Q: How much would you need to deposit in an account now in order to have $6000 in the account in 10…
A: Given information Future Value = $6000 Time Period =10 years *12= 120 periods(As periods are…
Q: How much would you need to deposit in an account now in order to have $3000 in the account in 15…
A: Using excel PV function
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A: Present Value is a current value of a future amount that is receivable or payable. While, Future…
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A: Deposit required today = FV/(1+r)n Where FV - Future value = $60,000 r - Interest rate = 9% n -…
Q: If you deposit money today in an account that pays 4% annual interest, how long will it take to…
A: Assume , you invest $100 double the money invested = $100 * 2 = $200
Q: Suppose you want to have $300,000 for retirement in 25 years. Your account earns 5% interest. How…
A: The monthly deposits to have $300,000 after 25 years, will be a form of an annuity as the same…
Q: How much would you need to deposit in an account now in order to have $2000 in the account in 10…
A: Here, Future Value is $2,000 Compound Period is Monthly Interest Rate is 7% Therefore, Monthly…
Q: How much would you need to deposit in an account right now in order to have $2,000 in the account in…
A: Amount = $2,000 = A Time period = 10 years = T Interest rate = 2% = R Compounded monthly where it…
Q: 1. If you deposit money today in an account that pays 6.5% annual interest, how long will it take to…
A: Future value is the value of cash in future at a particular date.Let us assume if person X has…
Q: If you deposit $2,000 in a bank account that pays 6% interest annually, how much will be in your…
A: Solution- Given-The present value of deposit is=$2,000The rate of interest is=6%Time is…
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A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…
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A: Future value of the retirement account should be (FV) = $250000 Number of periods of month payments…
Q: 2. If you deposit $1500 in bank account that pays 10% interest annually, how long will it take to…
A: Using the NPER functions
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A: The time value of money implies that the cash in hand at present has a higher value than the cash…
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A: N = 24, PV = 0 rate = 4%/12 PMT = 100 use FV function in Excel with type as 0
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. a)…
A: Introduction Future Value: The value derived for the money invested today at a future point of time,…
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A: $10000 in 5 Years That is 5*12 months = 60 Months (n) Interest rate 4% annual compounded monthly…
Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…
A: Dear student we need to use excel for calculation of monthly deposit(PMT) by using PMT functions.
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A: Computation:
Q: If you deposit money today in an account that pays 9.5% annual interest, how long will it take to…
A: Given The rate of interest is 9.5%
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 8% interest. a) How…
A: The amount to be invested each month will be compounded and will form a corpus und at the end of the…
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A: Let us assume you deposit $100 so FV would be $200
Q: If you deposit 10000 in a bank account that pays 10% interest annually, how much will be in your…
A: The amount in the account after 5 years is future value of the deposited amount. Future value can be…
Q: How much would you need to deposit in an account now in order to have $6000 in the account in 15…
A: Present Value is the today's value of a future amount at a given interest rate for a specified time…
Q: If you want to have $60,000 in 8 years, how much do you need to deposit in the bank today if the…
A: Here. Required Amount in 8 Years (FV) is$60,000 Interest Rate (r) is 9% Time Period is 8 years
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: How much would be in your savings account in 10 years after depositing $50 today if the bank pays 7…
A: Given details : Present value of investment = $50 Time period = 10 years Interest rate = 7% We…
Q: You deposit $100 in a savings account today, and this account accrues interest compounded annually…
A: Compounding is the power of increasing the amount of investment by adding interest in principal and…
Q: Suppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 forfour…
A: Time value of money (TVM) means that the money received today will be worth more than the money…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: If you deposit $300 now into a savings account and increase your deposits by 10% each month. How…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: If you deposit money today in an account that pays 6.5% annual interest, how long will it take to…
A: Rule 72 refers to the rule which makes it a simple calculation for the person to determine that in…
Q: If you deposit money today in an account that pays 4%annually interest. How long will it take to…
A: Let's Say, one deposited $50,000 at 4% pa, you want it to become 1,00,000, one needs to follow the…
Q: How much do you need to invest into an account today with 7% monthly compounded interest in order to…
A: Given details are : Future value = $500000 Interest rate = 7% Compounding frequency = Monthly Time…
Q: How much would you need to deposit in an account now in order to have $4000 in the account in 5…
A: We need to use compound interest formula given below to solve this problem. A=P(1+i)n Where A= Final…
Q: You deposit $4000 in an account earning 2% interest compounded daily. How much will you have in the…
A: Given, Deposit amount = $4000 Interest rate = 2% Compounding = Daily
Q: How much would be in your savings account in 7 years after depositing $100 today if the bank pays 5…
A: Using excel FV function
Q: If you deposit $100 today and $200 in two years in an account that earns 10% annual interest, how…
A:
Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Computation as follows: Hence, amount to be deposited in each month is $1515.02.
Interest rate (r) = 5%
Future value factor required (FVF) = 3
Period = n
Step by step
Solved in 2 steps
- 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?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?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?
- 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 annuityYou 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 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.