suppose you have $5,000 in a mutual fund in your IRA. Suppose also that you put $4,000 into the mutual fund at the end of each year over the next 20 years. if the mutual fund earns 8.5% annually, how much will it be worth after 20 years?

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: ) Your parents have an investment portfolio of $400,000, and they wish to take out cash flows of…

A: Ordinary annuity is a type of annuity in which fixed interest payments are made at the end of each…

Q: A young man has decided to go into the business at the age of 25, he deposits a certain amount and…

A: N = Number of deposits = 11  Annual Increase in deposit = 50,000 Future Value Required = 30,000,000…

Q: (Calculating Annuities) You are planning to save for retirement over the next 30 years. To do this,…

A: Stock account investment per month (S) = $700 Bond account investment per month (B) = $300 Stock…

Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…

A: As per the time value of money concept, a certain amount held today is worth more than holding the…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a…

A: Using excel PMT & FV Function

Q: Suppose you invest $2000 into a mutual fund that is expected to earn a rate of return of 11%. The…

A: Investment (PV) = $2000 Rate of return (r) = 11%

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Amount = Principal (1+(rate/100))^n Initially, we deposit P 100,000 in a fund with a 25% annual…

Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…

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

Q: Number of periods: You invest $150 in a mutual fund today that pays 9 percent interest annually. How…

A: Future Value formula used: FV= PV(1+r)^n FV= future value = 300 (amount double = 150*2) PV= present…

Q: A pension fund is expected to produce a cash flow of $1,000 at the end of the upcoming year. This…

A: Here, Year 1 cash flows is $1000. This cash flow are increasing 10% for five years and after five,…

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Based on the number of years until your retirement, calculate the monthly savings required to build…

A: You are 32 years old and considering the retirement age of 60 years the no. of years left till…

Q: You deposit $13,000 annually into a life insurance fund for the next 10 years, after which time you…

A: The future value is the value of the amount in future that has to be paid or received at future.

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: If Joe has $1,000 and invests it into a mutual fund that returns 10%, what willI be his Future Value…

A: Future value = Present value*(1+rate)^no of years

Q: Assume that twenty years from now, you will need $50,000 and that your bank compounds interest at a…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: You save $800 a year into a 401(k) account that you invest in a mutual fund earning 9% per year.…

A: Given, Amount saved every year is $800 Rate is 9% Number of years is 25.

Q: how many years

A: The $50000  fund is a lump sum amount today. The $6000 withdrawl per year is ordinary annuity. To…

Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…

A: Future value of annuity due can be calculated by using this equation Future value of annuity due…

Q: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

A: The future value of the investment can be found by using the compound amount formula. The same is as…

Q: You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings…

A: The question is based on the concept of calculating the future value of deposits for retirement…

Q: If you invest the $10,000 you receive at graduation (age 22) in a mutual fund that averages a 12%…

A: Investments are the processes and methods through which money is saved and funds are invested in…

Q: An investor needs $17,000 in 13 years. (a) What amount should be deposited in a fund at the end of…

A: Amount needed " FV" is $17,000 Time period is 13 years Interest rate is 7% Compounded Quarterly To…

Q: You are planning to save for retirement over the next 25 years. To do this, you will invest $7,000 a…

A: The future value of an annuity is the future worth of a cash flow series at a particular time period…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a…

A: Using excel FV and PMT function

Q: How much will you have to save each year (to the nearest dollar)?

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: A $500,000 whole life policy is available for $5150 per year, payable at the beginning of the year.…

A: Life policy per year $ 5,150 Insurance amount ($5,150 x 10%) $ 515 Savings plan ($5,150 x 90%) $…

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: Retirement account interest = 7% Period of retirement account = 30 years Annual coupon = 6% Annuity…

Q: How much would a business have to invest in a high-growth fund to receive $14,000 every month for 6…

A: Investments are the ways by which individuals and corporations park or save their money and funds in…

Q: How much could you save for retirement if you chose to invest the money you spend on Starbucks…

A: As per the framing of the Question, 2 alternates are possible: 1 Invested the amount saved in 1st…

Q: A pension fund must pay out $1 million next year, $2 million the following year, and then $3 million…

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

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Compound interest formula : Final amount = Principal (1+interest rate/number of compounding…

Q: Chuck Tomkovick is planning to invest $25,000 today in a mutual fund that will provide return of 8%…

A: INTEREST RATE (RETURNS) 8% YEARS 10 PRESENT VALUE $25,000 PMT 0

Q: Suppose that you just turned 25, plan to retire at 65, and estimate that you will need $9,049 per…

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

Q: How much would a business have to invest in a high-growth fund to receive $13,000 every month for 7…

A: An annuity is the total of regular payments made over a period of time at a specific date, at a…

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: Annuity is the number of payments of an equal amount and is made at an equal interval of time. At…

Q: Suppose you are 35 years old and would like to retire at age 65. Furthermore, you would like to have…

A: Future value is amount that an investment will become after a certain period of time. It will…

Q: 4. Jacob invests $2500 a year in a mutual fund for 15 years. If the market value of the fund…

A: Annual investment (P) = $ 2500 Period (n) = 15 Years Interest rate (r) = 5%

Q: You make single investment of $500 in mutual fund earning 8% annual interest which is compounded…

A: Future Value: It is the  worth of an investment  or resource on a particular date from here on out,…

Q: A pension fund is making an investment of $100,000 today and expects to receive $1,600 at the end of…

A: The internal rate of return is the rate at which the present value of cash inflows is equals to the…

Q: At the beginning of each year, you deposit the following into a growthmutual fund that earns 6…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…