Suppose you want to have $300,000 for retirement in 20 years. Your account earns 4% interest. a) How much would you need to deposit in the account each month? b) How much interest will you earn?
Q: If your account earns 9% interest compounded monthly, how much will you need to deposit each month…
A: Present Value of Annuity: It represents the present value of a future stream of annuity cash flows.…
Q: suppose you want to have $700,000 for your retirement in 35 years. your account earns 8% How much…
A: Annuity- refers to a series of periodic payments made at equal time intervals. This financial…
Q: Suppose you want to have $500,000 for retirement in 30 years. Your account earns 9% interest. a)…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: You deposit $400 each month into an account earning 6% interest compounded monthly. How much will…
A: FV of annuity=P1+rn-1rwhere,P=Periodic paymentr=rate per periodn=number of periods
Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…
Q: Suppose you want to have $300,000 for retirement in 25 years. Your account earns 5% interest. How…
A: The monthly deposits to have $300,000 after 25 years, will be a form of an annuity as the same…
Q: If you save 400 per month for retirement in an account that earns 8% interest per year, compounded…
A: Given information: Monthly saving $400 Interest rate 8% Number of years is 36
Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest…
A: Future Value = $800,000 Time period = 25 years Interest rate = 7%
Q: You want to be able to withdraw $30,000 from your account each year for 25 years after you retire.…
A: in this problem you have to calculate present value of retirement amount and that will be retirement…
Q: uppose you want to have $800,000 for retirement in 30 years. Your account earns 9% interest. How…
A: The monthly deposit is also called the annuity in which the equal amount has been paid until the…
Q: Suppose you want to have $800,000 for retirement in 30 years. Your account earns 9% interest…
A: The amount that need to be deposited can be calculated using the formula of future value of annuity.…
Q: Suppose you want to have $400,000 for retirement in 30 years. Your account earns 5% interest. How…
A: Computation as follows: Hence, each month deposit will be $480.62.
Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…
A: Future value of ordinary annuity(cash flow due at the end of year) can be calculated by using this…
Q: Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5.1% interest. How…
A: Future value required (FV) = $400,000 Interest rate = 5.1% Monthly interest rate (r) = 5.1%/12 =…
Q: Suppose you want to have 800000 for retirement in 35 years. Your account earns 5% interest. hoe…
A: Amount that need to be deposit every month can be calculated using the formula of future value of…
Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…
A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…
Q: You are expecting to retire in 28-years and you want to retire with $10,000,000. How much you must…
A: Given information: Future value is $10,000,000 Present value is $122,000 Number of years is 28…
Q: You deposit $500 each month into an account earning 5% interest compounded monthly. a) How much…
A: The future value is the value of amount in future that has to paid or received at current or in…
Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest. a)…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, r = rate of interest per period i.e.…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. How…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: You would like to have $500,000 when you retire in 30 years. How much should you invest each quarter…
A: The future value of any deposits is the sum total of all the deposits made compounded at interest…
Q: Suppose you want to have $500,000 for retirement in 20 years. Your account earns 8% interest. How…
A: Future value of each month payment (FV) = $500,000 Number of years to retirement = 20 Number of…
Q: How much would you need to deposit in the account each month?
A: Annuity Payments: These are payments of equal intervals made. Examples of annuity payments include…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. a)…
A: Introduction Future Value: The value derived for the money invested today at a future point of time,…
Q: You deposit $100 each month into an account earning 4% interest compounded monthly. a) How much…
A: Amount Deposited Each month is $100 Interest rate is 4% Compounded monthly Time period is 15 years…
Q: You want to be able to withdraw $50,000 from your account each year for 25 years after you retire.…
A: Here, Annual amount to withdraw = $50,000 Time in years after retirement = 25 years Time to…
Q: Suppose you invest $120 a month for 5 years into an account earning 9% compounded monthly. After 5…
A: Computation:
Q: You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How…
A: Given, Amount withdrawn each year (P) = $20,000 Rate of interest (i) = 5% or 0.05 Number of years…
Q: You want to be able to withdraw $50,000 each year for 15 years. Your account earns 7% interest. a)…
A: Here, Annual Withdrawals (PMT) is $50,000 Time Duration is 15 years Interest Rate is 7%
Q: Suppose you want to have $300,000 for retirement in 35 years. Your account earns 10% interest. a)…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly? How…
A: To find the payment per quarter one can use “ pmt function “ in excel. To find the total money we…
Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…
A: ACCORDING TO THE RULE, WE WILL ANSWER THE FIRST THREE SUBPARTSQUESTION ONLY, FOR THE REMAINING…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 8% interest. a) How…
A: The amount to be invested each month will be compounded and will form a corpus und at the end of the…
Q: If you initially invest $3500 in an account that earns 4.7% interest compounded daily, how much will…
A: Initial investment (PV) = $3500 Interest rate (r) = 4.7% Number of compounding per year (m) = 365…
Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: You deposit $300 each month into an account earning 3% interest compounded monthly. a) How much will…
A: Monthly deposit (P) = $300 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 15…
Q: uppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest. How…
A: The provided information are: Future value (FV) = $600000Present value is (PV) = $0Annual interest…
Q: You want to be able to withdraw $30,000 from your account each year for 30 years after you retire.…
A: The amount of the deposit can be calculated by using the present value and future value of annuity…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: You want to be able to withdraw $25,000 from your account each year for 25 years after you retire.…
A: Here, Withdrawal Amount is $25,000 Time Period of Withdrawal (Withdrawal Period) is 25 years Time…
Q: You deposit $500 each monthinto an account earning 3% interest compoundedmonthly. a) How much will…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: You deposit $200 each month into an account earning 5% interest compounded monthly. How much will…
A: Future worth of the amount is referred as the worth of the currently deposited amount at some future…
Q: You want to be able to withdraw $40,000.00 from your account each year for 15 years after you…
A: Time Value of Money (TVM): It is based on a principle that the money in hand now has more value than…
Q: a. You are planning for retirement, and would like to have $1,000,000 in the bank when you turn 65.…
A: Compounding is a concept used in investing. In case of compounding, interest is earned on both the…
Q: You want to be able to withdraw $25,000 each year for 20 years. Your account earns 10% interest.…
A: Part A-C:Calculation of Amount in the Account, Total Money in the Account and Total Interest:A) The…
Q: You want to be able to withdraw $45,000 each year for 25 years. Your account earns 10% interest. a)…
A: Annual withdraw each year(P) = $45,000 Interest Rate(r) =10% Years(n) = 25
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How…
A: The question given is related to the annuity payouts, which refers to a series of payments paid over…
Q: You expect to retire in 25 years. After you retire, you want to be able to withdraw $3000 dollars…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Computation as follows: Hence, amount to be deposited in each month is $1515.02.
Q: You want $800,000 for retirement in 35 years your account earns 9% How much would you need to…
A: The question gives the following information:
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityCalculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.