $2500 g - Annual…
Q: Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If…
A: CD stands for certificate of deposit. In this instrument, a customer can deposit money in a bank and…
Q: Mohammed estimate that he will need RO 10,000 in 5 years to fund his university education. How much…
A: Compound interest is referred as the in interest calculated on principal along with all accumulated…
Q: Justine is thinking about purchasing an investment from RCBC Capital. If she buys the investment,…
A: Receipts = 1000 every quarter for 2 years Beginning of period payments Time Period = 2 years * 4 = 8…
Q: John needs to invest to help with his child's college fund. How much would he have to invest to have…
A: Given: Amount = $67,300 Years =13 Interest rate = 2.17%
Q: Donald will receive $450,000 from his trust fund in 20 years from today. He assumes he could get a…
A:
Q: William Jack and Sophia Rose are planning on their first child education. If they expect that…
A: College cost after 18 years = RM 150000 Number of deposits (n) = 18 r = 6% Let the annual deposit =…
Q: esslyn has just given an insurance company RM1 million, a sum of money she just received from her…
A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…
Q: Elena wanted to invest in a trust fund. She borrows from a credit corporation that charges 8% simple…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
Q: Your newborn daughter has received a total of 8,000 in cash from various friends and relatives. If…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Fatema wants to invest an amount of OMR. 2000 every year to go on vacations with her husband at the…
A: Annual Amount invested =OMR 2000 Years (n) = 5 Interest Rate(r1) = 7.85% = 0.0785 Interest rate(r2)…
Q: o prepare for his son's college education, a man plans to make monthly deposits of Php2000 for…
A: Monthly deposit (P) = Php. 2000 Number of monthly deposits (n) = 60 Interest rate = 12% Monthly…
Q: Are annuities good investments? To answer this question, consider the situation of John. He is 50…
A: ROR is the rate at which the investor will earn the profit or incur loss on the investment. It…
Q: Mr. and Mrs. Maglalang decide to set aside ₱ 500,000 today and place it on a bank savings account…
A: Assuming college debut happens in 18th year, Duration of the fund (n) = 18 years = 72 quarters r =…
Q: Heather needs to invest to help with her child's college fund. How much would she have to invest to…
A: Money’s value declines with the time. Discounting is a way which is used to get the PV of future…
Q: I am setting up a fund for my son to go to college. I figure that he will need Php50,000 by the time…
A: Future value (FV) = Php. 50,000 Annual interest rate = 5.75% Monthly interest rate (r) = 5.75%/12 =…
Q: Jana, now 23 years old, is a grade school teacher in Batangas City. She has been invited by her high…
A: A deposit or payment of equal amount of money at equal intervals of time is called annuity.…
Q: Ms. Pan Aram has set the goal of accumulating Php 4,000,000 for her son's college fund, which will…
A: Here, Future value of deposited amount = Php 4,000,000 Number of years = 18 years Interest rate = 8%…
Q: 2. If Wendy wants to invest her Php25,000, how many years will it take for her savings to accumulate…
A: Simple interest is a fixed proportion of the principal amount borrowed or lent that is paid or…
Q: Jane has been given an opportunity to receive 20,000, six years from now. If she can earn 10% on her…
A: Present value is the current value of a future cash flow discounted to the present terms at a…
Q: Gil decided to sell their farm and to deposit the fund in a bank. After computing the interest, he…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: What is the rate of return on the trust fund?
A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…
Q: To help with his child's college fund, Ravi needs to invest. Assuming an interest rate of 2.23%…
A: Interest Rate 2.23% Time Period 15 Future Value $ 94,300.00
Q: Sean expects to receive $300,000 in 5 years from a trust fund. If a bank loans money at an interest…
A: In the given case, Seam is expected to receive $300,000 in 5 years from a trust fund. He can borrow…
Q: Laura needs to invest to help with her child's college fund. How much would she have to invest to…
A: Future Value = $63,400 Time Period = 13 Years Interest Rate = 2.21%
Q: o save Php 2 750 at the end of every 6 months, which is the amount paid into her retirement plan by…
A: The given problem can be solved using FV function in excel. FV function computes amount balance in…
Q: nifer is planning a trip to Alaska in 5 years. She has calculated that she will need $15,000 to…
A: In this we need to calculate the present value of future needs.
Q: Asha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social…
A: Data given: Annual requirement (atleast)= $45,000 Receipt from Social Security = $30,000 Investment…
Q: a) Ali is planning for his wedding with his fiancé Aliah. They believe they need RM30,000 for the…
A: Annuity due is a type of regular payment which is done at the beginning of the tenure of deposit.…
Q: Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If…
A: According to the time value of money rule, a dollar sum may have different purchase capacities in…
Q: Ali is planning for his wedding with his fiancé Aliah. They believe they need RM30,000 for the…
A:
Q: e do you reccoment they hold in liquid savings as reserves? why? b. How much of their investment…
A: aSummary Introduction To discuss: The recommended annual income in liquid savings for person E and…
Q: Are annuities good investments? To answer this question, consider the situation of John. He is 50…
A: IRR (Internal Rate of Return) is the formula used by the investor for evaluating the percentage of…
Q: I need help working this problem out. Figuring out what table to use, whether to use: compound…
A: Hi, this is an example of simple interest. Hence no table ca be used, as the interests are neither…
Michiko would want to invest her funds in a trust fund that pays a simple interest rate of 2.5 percent per year on its principal. Consider the following scenario: she wishes to invest Php 200,000 for three years
a. What do you think the future worth of her investment will be?
b. How much interest will she earn?
Step by step
Solved in 3 steps
- Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friends trust fund payments. For further instructions on present value in Excel, see Appendix C.Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friends trust fund payments. For further instructions on future value in Excel, see Appendix C.DETERMINING THE RIGHT AM OUNT OF SHORT-TERM, LIQUID INVESTM ENTS. Leo and Ava Bryant together earn approximately 92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost 200,000. a. How much of their annual income do you recommend the Bryants hold in some form of liquid savings as reserves? Explain. b. How much of their investment portfolio do you recommend they hold in savings and other short-term investment vehicles? Explain. c. How much, in total, should they hold in short-term liquid assets?
- Determining the right amount of short-term, liquid investments. Ella and Aaron Martin together earn approximately 92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost 200,000. a. How much of their annual income do you recommend the Martins hold in some form of liquid savings as reserves? Explain. b. How much of their investment portfolio do you recommend they hold in savings and other short-term investment vehicles? Explain. c. How much, in total, should they hold in short-term liquid assets?This is a personal finance question: If Pete has $1,000 and invests it into a mutual fund that returns 10%, what will be his Future Value in 3 years if the investment compounds annually?Elena wanted to invest in a trust fund. She borrows from a credit corporation that charges 8% simple interest to be deducted in advance and payable in 2 years. How much will she borrow to start investing P50,000? quizlet
- Jean invests $1000 in Year 1 in a socially responsible fund, and doubles the amount each year after that (so the investment is $1000, 2000, …). (a) If she does this for 10 years, and the investment pays 4% annual interest, what is the future worth of her investment? (b) What are socially/ethically responsible investment funds? How do they differ from other types of investments? Why do people invest in them?An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $550 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? Its future value? Allison and Leslie, who are twins, just received $35,000 each for their 26th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 8% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 14% per year in the fund's relatively short history. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a…. Your sister turned 35 today, and she is planning to save Php7,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires? Her first withdrawal will be made at the end of her first retirement year. A. Php58,601 B. Php61,686 C. Php64,932 D. Php68,179
- Mohammed estimate that he will need RO 10,000 in 5 years to fund his university education. How much should he invest in a trust fund that pays an interest rate of 5% pa compounded quarterly?Ali is planning for his wedding with his fiancé Aliah. They believe they need RM30,000 for the ceremony to be held exactly three years from today. Aliah is planning to start depositing RM300 per month for the event beginning next month in a unit trust that would provide her 5% return per year on average. If Ali were to invest in another unit trust investment that will provide him 7% return per annum, how much should he invest every month beginning today to ensure that their savings will be enough in three years’ time?Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her daughter fulfil her dreams when she reaches her age to marry. Assume her daughter is 3 years old and may get married in her 20s. Assume that Atita has $30,000 and wishes to invest that in a financial asset with a 9% rate of return per annum. Required: How would you define the amount of $30 000 and $150 000 in terms of the time value of money? ANSWER a (i): (answer box will enlarge as you enter your response) How long will she have to wait until she reaches the goal of $150 000? ANSWER a (ii): Mark will receive $13,500 from his parent at the end of each year for five years. He plans to invest them in a financial asset with an interest rate of 7.5%. How much money…
