Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded annually. Who much will Kay's investment be worth in 25 years?
Q: 5. Suppose you won on a lotto and you decided to buy a condominium unit located in Davao City for…
A: The future worth formula is FV= PV(1+i)n , where the PV rises for each period into the future by a…
Q: How much money will be in a bank account at the end of 15 years if $100 is deposited today and the…
A: Compounding interest means the interest is calculated for the principal and after each period the…
Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…
A: First instance: Given , Principal = $60000 APR = 5.75% Time period = 2 years Thus, simple interest =…
Q: What is the present value of a $750 payment when interest is 6.75% in 2 years? $657.90…
A: we have interest in two years = 6.75% = 0.0675 we have formula for present value of the annuity as…
Q: How long will Mr. Gutierrez earn ₱750,000 if he wants to invest by depositing ₱13,315.42 at the end…
A: In the question, it is given that, The deposited amount at the end of every quarter is P13,315.42.…
Q: Find the accumulated future value of each continuous income stream at rate R(t), for the given time…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Gracie bought a CD for $810 that earns a 2.9% APR and is compounded quarterly. The CD matures in 5…
A: Given that, Present Worth (PW) = $810 rate = 2.9% or 0.029 (compounded quarterly) Time(t) = 5year
Q: You are quoted an interest rate of 6% on an investment of $1000. What is the value of your…
A: Here, it is given that an investment of $1,000 gives 6% annual interest rate that is compounded…
Q: Mohamed wishes to deposit BD10,000 to a bank that will guarantee BD15,938.48 after eight (8) years.…
A: Here we need to assume the interest rate she is expecting from the bank. Then following calculation…
Q: In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years.…
A: Given information, Future value (F)= ₱400,000 Interest rate (r)= 2% Compounding period (m)= 4…
Q: A business man borrowed P 200,000 and agrees to pay P 47,719.73 annually for X years at the rate of…
A: Given Borrowed amount P=200,000 Annual payment A= 47,719.73 number of years =X rate of interest =…
Q: which kind of shares would you expect to pay higher average return: shares in an industry that is…
A: Answer - Need to find - which kind of shares would you expect to pay higher average return: shares…
Q: A company plans to place money in a new venture capital fund that currently returns 13.05% per year,…
A: The effective annual rate gives you the actual return as it reflects the actual annual return of the…
Q: Q2) 2, You invest $3,000 for three years at 12 percent. a. What is the value of your…
A: Future value. It can be obtained using the below formula: “” is the present value…
Q: Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company…
A: ]In case of public limited company, the littlest subscription must be admitted in order to get…
Q: You can invest in an account that pays simple interest or an account that pays compound interest. In…
A: We need to solve the simple interest amount as well as compounding interest amount with given…
Q: The right expression to calculate how much money will be in an investment account 14 years from now…
A: Future value is the value of investment for the given time in future. It is calculated by F = P(1 +…
Q: Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is…
A: We know that, The Price of a zero coupon bond = F / (1+i)n Where, F = Face value, i = Rate or yield…
Q: First City Bank pays 9 percent simple interest on its savings account balances, whereas Second City…
A: Money is a commodity accepted by general consent as a medium of economic exchange. Here, we…
Q: You are going to invest $1,500 today in a fund today. After 10 years, you want to have exactly…
A: Principal = $1,500 Time =10 years Amount =$2,500 or Principal1+R10010=2500or 15001+R10010=2500or…
Q: How much money would you have to deposit for 5 consecutive years starting one year from now if you…
A: Present Value of an Annuity Investing in a future income stream, such as an annuity, gives you the…
Q: What is the present value of the right to receive $11,000 in four years at an interest rate of 10.0…
A: Given information, Future value (F): $11,000 Time period (t): 4 years Interest rate (r): 10% To…
Q: How long does it take an investment of P300,000 to double if it invested at 10% interest compounded…
A: The future value of a given amount invested is a function of interest rate, periods of investment,…
Q: How much should I expect a lump sum from a deal at the end of 3 years if I start investing today at…
A: *answer: Given, Annuity =5879 Time(n) = 3 x 4 quarters=12 quarters Interest (r) =0.09 compounded…
Q: earns an annual interest rate of 2.75%.
A:
Q: Suppose that an investor wishes to deposit an amount now so that in 30 years $1,000,000 will be in…
A: Let the amount deposited now be represented by P. Let F represents $1,000,000 which appears to be in…
Q: You were entitled to receive $5,000 at the end of six months for the rest of your life. If the…
A: (Q) You were entitled to receive $5,000 at the end of six months for the rest of your life. If the…
Q: Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company…
A: Accounting cost is the cost that is recorded under accounts and includes a payment of money.…
Q: Suppose that $5,000 is placed in a bank account at the end of each quarter over the next 9 years.…
A: GIVEN P = $5000 No. of periods (n)= 9*4 = 36 compounded = 14%
Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…
A: Endowment each month = 10000 Time = 10 years Interest rate = 14 % compounded semi annually Monthly…
Q: How much must be deposited at the end of each year into an account that earns 4.0 percent interest…
A: Given information, Future value (F): $80,000 Interest rate (i): 4% Time period (N): 6 years To…
Q: How many years will it take to triple your investment of $5,000 if it has an interest rate of 10%…
A: Information given to us is:- Investment = $5000 Interest rate = 10% compounded annually We have to…
Q: Roy wishes to have P 1,000,000 in a certain fund at the end of 5 years. How much should he invest in…
A: Future value (F)= 1,000,000 Time = 5 year r = 0.22 P = Initial investment
Q: How much will be in a bank account at the end of five years if $2000 is invested today at 12 percent…
A: Answer: Given, Principal = $2000 Interest rate per annum = 12% Number of years = 5 The following…
Q: QUESTION 6 What is the net present value of receiving $250 in 5 years from now if the interest rate…
A: Present value is the current worth of a future sum of money given a specified rate of return.
Q: Need asap... If you invest $750 at an interest rate of 7% compounded annually how much would the…
A: Given:Present worth (PV)=$750Interest rate=r=7%Number of years= n=5 years
Q: 4) You invest $75,000 into an account and withdraw all funds from the account when it reaches…
A: An effective annual interest rate is the genuine return on a savings account or other…
Q: You plan to retire in 35 years and can invest to earn 6.85 percent. You estimate that you will need…
A: The term cash flow refers to the net amount of cash and cash equivalents being transferred in and…
Q: You invested $24031 for 13 years at 4.89% per annum. How much more would you receive at the end of…
A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…
Q: interest rate is 18% per year, compounded quarterly, what is the effective quarterly interest rate?…
A: Formula for converting the stated interest rate to the effective interest rate. The effective…
Q: Determine the principal P that must be invested at rate r = 3 1 2%, compounded monthly, so that…
A: Given that, A = $500,000 Rate of interest (r) = 3×1/2% = 7/2% = 0.035 Time period (t) = 17…
Q: At 8% annual interest compounded quarterly, how long will it take to become a millionaire if you…
A: Interest is the amount received in excess of the investment to an investor. The two methods of…
Q: Rafael invested $2,000 in a business that yields an annual interest rate of 10% compounded…
A: Continuous compounding formula: P(t) = Pert Where P(t) is valued at time t P is invested money (or…
Q: Suppose you are willing to pay $30 today for a share of stock which you expect to sell at the end of…
A: A dividend refers to a distribution of profits by a company to its shareholders. When a company…
Q: Inez wants to have $13,500 in 5 years. Use the present value formula to calculate how much Inez…
A: Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on…
Q: You wish to retire in 14 years, at which time you want to have accumulated enough money to receive…
A: Given the annual amount after retirement = $17000 Time after retirement = 19 years Interest rate =…
Q: How much money will be in a bank account at the end of 15 years if $100 is deposited today and the…
A: Compound interest refers to the interest on a loan or a deposit that is calculated based upon the…
Q: ) If we invest money for 10 years at 8 percent interest, compounded semiannually, we are really…
A: Interest rate per six month (i) can be calculated as follows.
Q: 4. a) You are considering investing $4,500 at an interest rate of 8.5% compounded annually for five…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: f you obtain a loan of ₱1M at the rate of 12% compounded quarterly in order to build a house, how…
A: Loan Amount = 1000000 Interest Rate= 12% N=10 Years Equal Payment Series =?
Suppose Kay inherits $250,000, which she invests today at a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- How much will be in a bank account at the end of five years if $2000 is invested today at 12 percent interest per annum, compounded yearly?What is the interest rate on your credit card if after 10 years you owe $40 for a pizza that had a price of $10? The interest rate is _______. A. a monthly rate of 15/12 percent B. 15 percent per year compounded monthly C. a monthly rate of 15/365 percent compounded daily D. 15 percent per year compounded annually SubmitHow much money will be in a bank account at the end of 15 years if $100 is deposited today and the interest rate is 8 percent compounded annually?
- find the present value of $175 perpetuity if the interest rate is 6 percent compounded quarterly. payments are at the beginning of the period.You plan to retire in 35 years and can invest to earn 6.85 percent. You estimate that you will need $82,000 at the end of each year for an estimated 30 years after retirement, and you expect to earn 4.5 percent during those retirement years. How much do you need to set aside at the end of each year to accumulate the money necessary for your retirement? (Assume year-end cash flows.) I will need this much at retirement _____________and will need to set aside ___________per year (at the end of each year.Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 3.8 percent. Assume semiannual compounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
- Which of the following has the highest future value? A. $100 saved for 2 years at 10 percent interest B. $130 saved for 2 years at 7 percent interest C. $120 saved for 2 years at 8 percent interest D. $110 saved for 2 years at 9 percent interestA bond with a face value of $7,000 pays quarterly interest of 2.5 percent each period. Twenty-two interest payments remain before the bond matures. How much would you be willing to pay for this bond today if the next interest payment is due now and you want to earn 8 percent compounded quarterly on your money? table of compound interest factors for discrete compounding periods when i=2%.How long will it take for an investment with an annual rate of return of 6% compounded annually to grow to ten times its current value? Answer neatly with proper explanation
- Now that young King Solomon has inherited the kingdom of Israel, and a massive amount of wealth that he can invest, he wants to plan for his "retirement." Since he doesn't know how long he'll live, and data on life expectancy is scarce, he reasons that he just wants a regular "cash flow" over the course of his life. With that in mind, how many shekels would he need to deposit at 20 percent interest compounded every year in order to be able to withdraw 50 shekels at the end of every year for seventy years?Find the present value of $750 to be paid four years from now when the prevailing interest rate is 10 percent, if interest is compounded annually.You wish to retire in 14 years, at which time you want to have accumulated enough money to receive an annual annuity of $17,000 for 19 years after retirement. During the period before retirement you can earn 8 percent annually, while after retirement you can earn 10 percent on your money. What annual contributions to the retirement fund will allow you to receive the $17,000 annuity? Use Appendix C and Appendix D for an approximate.