Manuel plans to set aside money for his young daughter’s college tuition. He will deposit money in an ordinary annuity that earns 5.4% interest, compounded monthly. Deposits will be made at the end of each month. How much money does he need to deposit into the annuity each month for the annuity to have a total value of $72,000 after 16 years?

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A: Given data; rate of interest = 4% payment after retirement= $20,000 number of years after retirement…

Q: Adam purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Semi Annual Payment  $              1,500.00 Time Period (years) 8 Interest rate 4% Monthly…

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Q: Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $750,000 in his retirement…

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Q: To save money for her son's college tuition, Nicole invests $96 every month in an annuity that pays…

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

Q: Robert wants to deposit $300 into a fund at the beginning of each month. If he can earn 10%…

A: Given information : Monthly deposit = $300 Interest rate = 10% Tenure = 6 years

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A: Given: Future value is $60,000 Years = 17 APR = 3.7%

Q: James plans to fund his individual retirement account, beginning today, with 20 annual deposits of…

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

Q: Starting on his 25th birthday, Jason makes 20 semi-annual payments of P15,000 each in a savings…

A: Compound interest refers to the interest that is calculated on a deposit or loan on the basis of an…

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: Siri plans to retire when her simple annuity savings account has enough money to receive 10000.00…

A: We need to use excel FV function to calculate future value of payment and NPER function for…

Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: Payout annuity is the amount that an investor receives at a regular interval after a certain period…

Q: Manuel is preparing for an income fund for his retirement. He wants to receive P 15 500 at the…

A: Let the amount to deposit now = X Monthly payout (M) = P 15500 n = 25 years = 300 months r = 10.5%…

Q: Karen deposits 300 each month into an annuity that pays 8% annual interest at the end of each year.…

A: Future value of annuity =PMT [{(1+i) n-1}/i]*(1+i) Where i=periodic interest rate n=number of…

Q: Edgar wants to have $600,000 in his retirement account in thirty years.if he begins with a single…

A: Paying someone or something, or being compensated, is an event or a procedure.

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A: Present value of annuities will give what is cash amount to be paid today.

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A: The annuity payments that are made at the beginning of the year are called annuity due and the ones…

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

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

Q: Jennifer's pension plan is an annuity with a guaranteed return of 6% per year (compounded monthly).…

A: Here, Jennifer is depositing $300 monthly in an account at a rate of 6% per year for a period of 35…

Q: At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8%…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: Your grandmother set up an annuity, in which she will receive a monthly payment from the bank of…

A: The present value of an annuity is the present value of a series of cash flows at a certain rate of…

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

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

Q: Zachary has opened a retirement account that will pay 4% interest each year. He plans to deposit 8%…

A: Interest Rate = 4%   Year N (Time to last deposit) Salary Sample Working Deposit Sample Working…

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

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

Q: Jesse wants to have $1,400,000 in his retirement account 45 years from today. If his account earns…

A: For amortizing loans, the monthly deposits formula is: Loan Payment (P) = Amount (A) / Discount…

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A:

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A: Here, Withdrawal Amount on 18th Birthday is 1,000,000 pesos First deposit made after one month of…

Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: The annuity is a series of cash flow wherein an equal amount is paid every period.

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: How much money does she need to pay into the annuity each quarter for the annuity to have a total…

A: Ordinary Annuity: These are payments made at the period end regularly for a period of time. The size…

Q: Billy plans to deposit $200 into a bank account at the end of every month.  The bank account has an…

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Q: Metehan Atay invests 550 pounds per week in the bank for an investment that will earn him 20% per…

A: An annuity is a sequence of periodic cash flows with a fixed amount at equal time intervals over a…

Q: Aziz is planning to attend college when she graduates from high school four years from now. She has…

A: Periodic Amount = 3570+5550 = 9120 Interest Rate = 8.5%/2 = 4.25% per semi annual period Time Period…

Q: Salem wishes to withdraw AED 30,000 at the end of each year of the next 6 years from his bank…

A: Annual withdrawal amount (A) = AED 30000 n = 6 years r = 10%

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: Robin wishes to accumulate a sum of $450,000 in a retirement account by the time of her retirement…

A: The value of an asset at a future date is called future value.

Q: Cena deposits a certain amount of money into his family’s savings account at the beginning of each…

A: Future value = $ 100,000 Period = 4 Years Period in quarters = 4*4 = 16 Annual interest rate = 8%…

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: Jennifer’s pension plan is an annuity with a guaranteed return of 5% per year (compounded monthly).…

A: Introduction: This question has to be solved in two parts, one through finding the future value of…

Q: Gary decides to set up a retirement fund by depositing $300 at the end of each week for 29 years.…

A: Payment frequency is weekly. However, the interest rate is 2.11%, compounded semiannually. Hence we…

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Q: Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans…

A: We need to calculate future value of investment by using this formula FV = PV(1+i)n where FV =Future…

Q: To save money for her son's college tuition, Jane invests $104 every month in an annuity that pays…

A: Annuity is the number of payments made by a person at frequent intervals of time. Annuities are used…

Q: Edna invests $30,000 and buys an annuity that pays $2000 every 6 months (1st payment 6 months from…

A: Open MS Excel --> Go to formulas --> Use FV function(Future value) Calculate the future value…

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: Time value tells that money received today has more value than that of receiving the same value…

Q: If he deposits 2000 at the end of every year into a special account for seven years and the bank…

A: This problem can be solved in light of annuity and future value. Total amount in the deposit account…

Q: Jasdeep plans to deposit $150 at the beginning of each month for 20 years. If the account earns 7.2%…

A: In finance, the term annuity shows the sequence of periodic cash flows over a particular 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…