What is the future value of the 10% savings from earnings of $187.45 if it earns 5% annual interest, compounded monthly for 30 years? Use the compound interest formula to estimate the present value.

Q: What are the future value and the interest earned if $4000 is invested for 3 years at 8% compounded…

A: Investment Amount = 4000 Compounded Quarterly , hence interest rate will be divided by 4 and time…

Q: What is the present value of $1,000 paid at the end of each of the next 56 years if the interest…

A: Present value is the current worth of the amount deposited or received in future date.

Q: What is the future value of an initial $100 after 3 years if it is invested in an account paying 10…

A: Future value is defined as the current asset value at the date of future on the basis of an assumed…

Q: You are planning to save $1 million for retirement over the next 30 years.(a) If you are earning…

A: Excel Spreadsheet: Excel Workings:

Q: What is the future value of $10,000 invest today in a savings account with an interest rate of 12%…

A: An amount deposited in the account earns interest for the duration of the investment. The amount…

Q: What interest will be earned if $6000 is invested for 5 years at 11% compounded monthly? (Round your…

A: Using excel FV function

Q: What is the future value of $2,500 deposited for one year earning a 14 percent interest rate…

A: In the given question we require to compute the future value of investment from following details:…

Q: present

A: Formula to calculate Present value: PV = FV/(1+r)^n Where PV is the present value, FV is the fututre…

Q: suppose that $575.75 is invested in a savings account with an APR of 12% compounded monthly. What is…

A: Future value is the worth of the current amount in some future specified date at given interest…

Q: What is the final value of $20, 000 if left in an account that pays 10% interest per annum for 30…

A: The final amount after 20 years will be the future value of the initial deposit.

Q: What is the future value of $100 quarterly payments for 5 years assuming a 15% interest rate…

A: Convert 15% compounded monthly to its equivalent interest rate for quarterly interval. Here, 'R'…

Q: What is the future value in 12 years of $1,000 payments received at the beginning of each year for…

A: As a first step, let's gather all the information that question has to offer.Annuity investment = A…

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?

A: In the given question we need to compute the future value of $700 deposited today for one year at 4%…

Q: n annuity pays $1000 per year for 10 years. Inflation is 6 percent per year. ) If the real MARR is 8…

A: Real interest rate is reduced due to inflation but the actual rate is much larger.

Q: Find the present and future values of an income stream of $3000 per year over a 15-year period,…

A: Present Value = Cash Flows * [ ( 1 - e-rt ) / ( er - 1 ) ] Future Value = Cash Flows * [ ( ert - 1 )…

Q: What is the present value of $5,500 received 9 years from now using a 12% interest or discount rate,…

A: Given details : Future value = $5500 Time period (n) = 9 years Interest rate (r) = 12% = 0.12…

Q: Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at…

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

Q: If you invest 5000 dollars today at a compound interest rate of 10% compounded semi-annually, what…

A: Future value = Present value * (1 + rate per period )^ No. of period

Q: What is the present value of $10,000 to be received two years from today assuming an annual interest…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Suppose you are planning to save BDT 2,000 at the beginning of each of the next 10 years with 12%…

A: Annuity due is a term which describes a series of payments or savings that are equal at the…

Q: What is the future value at the end of year 2 of an income stream that starts out at $2400 per month…

A: Monthly Payout = 2400 Decreases by 75 Monthly Compounding Number of compounding periods = 12 Time…

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: Use the present value formula to find the present value of P30,000, if the interest rate is 16%…

A: Future value = P 30,000 Annual interest rate = 16% Number of compounding per year = 4 Number of…

Q: If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Q: What is the present value of an ordinary annuity if its value at the end of 10 years is Php 50 000?…

A: Annuity Amount PHP 50,000 Rate of Interest (12% /4) 3% Period (10 Years * 4) 40

Q: If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return?…

A: Future value = Present Value * (1+r)^n Where, r = rate of interest  n = no. of years

Q: If money is worth 10% yearly, compounded quarterly, what monthly savings is required monthly in…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: What interest will be earned if $6500 is invested for 7 years at 10% compounded monthly? (Round your…

A: Compound interest is a method of calculating the interest to be paid for using the money lent in a…

Q: What is the future value of an annuity due that promises $60,000 per year for 10 years if the…

A: Annuity is regular payment to be made to investor. There are two types of annuities 1. Ordinary…

Q: What is the present value of a $1,000 60-month annuity, starting 6 months from today, if r is 6% APR…

A: Present Value of Deferred Annuity refers to the concept which dictates the discounted value of a sum…

Q: What is the future value of $39,000 invested today at 9% interest in 20 years with interest…

A: Using the future value function in excel

Q: Suppose you were to receive $1000 at the end of 10 years. if your opportunity rate is 10, what is…

A: Discounting is a way to compute the PV of receivable amount by considering appropriate rate or PVF.…

Q: What is the present value of a growing perpetuity with the first monthly payment of $20 one month…

A: Given the following information: Monthly payment: $20 Growth rate: 5% Discount rate: 10%

Q: What is the future value of $850 deposited for one year earning an 10 percent interest rate…

A: The future value is the instalment payment of fixed amount at a certain date in the future with a…

Q: avings account that yields 12% compounded quarterly, what would our investment grow to at the end of…

A: The given problem can be solved using FV and EFFECT function in excel. FV function computes  future…

Q: Consider a $5,000 deposit earning 10 percent interest per year for ten years. What is the future…

A: Future Value (FV)Future value is the specific value or amount of an investment at a specific date in…

Q: What is the future value if the amount invested is 10,000 at 10% compounded quarterly for 5 years?…

A: Solution Given Present value 10000 Rate of interest 10% Compounding Quarterly…

Q: If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what…

A: Future Value is the value of the current assets or some amount that is invested today and amount…

Q: What is the future value of $400 deposited for one year earning an interest rate of 9 percent per…

A: The provided information are: Present value (PV) = 400 Rate of interest (i) = 9% Number of year (n)…

Q: the savings account that yields 12% compounded quarterly, what would our investment grow to at the…

A: The given problem can be solved using FV and EFFECT function in excel. FV function computes  future…

Q: What is the future value of $1,100 invested today at 5% interest in 3 years with interest compounded…

A: In given question we need to compute the future value of $1100 invested today at 5% for 3 years.