I expect to save $100,000 in 15 years for my kid's college savings account. Assuming I get a return rate of 10% compounded annually, how much should my present investment be?

Q: Jorge is considering an investment that will pay $4,650 a year for five years, starting one year…

A: Rate of return is an expected profit on an investment by an investor. It is a rate at which investor…

Q: You expect to receive $26,000 at graduation in two years. You plan on investing it at 9.25 percent…

A: Present Value = $26,000  Future Value = $161,000  Rate (r) = 9.25%

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: You are planning to buy your dream mansion and for that you have decided to make 3 independent…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for a time.…

Q: How much will you have saved after 6 years by contributing $1,200 at the end of each year if you…

A:

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: You receive $100 today, $200 in one year, and $300 in two years. If you deposit these cash flows…

A: Formula FV = CF0*(1+R)3+CF1*(1+R)2+CF2*(1+R)1 Where FV - Value of account after 3 years R - Interest…

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: If you invest $15,000 every year and expect to increase your investment by 6% each year for the next…

A: Annual investment (A) = $15000 Growth rate (g) = 6% r = 7% n = 20 years

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: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…

A: Generally, investment is done by individuals order to have sufficient money available for future…

Q: Assume that you are saving up for a trip around the world when you graduate in two years. If you can…

A:

Q: You plan to save $4,800 at the end of each year for the next 8 years. How much money will you…

A: Future value is to be calculated , rate of interest is 4% and time is  year by paying regular…

Q: You have $10,000 to invest for five years. - How much additional interest will you earn if the…

A: Given Information : Amount invested - $10,000 (Present value) Rate of interest (r) - 5%/4.5% Time…

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: Your client has great news. His son was born last week. He wants to set aside $50,000 today to cover…

A: Future Value = Present Value ( 1 + i )n   Note: Assuming that interest on his investment will be…

Q: Sam wants to have $160,000 in four years from now. She found an investment, earning 6% per year,…

A: The amount that should be invested now to earn a certain sum of money in the future is equal to the…

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: roy gross is considering an investment that pays 7.6%, compounded annually. How muchwill he have to…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and…

A: Calculate the net present value as follows:

Q: You want to buy a house within 3 years, and you are currentlysaving for the down payment. You plan…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: If I lend $40,000 to my friend at 8% per year simple interest, what compound interest rate would…

A: Given: Amount = $40,000 Interest rate = 8% Years = 10

Q: An investment will generate 10,000 a year for 25 years. If you can earn 10 percent on your funds and…

A: Present value of annuity=Annuity1-1+Interest rate-Time periodRate

Q: Starting next month, I plan to invest $500 per month for 10 years to reach my goal of $100,000.…

A: The rate of interest is used in the calculation of the interest amount on the principal value. The…

Q: If you would like to have $20,000 in 5 years, how much should you invest today if your investment…

A: Present value is the value today of future cash flows discounted at the required rate of return for…

Q: How much should you invest each month in order to have $800,000 if your rate of return is 7.5%…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: How much should you invest each month in order to have $400,000 if your rate of return is 6.5%…

A: Future value of investment is 400,000. The rate of interest is 6.5%

Q: An investor paid $58,000 for an investment. He will get $5,780 for every two years forever). What is…

A: INVESTMENT RETURNS

Q: You would like to have enough money saved to receive a growing annuity for 25 years, growing at a…

A: The present value of the growing annuity is the current worth of a cash flow series growing at a…

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: Tuck Hardware Store will have $30,000 payment due in 5 years. How much would they need to invest…

A: Computation:

Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…

A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%

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: you estimate that you will need about $80,000 to send your child to college in eight years.Y ou have…

A: To Find: Rate of Interest

Q: Christine would like to know the value of their savings, assuming that they deposit $750 each month…

A: Monthly deposit (P) = $750 Growth rate (g) = 3% Period = 25 Years Number of deposits (n) = 25*12 =…

Q: I am investing $50,000 right now and will add $8,000 each year for the next 10 years. The expected…

A: Investment = 50,000 Annual Payment = 8000 Time Period = 10 years Rate of return = 6.5% Future Value…

Q: You will require $730 in 5 years. If you earn 5% interest on your funds, how much will you need to…

A: Given: Future value =$730 Years = 5 Interest rate = 5%

Q: You expect to receive $10,000 at graduation in two years.  You plan on investing it at 11 percent…

A: Future amount can be calculated as follows: = Present Value * (1 + rate)^ periods

Q: How much should you invest each month in order to have $300,000 if your rate of return is 7.1%…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Suppose you plan to have $70,000 in 25 years from now and you can invest your savings at 6%…

A: Continuous Compounding: Continuous Compounding is a concept that represents an account in which the…

Q: You expect to receive $ 10,000 at graduation in two years. You plan on investing it at 12% until you…

A: Given information: Present Value of amount=$10,000 Future Value you expect to receive=$120,000 Rate…

Q: How much will your investment be worth eight years from now? Can the excel and calculator solutions…

A: Information Provided: Interest rate = 6.5% Amount to be received (Year 2) = $5000 Term = 10 years

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: You plan to buy an apartment for $300,000, but you have only $8,000 in cash. The bank will  loan you…

A: Time value of money is considered to determine the equated instalments that are due for each period.

Q: You calculate that you will need $75,000 in ten years to be able to pay for your daughter's college…

A: The question is based on the concept of Financial Accounting.

Q: A. A person wants to generate fourintallments of $1,000 in the following four years. How much money…

A: Discounting the future cashflows provides the present value.

Q: Keith Riggins expects an investment of $82,014 to return $10,000 annually for several years. If…

A: Formula: P= C×Annuity Factor where,  P is present value of an annuity C is future cash flow

Q: You are planning on retiring for retirement 34 years from now. You plan to invest $4,200 per year…

A: Future value of annuity (FVA) is the value of stream of recurring cashflow at regular interval…