receiving 25,000.00 pesos from his grandfather yearly and has decided to invest it next year to a fund manager with an average 12% rate of return per year. a. How much will Josh received in 7th year if he plans to add 5,000.00 pesos per year on the succeeding years? b. How much rate should he add in his ye

receiving 25,000.00 pesos from his grandfather yearly and has decided to invest it next year to a fund manager with an average 12% rate of return per year. a. How much will Josh received in 7th year if he plans to add 5,000.00 pesos per year on the succeeding years? b. How much rate should he add in his ye

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

See similar textbooks

Similar questions

Doris plans to save $5000 per year for the next 35 years. Her money will be deposited in a stock market index fund that has a 0.5% annual management fee. If this fund earns 6% per year, how much will Doris save by investing in this fund instead of an actively managed mutual fund that has a 1% annual fee? Compute your answer as a future amount at the end of year . Assume that payments are made at the end of year. The future equivalent of savings amount at the end of year 35 is ___.
Exactly six years ago, Jay started investing $10,500 per year in an account that earned 5.00% p.a. He just switched to a fund that will pay 6.00% p.a. If Jay continues to deposit $10,500 per year, how much will he have in his account exactly seven years from today?
Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the savings. If the estimated rate of return on the trust fund is 8%?
Laura invested $90 at the end of every month into an RRSP for 13 years. If the RRSP was growing at 4.20% compounded quarterly, how much did she have in the RRSP at the end of the 13-year period? How much money should Kimberly invest today into a fund that earns interest at 5.25% compounded quarterly, if she wants to receive $4,750 at the end of every 6 months for the next 6 years? Richard deposits $650 at the end of every month for 2 years and 3 months in a retirement fund at 4.04% compounded semi-annually. a. What type of annuity is this? Ordinary simple annuity Ordinary general annuity Simple annuity due General annuity due b. How many payments are there in this annuity?
Michael Jones plans to save $5,928 every year for the next eight years, starting today. At the end of eight years, Michael will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 10.6 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $enter the future value of investment rounded to 2 decimal places
Suppose you make an annual contribution of P9,993 each year to a college fund for a niece. He is 6 years now, and you will start next year and make the last deposit when he is 19. The fund is a money market account earning 6.74% per year. What will it be worth immediately after the last deposit?
Henry Quincy wants to withdraw $30,000 each year for 10 years from a fund that earns 8% interest. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately?