If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need to deposit each year for these 7 years? Assume that your money will earn 10 percent per year.

Q: You are scheduled to receive $44,000 in two years. When you receive it, you will invest it for 7…

A: Computation:

Q: You want to be able to withdraw $40,000 from your account each year for 15 years after you retire.…

A: The Present Value of this withdrawal is computed as follows: Withdrawal = $40,000 Time period = 15…

Q: What would you pay for an annuity of $2,000 paid every six months for 12 years if you could invest…

A: Details given in the question are : Annuity payment every six months (PMT) = $2000 Time period (n) =…

Q: Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the…

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

Q: You decide to make annual deposits of $300.00 for 12 years into an account which pays 5% compounded…

A: Annual deposits = $300 Time duration = 12 years Interest Rate = 5%  The future value of the annuity…

Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…

A: Given: Future value = $50,000 Interest rate = 4.5% Years =10

Q: you wish to save $30,000 as a down payment for a house in 7 years. How much must you save every year…

A: Given: FV =$30000NPER =7 YearsRate of Interest =4%

Q: You deposit $1000 each year into an account earning 6% interest compounded annually. How much will…

A: Future value of any deposits made is equivalent to the compounded value of deposits made for all the…

Q: You are offered the opportunity to put some money away for retirement. You will receive 6 annual…

A: Computation:

Q: Omar wants to buy a house in another 7 years. The type of house he wants to buy is currently selling…

A: Future value: Future value is $97,435.86

Q: A balloon payment of $21,000 on your house is due in 10 years. Ifyou can earn an average of 5…

A: INTEREST RATE 5% YEARS 10 PMT 0 FUTURE VALUE 21000

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: Assume you deposit $5,200 at the end of each year into an account paying 10 percent interest. a.…

A: deposit made at the end of each year = $5200                        interest rate annum     = 10%…

Q: Jeremy is investing $5,000 today and will do so at the beginning of another nine years for a total…

A: The future value of the annuity due is the future worth of a cash flow series receivable/period at…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $73,000 of…

A: The provided information are: Particular Value RATE 5.25% YEARS 19 PMT (MONTHLY PAYMENT)…

Q: Jami Minard wants to receive an annuity of $8,000 at the beginning of each year for the next 10…

A: Annuity refers to a contract between an individual and an insurance company under which a desired…

Q: You want to be able to withdraw $30,000 from your account each year for 25 years after you retire.…

A: in this problem you have to calculate present value of retirement amount and that will be retirement…

Q: You would like to have $15,000 in 4 years for a down payment on a home. How much would you need to…

A: Future value or amount required for down payment = FV = $15,000 Semiannual period of annuity = t = 8…

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

Q: If I would like to have $250,000 in my savings account after making contributions for 30 years, what…

A: Present Value = Monthly Contributions * PVAF ( Monthly Rate, number of Months )

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…

A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%

Q: You need to have $25000 for a down payment on a house in 5 years. If you can earn an annual interest…

A: Concept is of present value. Present value is the current value of a future cash flow at a specified…

Q: You are saving money for a down payment on a new house. You intend to place $5,000 at the end of…

A: The amount at the end of the fifth year is the future value of the payments. The future value is the…

Q: Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  FV = $80,000 n = no. of compounding period 10*12…

Q: You are going to receive a payment at the end of each year for the next 12 years. If you invest each…

A: The future Value of an investment is an estimation of receiving some amount after some period of…

Q: If you wish to accumulate $25,000 by the end of 5 years, how much would your annual payment be if…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: You plan to retire in exactly 20 years' time and expect to live for 30 years after you retire. In…

A: Annuity is the concept of accepting or depositing equal amount at equal time interval over a period…

Q: What is the amount a person would need to deposit today to be able to withdraw $6,000 each year for…

A: Present value (PV) is the current value of future money or cash flows at a specified rate of return.…

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: You will need $46000 for a down payment on a house in 9 years. How much should you deposit in a…

A: Present value refers to the  current worth of the amount that is expected to be received in future…

Q: John and Rosamond want to retire in 10 years and can save $130 every three months. They plan to…

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

Q: Suppose you invest in an annuity that pays 5% annual interest, compounded quarterly. If you…

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

Q: ow $ 150,000 for a house with 10% down payment at 8% compound annual interest rate for 30 years,…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: Can you help me work out this problem in detail?   Ben wants to receive $6,000 a year for 10 years.…

A:

Q: When you retire at 65, you wish to be able to have $3,000 each month for 25 years. How much would…

A: Firstly calculate the present value of annuity with $3000 as PMT and 25 years, use this present…

Q: You want to be able to withdraw $25,000 from your account each year for 25 years after you retire.…

A: Here, Withdrawal Amount is $25,000 Time Period of Withdrawal (Withdrawal Period)  is 25 years Time…

Q: You want to have 75000 in your savings account 12 years from now, and you’re prepared to make equal…

A: Given information: Amount at the end (Future value) 75000 Time Period (in years) 12 Interest…

Q: You plan to buy the house of your dreams in 18 years. You have estimated that the price of the house…

A: Monthly payment refers to the periodic payments made towards the acquisition of an asset or security…

Q: when you retire 40 years from now you plan to make 10 annual withdrawals from your savings accounts…

A: The present value is calculated by multiplying all future cash flows by present value factor using…

Q: You deposit $200 each month into an account earning 5% interest compounded monthly.  How much will…

A: Future worth of the amount is referred as the worth of the currently deposited amount at some future…

Q: You are going to receive a payment of $80 at the end of each year for the next 20 years. If you…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: How much money will you accumulate by the end of year 10 if you deposit $3,000 each for the next ten…

A: Annuity payment (PMT)= $3,000 Time period (n)= 10 years Rate of interest (i)= 5% per year Future…

Q: Suppose that you would like to have $25,000 to use as a down payment for a home in five years by…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: If you save $25 per week by bringing your lunch to school for 4 years, 12 months per year, and you…

A: There are two types of annuity that we could calculate: Ordinary annuity and Annuity due. The…

Q: You expect to retire in 25 years. After you retire, you want to be able to withdraw $3000 dollars…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…

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