James deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $⁢60,000 in 17 years. Assuming an APR of 3.7%, how much of the $⁢60,000 will James ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.

Q: with the age of 25, Anthony establishes an Individual Retirement Account (IRA).  If he invests…

A: The account value at age of 55 can be calculated with the help of future value of annuity.

Q: Ethan wants to set up a fund for his son's education such that he could withdraw $2,982.00 at the…

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A: Annuity is type of financial instrument (insurance contract) in which you pay certain amount…

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A: Present value of annuities will be the equivalent value of future cash flow to be received in the…

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

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A: Future value of investment includes the amount deposited and interest being accumulated over the…

Q: Mike joins a savings program where he deposits $1000 at the begint he will earn a perpetuity paying…

A: Here,

Q: Goran plans to set aside money for his young daughter’s college tuition. He will deposit money in an…

A: Given: Future value of annuity = $71,000 Interest = 2.4%

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

Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: Future value represents the future worth of existing cash flows. It is determined by compounding…

Q: Walter deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

A: Future value required (FV) = $ 80000 Interest rate = 3.7% Quarterly interest rate (r) = 3.7%/4 =…

Q: Jake plans to contribute $3600 at the end of each year to his IRA. If he earns a return of 8.5%…

A: Future Value Future value  is the worth of any asset or any sum of money at a future date when such…

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A: We will apply the required formula to calculate the quarterly payment, we will take the future value…

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A: Future value is the future worth of an investment which is calculated using the method of…

Q: Jean-Rene wants to make a lump-sum deposit today such that at the end of every three months for the…

A: Given Information: Interest rate = 8.75% compounded semi-annually Lump-sum payment = $10,000 Payment…

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A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

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A: Future value of an annuity: Future value of the annuity is the annuity factor used to calculate the…

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A: The amount required to deposit today can be calculated with the help of present value function.

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A: Annuity is referred as the instalment paid at the regular interval for a particular period. The…

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A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

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

Q: eposit $220 at the beginning of each of the 15 years, using interest at 7% per year, how much he…

A: Given information :

Q: To help out with her retirement savings, Rachel invests in an ordinary annuity that earns 7.8%…

A: A regular series of fixed payments that are made or received at equal time intervals is term as the…

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Q: John plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: Let the monthly deposit = M r = 2.4% per annum = 0.2% per month n = 14 years = 168 payments Future…

Q: Ann and Tom want to establish a fund for their​ grandson's college education. What lump sum must…

A: Using excel PV function

Q: On January 1, Alan King decided to transfer an amount from his checking account into aninvestment…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: At the time of her grandson's birth, a grandmother deposits $12,000 in an account that pays 3.5%…

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Q: James deposits $⁢768.51 each quarter into an annuity account for his child's college fund. He wishes…

A: This question belong to the topic of Future value of annuity, as future value of quarterly annuity…

Q: Sehar has accumulated $245,000 in her retirement savings plan. When she retires in exactly 4 years…

A: Accumulated saving (A) = $245000 n = 4 years = 16 quarters r = 6% per annum = 1.5% per quarter Let…

Q: Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How…

A: Let's begin by calculating Effective Interest rate Formual for Effective Interest Rate = (1  +…

Q: Ashley invests $250 a month in her 401(k) retirement account, which earns an 8 percent annual…

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Q: Harry plans to deposit $3,000 at the beginning of each year into a savings account earning 2.75%…

A: The amount which is deposited at the beginning of each period is called as annuity due. The period…

Q: Manuel plans to set aside money for his young daughter’s college tuition. He will deposit money in…

A: Ordinary annuity is regular deposits at the end of each period. To calculate monthly deposits for a…

Q: A couple plans to save for their child’s college education. What principal must be deposited by the…

A: Savings refers to money put aside for some specific work or for emergency needs. Saving is used to…

Q: Madison and Colton plan to send their son to university. To pay for this they will contribute 12…

A: Given information: Contribute 12 equal yearly payments APR is 4.9% Withdrawals of $34,000

Q: To ensure his retirement income, a 40-year old man plans to purchase annuity when he turns 65. The…

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A: Calculation of amount should jack deposit to equal Arnie’s annual deposits: Answer: Jack should…

Q: Gustav desires to deposit with a Trust Company a sum just sufficient to provide his family with an…

A: The Trust need to pay $600 per month for twenty four year, so the individual need to deposit…

Q: A father wants to set aside money for his son's future college education. Money can be deposited in…

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

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Q: A mother wishes to set up a savings account for her son's education. She plans on investing $750…

A: Future value of ordinary annuity computes the total amount of periodic payments at a certain time…

Q: Frank plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: This is a case of ordinary annuity. It means that deposits are being made at the end of the relevant…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.