How much of the financial goal comes from deposits and how much comes from interest? Rate 5% compounded annually time 18 years goal 150000

Q: 1. Solve each problem involving a single payment investment that earns compound interest. a) $8 000…

A: Time Value :— According to this concept, there is difference in value of money invested today and…

Q: Funds are deposited in a savings account at an interest rate of 8% per annum. What is the initial…

A: Annual interest rate = 8% Future value = P 10,000 Period = 10 Years

Q: 5. A fund of P3,000,000 needs to be available after 10 years. How much deposit should be made every…

A: Future value required (FV) = P3,000,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…

Q: With a 0.14 compounded semi annually, approximately how much money must be invested today in order…

A: Given information : Interest rate 14% Amount to be withdrawn $7,802 Time period (years) 7…

Q: The amount of money that needs to be deposited into an account to reach some future goal is called…

A: The present value is the current value of an amount to be received in the future. It is calculated…

Q: Future Value Suppose that money is deposited steadily in a savings account so that $14,000 is…

A: The formula for amount after n years for series of same payment at r% compounding continuously is:

Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…

A: We have the following information: Annuity: $24,000 Rate of Interest: 5%

Q: How much money should be invested at rate 2% compounded semi-annually to produce a future value of…

A: Present value of an investment is the initial amount that is invested in financial asset.  It is…

Q: Find the amount that should be set aside today to yield the desired future amount. Future amount…

A: In this question we need to compute the amount that should be set aside today i.e. present value.

Q: How much should be invested now at 6.7% compounded semiannually to have $47,000 in 19 years?

A: The amount required to be invested today is calculated as present value

Q: 800

A: Formula to calculate the future value of ordinary annuity is: FV = C*[(1+I)^n - 1/i] Where C is the…

Q: How much is accumulated in each of the savings plans over two years? a. Deposit €1100 today at 15…

A: Given: Particulars 15% 12% Deposit € 1,100 € 700 Years 2 2

Q: Find the amount necessary to fund the given withdrawals. Yearly withdrawals of $1250 for 14 years;…

A: The present value is needed for a withdrawals made at a certain period. It will be taken in order to…

Q: How many year and how many days

A: The formula for calculation of future value is as under FV = P (1+ RT) P= Principal R = Rate of…

Q: Calculate the present value for the cost of RM 10,000 which will be spent for 20 years if the…

A: Present value = FV / (1+r)^n Where r = interest rate per period n = no of periods FV = Future value…

Q: 2. If you invest P25,000 at 8% interest compounded annually, approximately how much money will be in…

A: The future value is the compounded value of an amount of deposit. The future value is calculated…

Q: Find the amount the bank will produce if $2100 is invested for 5 years, compounded daily at 6.48%

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: 3. Ir the money is worth 5%% compounded annually. what single payment now is equivalent to 45…

A: The single payment now will be the present value of the series of cash flows beginning 5 years from…

Q: Classify the financial problem. Assume a 9% interest rate compounded annually. Deposit $200 at the…

A: Solution:- When an equal amount is deposited each year, it is called annuity. The accumulated value…

Q: A loan of 350000 is taken over twenty years and will be repaid using the sinking fund method with…

A: Loan amount (P) = 350000 Annual interest rate = 3% Quarterly interest rate (r) = 3%/4 = 0.75% Period…

Q: f 10,000 is deposited in the bank annually with a 12% per year interest rate. how long will the…

A: Annual Deposit = 10,000 Interest Rate = 12% Future Value Required = 1,000,000

Q: annual cash flow f

A: Annual cash flows refer to the income of the company before deducting any interest, taxes,…

Q: Consider a 25-year $200,000 5/1 ARM having a 2.7% margin and based on the CMTindex. Suppose the…

A: Payment is the transfer, in appropriate amounts, of money, goods or services in return for goods and…

Q: Savings Calculator Starting Amount $20000 Annual Contribution $5000 for 5 years increase 3 %/year…

A: Data given: Starting amount =$20000 Annual contribution=$5000 N= 5 years Increase in contribution…

Q: Q) $15,000 is invested in an account at time 0. At the end of 4 years, Invested into the same…

A: Future Value Future value (FV) is the value of a current asset at a future date based on an assumed…

Q: A 10,000 loan is paid off over 10 years; interest is 6 percent effective. The borrower uses a…

A: Sinking funds are funds which are set aside for the repayment of a particular debt or loan.

Q: A payment of $17,000 is due in 1 year and $11,000 is due in 2 years. What two equal payments, one in…

A: Given : Annual interest rate is 3.25% So quarterly interest rate = 3.25/4 = 0.8125% We assume two…

Q: Amortization Problem Loan Amount: $150,000.00 Loan Term: 30 Years Interest Rate: 4.00% APR N PV PMT…

A: Given: Amortization Problem   Loan amount $150,000 Loan term 30 Interest rate 4%

Q: the loan is allotted is 20 years. What sum of annuities still remains to be paid just after payment…

A: PV of A amount paid for first 8 years = A(1-(1+r)^-8)/r PV of 3A amount paid for the next 5 years =…

Q: The discount rate is 8.25%.  What is the present value of five annual $41 cashflows? The first…

A: Present Value = Future Value /((1+i)n) n is the Number of Years

Q: Principal value What principal value must be invested today so that it's value grows to 2500 in 4…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: Intro You expect to receive two cash flows: $31,000 paid in 5 years and $46,500 paid in 10 years.…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Find the amount necessary to fund the given withdrawals  yearly withdrawals of $1150 for 10 years;…

A: Present value of annuity: Annuity payment * Present Annuity Factor of $1 at i% for n years. Where, i…

Q: An amount of R30 0000 is deposited into an account now, at a rate of 3,9% pa. Three years from now…

A: Given: Deposit amount = 300000 Interest rate = 3.9% Additional amount = 170000 New interest rate =…

Q: 1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6…

A: Using excel PV function

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: An investment is providing a scholarship worth $4720 every year indefinitely. What is money invested…

A: Perpetuity: Perpetuity is the series of fixed payments which is incurred or received for the…

Q: Find the present value of the following cash flow: receive $7 every year for 28years with the first…

A: Given Information: Amount to be received every year = $7 for 28 years Fist payment received in 9…

Q: For 10 years with total payments of $ 10000 per year, calculate the total amount accumulated after…

A: Calculation of the total amount accumulated after 10 years:   Calculation with formulae:

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Present Value represents the present worth of the investment. This can be computed by using Excel…

Q: $500,000 lent for 8 years at simple i = 11% per year. What is repayment after 8years? i) For simple…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Compute the amount of money to be set aside today to ensure a future value of $1,400 in one year if…

A: Present value is the value of an asset in today’s term. In other words it is the amount of money…

Q: Payments of $1300 due today and $1800 due in 1_34 years are to be replaced by a single payment four…

A: given, rate = 2% m=4 let cashflow at year 4 = A year cashflow 0 1300 1 1800 3 1800 4 1800…

Q: How much money should be invested at 10% so as to get 10,000 after 5 years when the interest is…

A: Answer: Calculation of the money that should be invested at 10% so as to get 10000 after 5 years:…