sara wants to deposit equal payments in BDO at the end of every month so that her daughter, Duchess, can withdraw a million pesos on her 18th birthday. She will make the first deposit one month after Duchess' 6th birthday. If interest is 15% compounded annually, what is the amount of the monthly payment?

Q: Tracy wants to have $400,000 when she retires in 40 years' time. How much should she deposit at the…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If…

A: Since more than one question is posted at a time. Answer for first question is only provided. Please…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $225/month into…

A: Annuity refers to series of annual payment which is paid or received at start or end of specific…

Q: Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new…

A: Monthly payment The minimum amount needed every month to be paid by an individual.

Q: John and Rosamond want to retire in 15 years and can save $110 every three months. They plan to…

A: Individuals save for retirement using various instruments in order to have a sufficient amount…

Q: Gabriel is able to save 10,000 pesos every month from his salary. If he decides to invest in a…

A: >Future value of any amount invested is the sum total of amount invested and the interest earned…

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1-year old daughter starting…

A: Present worth will be the difference between total present worth of cash inflows and total present…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $150/month into…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: A man is planning to retire in 25 years. He wishes to deposit a regular amountevery three months…

A: Excel Spreadsheet: Excel Workings:

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

A: Compounding refers to the factor that allowed investors to generate higher returns on the investment…

Q: Kym plans to deposit $100 in an account at the end of each month for the next five years so that she…

A: The monthly payment is $100 for the next five years at 6% compounded monthly. Future value of an…

Q: Karen deposits 700 each month into an annuity that pays 12% annual interest at the end of each year.…

A: solution given Deposits each month (p) 700 Rate of interest (r) 12% Time period…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $225/month into…

A: Calculation of Money in the Account in 7 Years:The money in the account in 7 years is…

Q: Ginny has already accumulated $15,000 in her RRSP. If she contributes $2,000 at the end of every six…

A: Annuity refers to series of equalized payments that are made at end or start of specific interval…

Q: ones can deposit $5,000 at the end of each 6-month period for the next 12 years and earn interest at…

A: a) Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, P =Periodic payment i.e. $5000 n = no.…

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

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

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: When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest,…

A: Using PMT function in excel

Q: Freya plans to invest $1,600 every six months for 25 years. How much will this investment be worth…

A: Given information: Investment every 6 months : $1,600 Time period : 25 years Rate of interest : 8.2%

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

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

Q: Kyla wants to have an annuity payment of $400, at the end of each 6 months. Use the appropriate…

A: Amount of Annuity payment(PMT) is $400 Time period 14 years or 14*2 = 28 semi- annual periods…

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.

Q: How much should Manvir have in a savings account that is earning 3.50% compounded semi-annually, if…

A: Present value of an investment is the sum total value of all deposits in today's period that are…

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

A: in this we have to calculate future value FACTOR and than future value from that.

Q: TaraCutler is newly married and is now preparing a surprise gift of a trip to Europe for her husband…

A: Computation:

Q: Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

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

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: Kelly Malone plans to have $50 withheld from her monthly paycheck and deposited in a savings account…

A:

Q: A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months…

A: Annual payments he will receive = $95000 Time period = 18 years  Interest rate = 8% Compounding =…

Q: Iris expects to receive $1,000 at the end of each of the next three years. She will deposit these…

A: Payments = 1000 Semi Annual Compounding, Time Period = 3 years * 2 = 6 semi annual periods Interest…

Q: Diane wants to receive annuity payments of $2500 at the beginning of each quarter for eight years.…

A: The present value of annuity refers to the current value of the future payments from the payment…

Q: As part of her retirement planning, Mrs. Smith purchases an annuity that pays 16 % compounded…

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

Q: To pay for your child's education, you wish to have accumulated P15,000 at the end of 15 years. To…

A: Future value (F) = P15,000 Time period (n) = 15 years Rate of interest = 6% (compounded annually)

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: Annie would like a retirement income of $4,000 per month (beginning of month payments) for 23 years…

A: Given:

Q: Connie wants to have an annuity payment of $2000 at the end of every three months. How much should…

A: Present value of an annuity payment refers to the sum amount of money that will be required today in…

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at…

A: Period of first payment from now = 7 Years (i.e. 8-1 = 7 Years of age) Number of annual allowance =…

Q: Maria Anguiano's current salary is $80,000 per year, and she is planning toretire 25 years from now.…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Q: Ray wants to buy his son a car for his P21st birthday. If Ray’s son is turning 16 today, and…

A: Future value= Payment per month * [{((1+Interest rate)^(Number of periods))-1}/Interest rate]…

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

A: Annuity means series of finite no. of payments which are same in size and made in equal intervals…

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: İhsan wants to pay the 50,000 TL loan he received from the bank in annual installments of 2,500 TL…

A: The loan refers to the fund provided by the lender to the borrower at a certain interest rate for a…

Q: Tess wanted to have P100,000 on her bank account at the end of 8years. She plans to deposit an…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: Soledad decides to save P2,700 at the end of every 6 months, which is the amount paid into her…

A: Future Value = P x [{(1 + r)^n} - 1] / r Here, P = Periodic Payment i.e. P2700 r = Periodic Interest…

Q: Mae expects to receive $1,000 at the end of each of the next three years. She will deposit these…

A: Mae expects to receive at the end of each of next three years = $1000 She will deposit these…

Q: Emily Dorsey’s current salary is $90,000 peryear, and she is planning to retire 22 years from…

A: Formula to calculate accumulated interest: A=P1+rnn×tWhere,A = final amount P = initial principal r…

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: 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…

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.