Thomas Finley wishes to become a millionaire. His money market fund has a balance of $183,204 and has a guaranteed interest rate of 10%. How many years must Thomas leave that balance in the fund in order to get his desired $926,000?

Q: Daniel Jackson is 30 years and wants to retire when he is 65. So far he has saved (1) $6,730 in an…

A: (1) Balance in IRA account=$6,730 Interest rate in IRA account=0.083   (2) Balance in money market…

Q: Jin decided to sell their farm and to deposit the fund in a bank. After computing the interest, they…

A: The provided information are: Withdrawal amount=P480000 for 8 years Starting at the end of 6 years…

Q: Angela has a trust fund that will mature in three years with a value of $15,000.  If this trust fund…

A: solution Given Future value $15,000 Period  (n) 3 years Interest rate (r) 5%…

Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…

A: Determine the present value of the annual withdrawals after 5 year of deposit using the Excel PV…

Q: On the day his son was born, a father decided to establish a fund for his son's college education.…

A: Annual withdrawal = 200,000 Period of withdrawal = 4 Years Interest rate (r) = 9% Number of annual…

Q: Paul Finley wishes to become a millionaire. His money market fund has a balance of $239,392 and has…

A: Future value = Present value * (1 + r)n   Future value = $1,000,000 Present value = $239,392  r =…

Q: Tatsumi invested Php 10,000 now for the college education of his three-year old son. If the fund…

A: Amount invested today (A) = Php 10000 Age of son today = 3 years He needs to withdraw for 4 years (m…

Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: A father, whose dream is to see his son grow up to be an engineer, plans to invest a certain sum…

A: given, Annuity ( A)= $15000 rate (r) =12% n = 9 (10th to 18 th year)

Q: Mohammed estimate that he will need RO 10,000 in 5 years to fund his university education. How much…

A: Compound interest is referred as the in interest calculated on principal along with all accumulated…

Q: hat do you think the future worth of her investment will be?  b. How much interest will she earn?

A: Interest: Interest is the income generated from investing an amount in a bank or any other financial…

Q: John needs to invest to help with his child's college fund. How much would he have to invest to have…

A: Given: Amount = $67,300 Years =13 Interest rate = 2.17%

Q: Donald will receive $450,000 from his trust fund in 20 years from today. He assumes he could get a…

A:

Q: Your parents would like to establish a trust fund that would pay annual payments to you and your…

A: In this question we require to calculate the present value of perpetuity as we will receive $500000…

Q: Mr. Bates is creating a college investment fund for his daughter. He will putin $850 at the end of…

A: The question is based on the concept of calculation of future value of period fix payment, which is…

Q: John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a…

A: Present Value:The value of today’s amount to be paid or received in the future at a compound…

Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…

A: The present value or discounting value method is an important part of the time value of money. It…

Q: Your brother, who is 6 years old just received a trust fund that will be worth $25,000 when he is 21…

A: For this we will need to calculate the present value of the fund. using present value = future value…

Q: An engineer planning for her retirement will deposit 15% of her salary each year into a stock fund.…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Bob has saved a total of ₱2,550,000.00 for retirement. He put the money in a mutual fund which pays…

A: We need to use annuity formula given below to calculate size of monthly withdrawal PMT…

Q: Under these assumptions, how much can he spend each year after he retires?

A: Future value: Future value is the amount derived from compounding the present amount or cashflows.…

Q: Your uncle has $375,000 and wants to retire. He expects to live for another 25 years and to earn…

A: Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate

Q: Mr. and Mrs. Maglalang decide to set aside ₱ 500,000 today and place it on a bank savings account…

A: Assuming college debut happens in 18th year, Duration of the fund (n) = 18 years = 72 quarters r =…

Q: Theresa figures she needs $200,000 in ten years to pull off an early retirement to an undisclosed…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today.…

A: GIVEN, PV0= $10,000 PV1= $15,000 PV4= $25,000 R= 9.6% N = 30

Q: Bo Newman will invest $10,000 today in a fund that earns 5% annual interest. How many years will it…

A: Time value of money:   Time value of money is a vital concept to the investors, as it suggests them…

Q: receiving 25,000.00 pesos from his grandfather yearly and has decided to invest it next year to a…

A: The present value is value without interest and future value is value with interest. Can be found…

Q: You have just received $175,000 from the estate of a long-lost rich uncle. If you invest all your…

A: Tax-free bond Tax-free bonds are the bonds that are issued by government enterprises to raise money…

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

A: Future value is expected value at a certain date in future at given rate of interest. Given: Present…

Q: Consider the following independent situations. a.    Mike Finley wishes to become a millionaire. His…

A: a. Future value factor = Future value / Initial fund = $1,000,000 / $92,296 = 10.83471 Find the…

Q: Kate Eden received a graduation present of $2,000 that she is planning on investing in a mutual fund…

A: Excel Spreadsheet:

Q: Assume that Dorothy Williams desires to accumulate $926,000 in 15 years using her money market fund…

A: We will follow the below steps to calculate the Compund interest rate-1.) Base amount is = $254222-…

Q: Carl invests $10000, partly in a secure GIC at 5% interest per year and the rest in a mutual fund…

A: Given, The amount of investment is $10,000 Interest rate in GIC is 5% Interest rate of MF is 7.5%

Q: A man invested P60,000 now for the college education of his 2-year old son. If the fund earns 14%…

A: Future Value: It is  value of money (expected to be worth in the future)  at a future date based on…

Q: Luis wants to have $2,000,000 in net worth when he retires. To achieve this goal, he plans to invest…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Sean expects to receive $300,000 in 5 years from a trust fund. If a bank loans money at an interest…

A: In the given case, Seam is expected to receive $300,000 in 5 years from a trust fund. He can borrow…

Q: Chris Silvers Is 39 years old and has accumulated $128,000 In his self-directed defined contribution…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: After several years of working, Katy has saved $125,000. If she invests that $125,000 in a savings…

A: Investment = $ 125000 Annual interest rate = 4% Period = 15 Years

Q: Mr. Blochirt is creating a college investment fund for his daughter. He will put in $850 per year…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: money at the end of ten years

A: Future value is the amount of current assets at some future date on the basis of the assumed growth…

Q: Your grandparents would like to establish a trust fund that would pay annual payments to you and…

A: In this question we need to compute the amount parents need to deposit in a trust so that we will…

Q: If boo start investing P30,000 now in a trust fund that pays 4% compounded quarterly. How much money…

A: Use the Excel FV function with the following inputs to determine the value of investment. RATE = 1%…

Q: Mr. Blochirt is creating a college investment fund for his daughter. He will put in $7,000 per year…

A: In this question we need to compute the amount of money Mr. Blochirt daughter have when she starts…

Q: A man invests P10,000 now for the college education of his 2-year old son. If the fund earns 14%…

A: We can define effective interest rate as that rate which has been adjusted for the effect of…

Q: Jackbought a lottery ticket and won €100,000. He wants to finance his newly born daughter and…

A: As per the given information: Amount of deposit - €100,000 Interest rate - 5% Period number of years…

Q: Tatsumi invested Php10,000 now for the college education of his three-year old son. If the fund…

A: First, we compute the Future value of the initial investment. On the basis of this future value, the…

Q: A first-year engineering student wants to have $30,000 at graduation 4 years from now to buy a new…

A: Given: Future value (FV) = 30,000 Present value (P) = 10,000 Interest rate = 12%

Q: You planned to retire after 20 years your goal is to create a fund that will allow you to  receive…

A: first we will calculate the present value of the retirement fund and then use the amount as future…