uppose you're offered the following three accounts to invest  $10,000  for  20  years:  16%  simple interest,  8%  interest compounded monthly, and an annuity with quarterly payments of  $125  at  7%  interest compounded quarterly. Which is the best choice? Round your answers to the nearest cent. Part: 0 / 4

Q: If you invest $20,000 at an annual rate of 1% compounded continuously, calculate the final amount…

A: The question is based on the concept of Financial Management.

Q: You would like to have $74,000 available in 15 years. There are two options. Account A has a rate of…

A: Compound interest Equation : A = P(1 + r/n)n × t Where: A = Accrued Amount (principal + interest)…

Q: terest, compounded monthly, for 2 years. Use the compound interest formula to calculate the compound…

A: In this we have to use future value formula to get future value.

Q: You are offered three investments. The first promises to earn 10% compounded annually, the second…

A:

Q: Using Table 1-1 onpage 19, calculate the following:(a) The future value of lump-sum investment of…

A: Calculation of Future Value and Present Value:Excel Spreadsheet:

Q: If $17,000 is invested at 4.5% for 20 years, find the future value if the interest is compounded the…

A: Here, The future value is FV. The present value is PV. The rate of interest is r. The maturity…

Q: Assume that 1 year from now you plan to deposit €1,000 in a savings account that pays a rate of 8…

A: If the bank compounds interest annually, amount in the account 4 years from now will be =€1,000×FVF…

Q: You are going to deposit $3,400 in an account that pays .40 percent monthly interest. How much will…

A:

Q: Suppose that you deposit $200 at the end of each month into an account paying an expected annual…

A: given, monthly compounding N    =10 x 12 = 120I    =3%12PV   =0PMT =200   FV    = need to find

Q: If $18,000 is invested at 2.5% for 20 years, find the future value if the interest is compounded the…

A:

Q: Starting at the end of this year, you plan to make annual deposits of $7,000 for the next 10 years…

A: MS-Excel --> Formulas --> Financials --> FV

Q: You have your choice of two investment accounts. Investment A is a 13-year annuity that features…

A: Given data: For Investment A  Number of years = 13 monthly payment = $1500 interest rate = 7.5%…

Q: Give your answers to the nearest cent. A. Find the future value of $5,500 deposited for four years…

A:

Q: If you deposit ​$3,500 today into an account earning an annual rate of return of 11 ​percent, what…

A: Deposit today (P0) = $3,500 Annual rate of return (i) = 0.11 Period (p) = 40 years Account worth in…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Present value is the current value of a future amount that is to be received or paid out.     Future…

Q: ROUND ALL ANSWERS TO NEAREST DOLLAR How much will $10,000 grow to in 3 years, assuming an Interest…

A: Note: Since you have specifically used question number 10 to get solved, so we are solving the same…

Q: Would you prefer making a $25,000 investment that will earn interest at the rate of 6 percent…

A: Given: Investment amount is $25,000 The rate of 6 percent The calculation is shown below as,

Q: a. What is the effective annual interest rate based on a 6 percent nominal annual rate and monthly…

A: Effective Annual Rate: It is the annual rate of the investment considering the effects of…

Q: If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in…

A: Given, The amount invested today is $2000 The rate of interest is 7%

Q: You are looking at two investment options, A and B. Investment A is a 13-year annuity that needs an…

A: Compounding: Compounding is the method through which interest is added to both the principle balance…

Q: You decide to buy a house costing $400,000. You pay $100,000 down, and the remainder will be paid in…

A: Loans are a way through which individual finance their big expenditures. These types of loans help…

Q: What is the amount of each payment?

A: NOTE:  As per our policy, we only answer one question when many questions are provided. Therefore,…

Q: Your client currently has $7,600 in a 401K investment account. They contribute $200 a month into…

A: Current Value in Account = 7600 Monthly Contribution = 200 Monthly Compounding, Annual Return = 5.3%…

Q: When you retire 40 years from now you plan to make 10 withdrawals from your savings account. You…

A: Annuity refers to series of equalized payments that are received or paid either at start or end of…

Q: Suppose you deposit shs 5,000,000 into an account earning 4 percent interest, compounded monthly. a)…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: You are evaluating a growing perpetuity product from a large financial services firm. The product…

A: here is the formula for calculating the present value of growing perpetuity PV = A/(r-g) where…

Q: You plan to deposit $6,000 at the end of each of the next 25 years into an account paying 10.3…

A: Future Value: The worth of a asset today at a future date based on an expected rate of growth is…

Q: You plan to invest your saving of $15 000 in the next 12 years with two phases: in the first 7 years…

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

Q: annuity offers to pay you $1,000 per quarter for 20 years. If you want to earn a rate of return of…

A: Answer: Calculation of the maximum amount that you are willing to pay as a lump sum today to obtain…

Q: A person who invests $1,200 each year finds one choice that is expected to pay 4 percent per year…

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

Q: You are quoted an interest rate of 8% on an investment of $5 million. What is the value of your…

A: Interest Rate = 8% Investment = 5,000,000 Time Period = 6 years

Q: You plan to deposit $5,600 at the end of each of the next 20 years into an account paying 10.8…

A: making periodic payments is called annuity, thus we will be finding future value of annuity. We can…

Q: You have $41,000 in an account earning an interest rate of 4%. What are the equal beginning-of-month…

A: The present value of an annuity due formula uses the same formula as an ordinary annuity, except…

Q: Suppose that you plan to retire in 40 years. You put 1000 dollars in a bank account which sa per…

A: Effective rate of interest is the interest rate that is actually earned or paid. Effective rate of…

Q: You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirem…

A: Present Value = Monthly Cashflow X  [1-(1+i)-n]/i

Q: If $18,000 is invested at 2.5% for 20 years, find the future value if the interest is compounded the…

A: Computation of future value:Excel spread sheet:

Q: suppose you are offered the following three accounts to invest $10,000 for 20 years: 18% simple…

A: Since only two accounts are offered rather than three accounts. So, the best choice among the two…

Q: An investment promises to pay $5,000 at the end of each year for the next four years and $3,000 at…

A: Annuity payment is the series payment of a certain amount for a particular period of time. Under…

Q: You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a…

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

Q: Use the compound interest formula to calculate the compound amount (in $) for your investment.

A: Future Value: It is the future worth of the investment amount or a sum of money compounded at a…

Q: If $15,000 is invested at 3.5% for 20 years, find the future value if the interest is compounded the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How much will you need to invest annually to reach a savings goal of $300,000 at the end of 25…

A: n=25r=5%FV=300000

Q: An investment promises to pay $7,000 at the end of each year for the next six years and $3,000 at…

A: In the given case, an investment will pay $7,000 at the end of each year for the next six years and…

Q: You have your choice of two investment accounts. Investment A is a 6-year annuity that features…

A: Solution:- Given, Invest A is a 6-year annuity that features end-of-month = $3,000 Investment A -…

Q: How much money would you need to invest in B today for it to be worth as much as Investment A 14…

A: Time value of money concept states that the value of investment in current period has higher worth…

Q: Suppose I have the choice of investing $25000 in two different accounts:   Acct 1:  4.5%…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.