Q: How much will you need to save per month to have $200,000 after 12 years, if your account earns 5%…
A: The formula used as follows: Future value of annuity=Payment×1+rn-1r
Q: You want to buy a $23,000 car. You can make a 10% down payment, and will finance the balance with a…
A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…
Q: If you have $10,000 today, and save $12,000 per quarter year at the end of the quarter while earning…
A: In the given question we need to compute the number of quarters required to accumulate $100000 if we…
Q: You have $300 to invest. If you put the money into an account earning 13% Interest compounded…
A: Following details are given in the question : Present value = 300 Time period = 8 years Interest…
Q: A 45-year-old person wants to accumulate $750,000 by age 70. How much will she need to save each…
A: The question is based on the concept of calculation for the future value of annuity payments. An…
Q: An investment will pay you $10,000 in 10 years and it also will pay you $400 at the end of each of…
A: An annuity refers to a series of payments that regularly made at equal intervals. Present value (PV)…
Q: what is the largest down payment you can make at the end of three years (immediately after the last…
A: Value at the end of saving period comprises of monthly saving and interest on those savings.…
Q: compounded
A: Formula to calculate the value in the future: A = P(1+r)^n Where A is the future value P is the…
Q: How much will you have in 40 years if you save $3,000 each year and your account earns 8% interest…
A: In the given question we require to calculate the future value of payment made every year of $3000…
Q: How much will I have 8 years from now, if I will invest P10,300 at the end of each three months for…
A: Future value is the worth of any asset or any sum of money at a future date when such asset or money…
Q: You need 85,000 in 10 years. If you can earn .78 percent per month, how much will you have to…
A: Future value is 85,000 Time period is 10years or 10×12 = 120months Interest rate is 0.78% To Find:…
Q: Suppose you owe $600 on your credit card and are paying 14 percent interest. If you pay off the debt…
A: Interest is the amount paid for the usage of the principal borrowed.
Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…
A: Future value of growing annuity The future value of a growing annuity is the value of money received…
Q: Bill wants to invest $45,000 for the next 5 years. If the investment is going to generate 8%…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have…
A: Present value is the current worth of the amount that is expected to be received in future date.
Q: How much do I need to save each year to have $50,000 in 15 years at an interest rate of 12%?
A: Future value of annuity is the future value of the series of periodic cash flows. Future value of…
Q: You have a client who wants to buy a house in 2 years. He needs $40,000 for a down payment. If he…
A: in this problem we have to calculate quarterly interest rate and from that we can get present value.
Q: You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: You have 30 years left until retirement and want to retire with $2 million. Your salary is paid…
A: Future value (FV) is the value of a cash flow at a certain time in the future based on an assumed…
Q: How much should you invest each month in order to have $700,000 if your rate of return is 6.9%…
A: Periodic Amount that need to be invested is calculated using the formula future value of annuity.…
Q: If you saved $5,000 per year (at the end of each year) for 10 years in an account with a 4% interest…
A: Here, To Find: Future value (FV) =?
Q: If you need P350,000 for a down payment on a house in 3 years, how much money must you invest today…
A: Present value: It can be defined as today’s worth of an investment that will be received in the…
Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…
A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…
Q: What would your investment account be worth in 23 years if you currently have $7,000 saved and plan…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…
A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…
Q: if you invest $20,000 in a security today, how much will it be worth in six years? The security pays…
A: We need to use compound interest rate formula for calculation amount after 6 years. A=P(1+i)n Where…
Q: You will receive $15000 in two years when you graduate. You plan to invest this at an annual…
A: A study that proves that the 1value of money today is higher than the future value of money is term…
Q: In 6 years Dawn wants her current savings of $3700 to grow to $7300? What per annum rate, compounded…
A: Current saving (P0) = $3700 Future value after 6 years (FV) = $7300 Annual rate (r) = ? Period (p) =…
Q: If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10…
A: Annual deposits (PMT) are $10,000. The rate of interest (Rate) is 8%. The maturity (Nper) is 10…
Q: Suppose you invest $120 a month for 5 years into an account earning 9% compounded monthly. After 5…
A: Computation:
Q: You are going to receive a payment of $80 at the end of each year for the next 12 years. If you…
A: Given details are : Periodic payment = $80 Time period = 12 years Future value = $1930.65 From above…
Q: If you have $375,000 saved for retirement, how many years will it last if you earn an annual…
A: Perpetuity can be defined as the series of fixed cashflow in equal interval for an indefinite…
Q: Suppose you contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a…
A: Calculation of the funds that must be saved at end of 15 years:- Money that have been saved by…
Q: You want to buy a $13,000.00 car. You can make a 10% down payment, and will finance the balance with…
A: The Equal Montly installment is calculated with the help of following formula EMI = P × r(1 + r)n…
Q: a. You need $17,000 in five years but you only have $12,000 now. At what interest rate must you…
A: As per guidelines, I am supposed to answer 1 question at a time. As the question is not specifically…
Q: How much will you need to save per month to have $200,000 after 12 years, if you account earns 5%…
A: Compound interest = P"(1+r%/n)^tn Since the final amount is given , we need to calculate the…
Q: You decide to invest in an instrument that pays 5% annual capitalizable interest each semester. If…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: If you want to accumulate $400,000 and you have $17,000 saved now, how many years will it take if…
A: GIVEN, PV = $17000 FV = $400,000 A= $490 R=4% M=12
Q: How much should you invest each month in order to have $800,000 if your rate of return is 3.6%…
A: future value=A×1+rmm×n-1rm A=annuity r=rate of interest m=frequency of compounding n-number of years
Q: You are going to receive a payment of $80 at the end of each year for the next 20 years. If you…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: If you deposit $5,000 4 years from today, how much will you be able to withdraw 10 years from today…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: You invest $150 each month in a savings plan for a period of 30 years. If you earn an interest rate…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: You expect that you will need to replace your furnace in 4 years at a cost of $16,716. How much must…
A: Given months = 30 cost = 16716 APR = 2.91%
Q: You want to invest $10,000 today to accumulate $16,000 for graduate school. If you can invest at an…
A: Future Value = P*(1+r)^n Where, P = Principal r = rate of interest n = no. of year
Q: If you need 6,000 5 years from now, how much of a deposit must you make in your savings account…
A: Future value (FV) = 6000 Number of annual payments (n) = 5 Annual interest rate (r) = 8%
In 14 years you will need to pay $46,000 each year for 3 years. How much do I need to save each year from now with a interest rate of 12%?
Step by step
Solved in 3 steps
- 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 annuityHow 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%?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
- Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for 10 years of $50,000. The pump can be sold at the end of the period for $100,000. What is the present value of the investment in the pump at a 9% interest rate given that savings are realized at year end?You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.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?