Answered: I will invest $500 per month at the…

I will invest $500 per month at the beginning of each month for my retirement at 7.3% compounding monthly for 32 years. What will be balance in my account? Use excel

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 11PROB

See similar textbooks

Related questions

Q: What is the future value of $2,500 deposited at the end of each quarter year for 15 years earning 8%…

A: In the given question we need to compute the future value of $2500 deposited at the end of each…

Q: You have $1,800 to invest today at 8% interest compounded annually. Find how much you will have…

A: Information given in the question is as below: Investment today = $1800 Interest rate = 8% Time…

Q: You deposit $10,000 in a retirement account today at 5.8% interest with annual compounding. How much…

A: Future value = Present Value×[1+Periodic interest rate]^n Where, n = number of periods = 28…

Q: If money is worth 8% annually, what annual payment is required to raise ₱ 18,811 after 2 years if…

A: Future Value of Annuity Due = (1 + r) x P x [{(1 + r)^n} - 1] / r

Q: To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate…

A: The future value of an annuity is the worth of a series of recurrent payments at a future date,…

Q: You have $11,489.64 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Given: Present value (PV)= $ 11489.64 PMT = $5000 Future value (FV) = $200, 000. Rate = 11% = 0.11

Q: You plan to invest $1,200 at the end of year 1, $2,000 at the end of year 2, and $3,700 at the end…

A: Given data; Amount deposited at the end of year 1 = $1200 Amount deposited at the end of year 2 = $…

Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: The future value of annuity helps an investor or an individual to know the future value of their…

Q: At the end of each quarter, a life insurance client deposits PhP 9,174 for 5 years. If money is…

A: The amount of saving can be calculated as future value of annuity.

Q: If you save 400 per month for retirement in an account that earns 8% interest per year, compounded…

A: Given information: Monthly saving $400 Interest rate 8% Number of years is 36

Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of…

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

Q: You plan to prepare for retirement by making monthly contributions $1,500 to a savings account that…

A: Accumulated savings is defined as the savings, which amount for putting the back or investment each…

Q: You are planning to make annual deposits of $3,600 into a retirement account that pays 8 percent…

A: The company will invest in another company to earn profits from the investments. The company will…

Q: If you deposit $620 every month for the next 9 years, with first deposit to be made today and all…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: Assume that today is the first day of the month and that it is also your first day of retirement.…

A: The question is based on the concept of periodic payment as annuity payment Formula as,…

Q: Suppose I just opened an account today, and it has a $0 balance. Starting next month I will make…

A: Data given: FV= $ 1,000,000 Interest rate= 9% compounded monthly Interest rate per month=…

Q: How much money must be deposited at the end of each year in a savings account that pays 9% per year,…

A: Compounded annually means at the end of every year, interest shall be added back to the principal…

Q: You are expecting to retire in 28-years and you want to retire with $10,000,000. How much you must…

A: Given information: Future value is $10,000,000 Present value is $122,000 Number of years is 28…

Q: You currently have $250,000 in your retirement account. What equal annual amount can you withe each…

A: We will have to use the concept of time value of money to solve this.

Q: You have accumulated $1,793,836 for your retirement. How much money can you withdraw for the next 14…

A: Given that:Accumulated amount=$1793836Years=14Rate=9.90 % per year(Compounded annually)

Q: A man is planning to retire in 20 years. He can deposit money for his retirement at 8% compounded…

Q: How much must be deposited at the beginning of each year in an account that pays 7%, compounded…

A: Here, The future value is FV i.e $28,000 The rate of interest is r i.e. 7% The maturity is n i.e 10…

Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…

A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%

Q: l invest $500 per month at the end of each month for my retirement at 7.3% compounding monthly for…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: What sum of money must be deposited at the end of every 3 months into an account paying 3.7%…

A: Amount that need to be deposited in in 3moths can be calculated using the formula of the future…

Q: If i you are expecting retire in 28 years and you want to retire with 10,000,000. how much you put…

A: given, present value ( pv) = $122,000 future value (fv) = $10,000,000 n =28 years let monthly…

Q: $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have a choice of…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: You have $1,500 to invest today at 7% interest compounded annually. How much will you have…

A: this future value which is what our investment is worth if invested today at given rate future…

Q: At the end of each quarter, a life insurance client deposits PhP 7,076 for 5 years. If money is…

A: Quarterly deposit (P) = Php 7076 Period = 5 Years Number of quarterly deposits (n) = 5*4 = 20…

Q: You have begun a 401k at work, contributing $1,000 at the end of each year. How much is your account…

A: The worth of an account in the future can be calculated using the FV function in Excel.

Q: How much can be accumulated for retirement if OMR2,000 is deposited annually, beginning one year…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: how much is this account worth in today's dollars?

A: Present value: It is the present worth of the annuity cashflows discounted over a period of time.…

Q: If you deposit $110 every month for the next 7 years, with first deposit to be made today and all…

A: In this we have to calculate equivalent monthly compounding rate and calculate the future value.

Q: You are investing the following amounts at the end of each of the following three years. How much…

A: Year 1 Amount (C1) = $2,000 Year 2 Amount (C2) = $4,000 Year 3 Amount (C3) = $6,000 r = Return i.e.…

Q: Determine the size of your investment account 23 years from now (when you plan to retire) if you…

A: Future value: It is the value of the current asset, depending on the assumed rate of the growth, at…

Q: l invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. What will be…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Q: If you save $500 per quarter for retirement in an account that earns 8% interest per year,…

A: Retirement planning wherein a fixed amount is saved for a definite period to reap the benefits of…

Q: You have $34,256.85 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Using NPER function in excel, this can be ascertained and the following inputs are used for…

Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: given, FV = $220000 r= 12% time line

Q: a. You plan to invest $5,000 in an individual retirement arrangement today at a nominal annual…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: 0 per quarter at the beginning of each quarter for my retirement at 7.3% compounding quarterly for…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Q: How much can be accumulated for retirement if $12,000 is deposited annually, beginning one year from…

A: Given information: Annual deposit amount is $12,000 Interest rate is 9% Number of years is 17

Question

I will invest $500 per month at the beginning of each month for my retirement at 7.3% compounding monthly for 32 years. What will be balance in my account? Use excel

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
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.
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 annuity
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?