How much money should be deposited each year for 12 years if you wish to withdraw $309 each year for five years, beginning at the end of the 14th year? Let i=8% per year. Illustrate your solution using Cash Flow Diagrams

Q: ngr. secula started 2000.00 each year for 25 years until his retirement at 65 years old. a year…

A: Given:    Annual Savings 2000 Savings period in years 25 Retirement Age 65 Withdrawal for 5…

Q: A young man has decided to go into the business at the age of 25, he deposits a certain amount and…

A: N = Number of deposits = 11  Annual Increase in deposit = 50,000 Future Value Required = 30,000,000…

Q: You decide to withdraw $13,000 at the beginning of each quarter for 10 years from your savings…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. A…

A: In this we have to calculate present value of ANNUITY FACTOR and from that we can get the six…

Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…

A: A cash flow diagram is a representation of cash inflows and cash outflows over a specified period of…

Q: What is the present value of a perpetuity stream of cash flows that pays P1,000 at the end of year…

A: present value of a perpetuity stream of cash flows = cash flows at end of year 1/(Discount rate -…

Q: A friend tells you she has saved for 10 years and has a present sum of $20,000, which earned at the…

A: We will use the concepts and formulas of time value of money to find the solution.

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Amount = Principal (1+(rate/100))^n Initially, we deposit P 100,000 in a fund with a 25% annual…

Q: How much must you deposit each year to have P30,000 at the end of 12years with money worth 8%. Show…

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: The following cash flow diagram indicates the yearly payments you will make in the future. Assume…

A: The Present Value of money: The value of a cash stream to be received or paid at some time in the…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. An…

A: First, we need to convert the interest rate compounding frequency from continuous to annual because…

Q: You will be receiving cash flows of:  $2,000 today, $2,000 at the end of year 1, $3,000 at the end…

A: Net Present Value(NPV) is excess of present value(PV) of all future cash inflows over initial outlay…

Q: JOTARO started saving $2,000 each year for 25 years until his retirement at 65 years old. A year…

A: Sometimes, some cash inflows or cash outflows are unknown in the savings or withdrawal schedule. The…

Q: What is the present value of the following cash-flow stream if the interest rate is 12%? You receive…

A: In the given question we require to calculate the present value of the stream of cashflows.

Q: quarterly payments of $4,500 each for four years and a quarterly payments $2,000 of the next 3 years…

A:

Q: If you put $850 in a bank today that pays (a) 13% interest per year, how much money could be…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…

A: Deposit = $4,000 Withdrawal after 2 years = $2,000 Remaining Withdrawal = 4 years   Interest Rate =…

Q: Consider a savings account with end-of-year transactions indicated by the following cash flow…

A: Given: Interest rate = 8% Years = 12

Q: Dr. Anderson plans to make a series of gradient-type withdrawals from her savings account over a…

A: Withdrawals start at end of year 2 Interest Rate = 9% First Withdrawal = 50,000 Annual Increase =…

Q: Mr. Jones is planning a 20-year retirement; he wants to withdraw 300,000 at the end of the first…

A: Withdraw at the end of year = 300,000 Annual increase in withdrawal = 40,000 Period = 20 Years…

Q: If you deposit BD1,500 now, BD3,600 three years, BD2000 seven years, and BD1,800 nine years from now…

A: Deposit now = 1500 Deposit in three years = 3600 Deposit in seven years = 2000 Deposit in nine years…

Q: cashflow diagram.

A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…

Q: Draw cash flow diagram and show your solution An individual makes six annual deposits in a savings…

A: Cash flow and profit are two crucial financial variables in business, and it's not uncommon for…

Q: Show the complete solution by showing your answer in terms of : • Cash flow diagram General Formula…

A: Here, Annual Payment is $70,000 Time Period is 12 years Interest Rate is 7% General Formula with…

Q: A. If money is worth 4% compounded monthly, what payment at the end of each quarter will replace…

A: Details of A: Interest Rate is 4% Compounding Period is Monthly i.e 12 Monthly Payment is P500.00…

Q: JOTARO started saving $2,000 each year for 25 years until his retirement at 65 years o retired, he…

A: Future value FACTOR =(1+r)n-1/r Future value FACTOR =(1.09)25-1/0.09 Future value FACTOR =84.70…

Q: Southwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 3…

A: Here, Cost of Tractor in three years (FV) is $450,000 Time Period (n) is 3 years Interest rate (r)…

Q: K Suppose you receive $500 at the end of each year for the next three years. a. If the interest rate…

A: Present value is the value right now of some amount of money in the future. Formula : PV = FV x…

Q: How much money should be deposited each year for 7 years starting 1 year from today, if you wish to…

A: Let the annual deposit = A i = 8% We need to find the future value of deposits at the end of 13…

Q: 1. Man wishes his son to receive 200,000 in 10 years from now. What amount should he invest if it…

A: Present value can be defined as the current value of the amount that will be received in future from…

Q: What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year…

A: Year 1 cash flow (CF1) = $80,000 Growth rate (g) = 0.06 Interest rate (r) = 0.10 Present value = ?

Q: Calculate how much will Sonja have in a savings account 12 years from now if she deposits RM 3,000…

A: Given in the question: Rate of Interest 10% Period 12 Years Initial Deposit…

Q: How much money should be deposited each year for 12 years if you wish to withdraw $309 each year for…

A: Present value FACTOR =1-(1+r)^-n/r  Future value FACTOR =(1+r)n-1/r

Q: You are currently investing your money in a bank account which has a nominal annual rate of 7…

A: To estimate how long it will take to double an investment at a given interest rate, we can use the…

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Compound interest formula : Final amount = Principal (1+interest rate/number of compounding…

Q: A woman is considering giving an endowment to a university in order to provide payments of P5000 and…

A: The movement of money into and out of a business is referred to as cash flow. The cash flow…

Q: If you want to withdraw $35,000 at the end of four years, how much should you deposit now in an…

A: Cash flow diagram is a graphical representation of cash flow series over a period of time. It shows…

Q: 4. A young man has decided to go into the business at the age of 25, he deposits a certain amount…

A: The future value = 30 million or 30,000,000   Here n = 11 years (duration between 35 years and 25…

Q: If you want to withdraw $20,000 at the end of two years and $55,000 at the end of four years, how…

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded…

A: Loan (L) = $10000 Interest rate = 12% compounded semiannually Duration = 3 years = 36 months We need…

Q: 2. You want to set up a savings plan for your business that you want to pursue 3 years from now. You…

A: Future value of the yearly payments should be "FV" $310000 Payments each year "PMT" = to be…

Q: if you had $ 100,000 hat was invested at 7% and you wanted o withdraw $10,000 at the end of each…

A: (a) Amount invested=$ 100,000  Interest rate=7% Periodic withdrawals=$10,000 Formula:…

Q: 1. Engr. Johnson started saving ₱2000.00 each year for 25 years until his retirement at 65 years…

A: Final withdrawal amount is the amount which will be withdrawn at the last instalment from the…

Q: Suppose you decide to save P3,000 per month for the next three years.  If you invest all of these…

A: Here, Equal amount at equal interval (A) = P3,000 per month Time period in years (n)= 3 years Rate…

Q: Mr. Holzman estimates that the maintenance cost of a new car will be 3,750 the first year, and will…

A: Maintenance cost in year 1 (M1) = 3750 M2 = 6250 M3 = 8750 M4= 11250 M5 = 13750 M6 = 16250 r = 5.5%…

Q: You make monthly deposits of P100 into an annuity and after 30 years wish to accumulate P160,000.…

A: Interest is required to be paid on the amount loaned obtained by the borrower from the lender.…

Q: The maintenance on a machine is expected to be $1,500 at the end of four years. This amount is…

A: Here we will have to use the concept of time value of money and then use the concept and formulas of…