Today is your 23rd birthday.  Your aunt just gave you $1,000.  You have used the money to open up a brokerage account.  Your plan is to contribute an additional $2,000 to the account each year on your birthday, up through and including your 65th birthday, starting next year.  The account has an annual expected return of 12 percent.  How much do you expect to have in the account right after you make the final $2,000 contribution on your 65th birthday?

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: It is assumed that, 10.5 years from now.

Q: Francine currently has $70,000 in her 401k account at work, and plans to contribute $7,000 each year…

A: Current amount (PV) = $ 70000 Annual deposit (P) = $ 7000 Interest rate (r) = 6% Number of annual…

Q: Your great - uncle Claude is 82 years old . Over the years , he has accumulated savings of $ 80,000…

A: Investor will deposit his savings and draws equal annual amounts for next 10 years. The equal annual…

Q: At what interest rate will you need to invest in the current IRA account balance in order to achieve…

A:

Q: How much money must you deposit in an account each year to fund your children’s education? Your…

A: Information Provided: College expenses = $45,000 Interest rate = 5%

Q: Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your…

A: First contribution amount = Current Salary * Contribution % = 41000 * 8% = $3280

Q: On her 23rd birthday. an engineer decides to start saving toward building up a retirement fund that…

A: a. The calculation is: The formulae snip is shown as:…

Q: You would like to have $8,000.00 in 15 years for a special vacation following graduation by making…

A: Using the PMT function in excel

Q: Your friend is celebrating her 30th birthday today and wants to start saving for her anticipated…

A: The process which helps a person in determining the amount required at the time of retirement and…

Q: Your great-uncle Claude is 82 years old. Over the years, he has accumulated savings of $80,000. He…

A: Here we can use the concept of annuities. In finance annuities is a series of payments/receipts that…

Q: Assume that you are 30 years old today and that you are planning on retirement at age 65. Your…

A: Given: Particulars Amount Years 30 Retirement age 65 Current salary $45,000 Growth rate…

Q: Mr. Lau is updating his estate plan for himself and his family. He would like to provide an income…

A: Life insurance provides financial coverage provided by insurance companies after the death of…

Q: Joe Doe is currently 65 years of age. He is currently drawing $20,000 a yearout of his IRA. He…

A: Person JD needs to have some amount of money in his account today to draw $20,000 at the beginning…

Q: Jane just turns 30 years old and wants to start a savings plan, where she contributes $X every month…

A: Given:

Q: Today is Hanan 23rd birthday. Starting today, Hanan plans to begin saving for her retirement. Her…

A: Annual Deposit =$1000 Amount Provided by her aunt = $10000 Years(n) = 42 Inteerst Rate(r) =10% =…

Q: Today is your birthday and you decide to start saving for your retirement. You will retire on your…

A: Solution- Amount to be deposited every year=$700000Interest for 1 year…

Q: You are saving for retirement. To live​ comfortably, you decide you will need to save $4 million by…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Carol wants to have $500,000 when she retired in 25 years.  Her credit union has an ordinary annuity…

A: GIVEN, FV = $500,000 N=25 M=12 R=4%

Q: You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a…

A: Given, Future value is $8,000 Present value is $4,000 Rate is 6%

Q: In 20 years, Hannah would like to have $30,000 in an account that earns 4.2% compounded monthly. How…

A: In the given question we need to compute the Deposit today so that Hannah will have $30000 at the…

Q: As part of your financial planning and to supplement your retirement, you decided to save $3000 at…

A: Future value is the expected value of the current amount at a future date at a given specific rate…

Q: You’ve landed your first job after graduation. Although retirement may seem like a long way off, you…

A: contribution =$7000 per year  interest rate =6% Period =35 Future value FACTOR =(1+r)n-1/r…

Q: Steven plans to contribute $300 to his "super unrealistically high" savings account at the end of…

A: Here,

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: Future value required (FV) = $ 200,000 Interest rate = 5% Monthly interest rate (r) = 5%/12 =…

Q: You want to be able to withdraw $35,000 from your account each year for 15 years after you retire.…

A: Given, Amount required each year after requirement us $35000. term of payment is 15 years Rate of…

Q: Today is your 22nd birthday and you have just started your first job out of college. You decide that…

A: The compounded value of each payment made over common interval of time is called an annuity and its…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

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

Q: For your 21st birthday, your grandfather offers you a gift of $1,000 today. However, you have the…

A: Given two alternatives are: Receiving $1500 after three years Receiving $3000 after five years…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

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

Q: You want to be able to withdraw $35,000 from your account each year for 25 years after you retire.…

A: Given Information:- in the question, you want to withdrawal $35000 each year from you bank account…

Q: Tom plans to save $2,000 for each of the next ten years, starting tonight when he will write his…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: You have $34,256.85 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Using NPER function in excel, this can be ascertained and the following inputs are used for…

Q: Your mom asked your opinion if she will be joining the cooperative in her office. She wants to know…

A: Monthly payment is made at the beginning of the month. Payment made at the end of the month is…

Q: Today is your birthday and you decide to start saving for your retirement. You will retire on your…

A: Calculate the present value of amount required after retirement at the age of retirement as shown…

Q: You are graduating in two years and are thinking about your future. You know that you will want to…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: You are working for a finance firm and a client comes to you and wants to know how much money they…

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

Q: You are planning to save for your retirement during the next 30 years. You want to be able to…

A: EAR = (1+apr/n)^n - 1 EAR = (1+8%/12)^12 - 1 = 8.299951% Now let us find out the present value of…

Q: You turned 22 today and you want to retire on your 58th birthday.    Starting with the day of your…

A: Present value is defined as the current value of future sum of the cash flow stream or money, which…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: Solution- Present value of future withrawal ason 10.5 years=Monthly withdrawal ×Present value…

Q: Your great-uncle Claude is 82 years old. Over the years, he has accumulated savings of $80,000. He…

A: Given information: Present value $80,000 Number of years is 10 Interest rate is 10%

Q: Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans…

A: We need to calculate future value of investment by using this formula FV = PV(1+i)n where FV =Future…

Q: A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now…

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

Q: Mr. White is updating his estate plan for himself and his family. He would like to provide an income…

A:

Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: This month you want to give your son $500.00 to help pay for University. You plan to make these…

A: In finance, a series of cash flows at equal time intervals for a specific period is known as an…