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Question:
How long will it take you to become a millionaire if you invest $15, 000 at 25% compounded semi-monthly?
Step by step
Solved in 2 steps
- Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
- How long will it take you to become a millionaire if you invest P15, 000 at 25% compounded semi-monthly?at 10% annual interest compounded quarterly, how long will it takes to become a millionaire if you invest your money worth $130,000?Present Value Determine the amount of money, to the nearest dollar, you must invest at 9% per year, compounded annually, so that you will be a millionaire in 27 years. $
- How long does it take to become a millionaire? A $100,000 investment will hit $1 million in 37 years at an annual interest rate of 6.42%. How long will it take to become a millionaire if the annual interest rate increases to 7.46%?Suppose you inherited $200,000 and invested it at 6% per year. How much could you withdraw at the end of each of the next 15 years?You always dream to be a millionaire in your entire life and you have only $5,000 to invest now. Suppose you come across an investment opportunity which offers 12% annual return with monthly compounding. Calculate at what age you can realize your dream assuming that you are 20 years old today.
- You invest $10,000 into an account that earns 4.5% simple interest each year. Give anequation modeling this situation, and give the total amount you would have after 30 years.A businessman wants to have P500, 000 four years from now. What amount should he invest now if it will earn interest of 6% compounded bi-monthly for the first two years and 8% compounded semi–annually during the next two years?Suppose you buy a home and finance $285,000 at $2,243.17 per month for 30 years. What is the amount of interest paid? (Round your answer to the nearest cent