Two people plan to invest $50,000. Matt is going to invest it in one lump sum and leave it in the account for 25 years to use for retirement. Sarah is going to invest $2000 per year for 25 years and will also use the money in the account for retirement.     Is it reasonable to expect that Matt will have more money in his account than Sarah does in 25 years if both accounts earn the same interest?

Q: Bing gave $800 to her cousin. As a token of gratitude, her cousin gave her $1, 520 at the end of the…

A: Details given are : Present value = $800 Future value = $1520 Time period = 1 year From above…

Q: Kathy and Mark Smith believe investing in their retirement is critical. Kathy began investing 20% of…

A: Given information: Total retirement savings amount is $1,450,000 Kathy’s investment is 4 times more…

Q: After receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in…

A: The future value of deposit is the value of the current deposits on a future date based on the…

Q: A civil engineer planning for her retirement places 8% of her salary each year into a…

A: To calculate the future worth we will use the future value of growing annuity formula as follows:…

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

A: The question is related to the annuity due. The details are given. The present value of annuity due…

Q: Calculate the return that Lin Shan is earning on her annuity.

A: Given, Investment - PV = 1000000 Payment - PMT = 60000/2 = 30000 years - N = 15 Period - m = 15*12 =…

Q: Twenty years ahead of her retirement, Kelly opened a savings account that earns 5% interest rate…

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

Q: Bob Katz would like to save $250,000 over the next 25 years. If Bob knows today that he will be…

A: Amount likely to be saved is $250,000 Interest rate is 4% Inheritance received in year -15 is…

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

A: The amount deposited in the fund is the present value of the annuity. It is the discounted value of…

Q: Mrs. Maria Alading borrowed 20,000 pesos from her friend Ms. Petra Hausen to pay the tuition fee of…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Alexis and Will are purchasing a home. They wish to save money for 10 years and purchase a house…

A: formula to find future value of annuity: fva=A×1+rmm×n-1rmwhere,A= annuityr = rate of interestm =…

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

A: The question is related to the annuity due. The details are given. The present value of annuity due…

Q: Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to…

A: Future value:

Q: Kate invested $1,200 4 years ago at 7% per year for 7 years. 2 years ago, she invested $2,000 at…

A: Here, Details of First Investment are as follows: Investment Amount is $1,200 Investment made 4…

Q: Peter has opened a retirement investment account and plan to contribute $6,000 at the end of each…

A: Expected return is calculated by excel function RATE. For RATE function, future value FV is the…

Q: Jill invested $1,000 each year into an account that earns 10% interest compounded annually to have…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: A father wants to help provide a college education for his young son. He can afford to invest…

A:

Q: Ji Hyun's generous grandfather invests $1,000 when she is born into an index fund that produces a 7%…

A: Calculation of money will be in account.

Q: Anthony is 30 years old and just received an inheritance from his parents' estate. He wants to…

A: Annuity is the term used for a payment if it is done repeatedly.

Q: Bill wants to give Maria a $520,000 gift in 6 years. If money is worth 6% compounded semiannually,…

A: From the question, Interest rate (i) = 6% Number of years (n) = 6 years FV = Future Value of gift PV…

Q: Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Keith is saving in a bank in order to purchase a new house in six years. She anticipates that the…

A: Future value refers to the value that an amount would assume at a future time period after…

Q: jesse recieved $5,000 from his grandmother when he turned 18. if he invests it at 5.5%(12), how much…

A: The question gives the following information:

Q: Sydney saved $50,000 during her first year of work after college and plans to invest it for her…

A: The future value method is an important tool of the time value of money. It helps in the…

Q: Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded…

A: Formula Future value = PV*(1+i)n Where PV - Investment i.e. $20,000 i - Semi annual interest rate…

Q: a young woman, 22 years old, has just graduated from college. she accepts a good job and desires to…

A: Dear student, we need to use excel NPER function to calculate number of years of deposit that…

Q: Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per…

A: The amount required for the retirement can be calculated by using the present value of annuity…

Q: Christina invested $3000 five years ago and earns 2 percent annual interest. By leaving her interest…

A: Invested 3000 N = 5  Interest rate = 2%   She is earning interest in her account and the amount of…

Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 5…

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

Q: A couple just got married and they are both 25 years of age.  They each plan to retire in 40 years…

A: Amount Required after retirement =200000 per  year After retirement years (n1) =20 Interest Rate(r)…

Q: A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a…

A: Here, To Find: Future value of annual savings (FV) =? Annual withdrawals made for 20 years after…

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

A: The mathematical equation is:

Q: A man who won 730,000 pesos in a lottery decided to place 50% of his winnings in a trust fund for…

A: A man won a lottery of worth = 730,000 pesos He invested 50% in trust funds for his son education =…

Q: John is nearing retirement and is considering an annuity offer from New York Insurance Corp, which…

A: Given Annuity receivable at end of each year = $30,000 Period = 20 years Rate of interest = 5%…

Q: Susan Orman wants to pay $1,500 semiannually to her granddaughter for 10 years for helping her…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: Gabrielle just won $2.5 million in the state lottery. She is given the option of receiving a total…

A: To determine which option Gabrielle should take from a strict economic point of view, we need to…

Q: Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year…

A: in this we have to calculate amount of retirement needed and calculate the present value of that.

Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…

A: The future value function can be used for determining the future value of a present sum, or the…

Q: Jamie wants to have $800,000 for her retirement in 25 years. How much should she save annually if…

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

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: Justin is twenty years old and has saved 50,000. He can invest it in a real estate venture that will…

A:

Q: John won a lottery. After taxes, he was able to take home his winnings worth $510000. He decides to…

A: We need to use compound interest formula to solve this problem A=P(1+i)n Where A=Future amount P=…

Q: Asha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social…

A: Data given: Annual requirement (atleast)= $45,000 Receipt from Social Security = $30,000 Investment…

Q: After paying for their children's college education, Amy and Randy have $15,000 in annual savings.…

A: Annual saving (A) = $15000 r = 7.5% per annum n = 15 years We need to find the future value of…

Q: Ann was given a gift of $10,000 by her grandparents. She has a choice between 2 accounts to invest…

A: Option 1- Present value of gift (PV)= $10,000 Interest rate (r)= 2.35% compounded monthly= 0.001958…

Q: Aini wishes to have 93,000USD to purchase a car in 6 years as part of her financial goals. How much…

A: Future Value = 93,000 USD Time Period = 6 Years Interest Rate = 8%

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Leonard wants to have $400,000 in his RRSP when he retires in 31 years. How much must he deposit at…

A: Here, Required Amount (FV) is $400,000 Time Period (n) is 31 years Interest Rate (r)  is 4.8%…