(Unknown Periods and Unknown Interest Rate) Consider the following independent situations.(a) Mike Finley wishes to become a millionaire. His money market fund has a balance of $92,296 and has a guaranteed interest rate of 10%. How many years must Mike leave that balance in the fund in order to get his desired $1,000,000?(b) Assume that Sally Williams desires to accumulate $1 million in 15 years using her money market fund balance of $182,696. At what interest rate must Sally’s investment compound annually?

Q: A woman has $216,000 to invest and wants to generate $12,000 per year in interest income. She can…

A: Investment = 216000 Interest Income per year = 12000 Rate on first fund = 4.5% Rate on second fund…

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: Vidhi is investing in some rental property in Collegeville and is investigating her income from the…

A: Given:

Q: Arona would like to receive $15,820 each year for the next 5 years, starting today.  Then she hopes…

A: Since payment is due today or at the beginning of the year, this is annuity due problem.  For…

Q: An engineer received a bonus of $12,000 that he will invest now. He wants to calculate the…

A: Compute the down payment.

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: Assume that 25 years ago your dad invested $240,000, plus $32,000 in years 2 through 5, and $45,000…

A: Investment amount = $240,000 Cash flows from Year 2 to 5 = $32,000 Cash flow from year 6 and on =…

Q: How much of their annual income do you recommend the Martins hold in some form of liquid savings as…

A: Ideally One should save, should invest and should hold in liquid assets. All these contribute to a…

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: Cris Li decided to go into the business at the age of 23, he deposits a certain amount and will…

A: Depositing a fixed amount of money in equal intervals of time for a certain period is called…

Q: What annual deposit into a sinking fund at 5% compounded annually will be needed to raise half a…

A: P500000 is needed at the end of 10 years. The Fair value at the end of 10 years = Annual Deposit x…

Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…

A: Generally, investment is done by individuals order to have sufficient money available for future…

Q: You have your own practice as a trusts and estates attorney anda dient has sought your assistance…

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

Q: year

A: Period Value of Investment 5% Factor Present Value of Cash Flow 1. 15,000 0.952 14,280 2. 15,000…

Q: Sabancı Family is planning to purchase a new house by the Bosphorus in İstanbul 4 years from now. If…

A: Compound interest formula: A=P1+rn where A=Amount accumulated at the end of investment period…

Q: Ashley projects that she can get $100,000 cash per year for 5 years on a real estate investment…

A: Present Value:-PV is the value that companies calculate for the proposed project and estimate their…

Q: A contractor would like to invest in a real- estate development project and expecting to get $20,000…

A: Compounding interest rate is the rate applied on the initial amount invested or borrowed and the…

Q: Thomas Finley wishes to become a millionaire. His money market fund has a balance of $183,204 and…

A: A money market fund is mutual fund that invests in liquid financial instruments. These instruments…

Q: Jasica Parker would like to have ​$48,000 to buy a new car in 7 years. To accumulate $48,000 in 7…

A: The monthly invested payment can be calculated using PMT function in excel PMT(rate, nper, pv, [fv],…

Q: Mr. Cruz wishes his daughter to receive P1, 000, 000 ten years from now. What amount should he…

A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: Bart is a college student who has never invested his funds. He has saved $1,250 and has decided to…

A: Money invested = $1,250 Annual rate of return = 4.19% Cost of fee = $24

Q: Morgan Quincy wants to withdraw $36,300 each year for 14 years from a fund that earns 11% interest.…

A: Given: Annual payment = $36,300 Interest rate = 11% Years = 14 years.

Q: An investor pays ₱1,100,000 for a mine which will yield a net income of ₱200,000 at the end of each…

A: Use the Excel RATE function with the following inputs to determine the interest rate on investment:…

Q: uppose you are 40 years old and plan to retire in exactly 20 years. 21 years from now you will need…

A: The concept of time value of money will have to be used here. As per the concept of time value of…

Q: You are a young urban professional in your late 20’s and want to save up for your wedding and other…

A: The question is based on the concept of interest calculation on investment based on Minimum Accepted…

Q: 16. Sonja, a rational investor, has $2,500 to invest for one year while she completes her profes-…

A: a. Based on probabilities A1.  0.4576+0.636=0.4×24+0.6×6=9.6+3.6=13.2 A2.…

Q: . $1,000 are deposited in the fund at the end of each of the first 10 years. This means that this is…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Imagine that Homer Simpson actually invested the ​$160,000 he earned providing Mr. Burns…

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

Q: A father wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now…

A: Net present value is defined as the discounted cash flow technique which applies to weight the items…

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: Marcus would like to save up $3 million for his retirement. He has chosen a stock index fund that…

A: Accumulated amount needed = $3 million r = 7.2% per annum = 0.6% per month n = 40 years = 480 months…

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: Walt is evaluating an investment that will provide the following cash flows at the end of each of…

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

Q: oday, you invest a lump sum amount in an equity fund that provides an 12% annual return. You would…

A: The question is based on the concept of calculation of present  value with compounding effect of…

Q: Find the required value for each problem. Show the formula used and the counts for each problem. 1.…

A: Because you have psoted multiple questions, we will answer the first question only, for the…

Q: Larry Mattingly turned 20 years old today His grandfather had establshed a trust fund that will pay…

A: Present value or PV is the discounted worth of a future cash flow taking into consideration the time…

Q: Franco plans to invest P1,500 in a mutual fund. If he earns 12% interest compounded monthly, to what…

A: Future value of annuity is referred as the value of group, which used to recur the payment in the…

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: Your grandfather left an inheritance for you of $100,00. However you can only drawdown on the…

A: Present value of fund can be calculated from annual cash flow using interest rate and period.

Q: Solve by using the sinking fund or amortization formula. Betty Price purchased a new home for…

A: Sinking fund is the method where interest payment would be paid semi annually, In this  we repay the…

Q: Laura needs to invest to help with her child's college fund. How much would she have to invest to…

A: Future Value = $63,400 Time Period = 13 Years Interest Rate = 2.21%

Q: Assume that Karen Williams desires to accumulate $1,000,000 in 15 years using her money market fund…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: 3. Tyler and Sarah earn approximately $93,000 a year after taxes. They have an investment portfolio…

A: An individual shall have at least i.e. 6 months of the amount after-tax income in the liquid…

Q: Your younger brother is very concerned about investment performance, but he is willing to tolerate…

A: Future Value: The value of a current asset, depending on the expected growth rate, at a future date,…

Q: Jean invests $1000 in Year 1 in a socially responsible fund, and doubles the amount each year after…

A: a) Computation:

Q: Saylor, who earned $152 906 profit from his gamble on bitcoin, decides to invest half of the money…

A: Given: Particulars Amount Profit earned  $152,906 Years  10 Interest rate 9.25%