What lump sum of money must be deposited into a bank account at the present time so that $500 monthly can be withdrawn for five years, with the first withdrawal scheduled for six years from today? Interest is 9% compounded quarterly. Show cashflow diagram and complete solution.

Q: A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500…

A: Here, First Deposit is $10,000 Constant Decrease in payment is $500 Interest Rate is 15% Last…

Q: What lump sum of money must be deposited in a bank account at present time so that P 500 monthly can…

A: An annuity is a sequence of payments or deposits occurring at equal intervals of time for a given…

Q: The cash flows shown in the table below occur every six months (bi-annually) and have a total…

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A: Amount Deposited each year is P10,000 Time period is 9 years Interest rate is 14 % compounded…

Q: 800

A: Formula to calculate the future value of ordinary annuity is: FV = C*[(1+I)^n - 1/i] Where C is the…

Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…

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

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Q: . What lump sum of money must be deposited in a bank account at present time so that Php 500 monthly…

A: Monthly withdrawal (M) = Php 500 after 6 years (72 months) Number of withdrawals (n) = 5 years = 60…

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

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Q: Find the future value of $300 deposited at the beginning of every year, for 15 years if the bank…

A: The series of cash flows discussed here is a form of an annuity due wherein an equal amount is paid…

Q: If 6000 dollars is invested in a bank account at an interest rate of 8 per cent per Find the amount…

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

Q: use the appropriate formula to find the future value (in $) of $500 dollars deposited at the…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: With cash flow diagram. What lump sum of money must be deposited into a bank account at present time…

A: Semi annual withdrawal = $ 1500 Number of withdrawals = 10*2 = 20 Annual interest rate = 12%…

Q: A certain sum of money will be deposited in a savings account that pays interest at the rate of 6%…

A: The following information given in the question: Rate of interest : 6% compounded annually (I)…

Q: How much money must initially be deposited in a savings account paying 5% per year, compounded…

A: Formulas:

Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…

A: Future value of annuity due can be calculated by using this equation Future value of annuity due…

Q: What lump sum of money must be deposited into a bank account at present time so that $1,500 per…

A: Semi annual withdrawal = $ 1500 Period = 10 Years Number of withdrawals = 10*2 = 20 First withdrawal…

Q: You need to have 80,000 at the end of 7 years. To accumulate this sum, you have decided to save a…

A: Time Period = 7 years Future Value Required = 80,000 End of period deposits Interest Rate = 11%…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. The…

A: Future value is basically calculated by compounding the present value at a given rate.

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A: Withdrawals start at end of year 2 Interest Rate = 9% First Withdrawal = 50,000 Annual Increase =…

Q: cashflow diagram.

A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…

Q: What lump sum of money must be deposited into a bank account at the present time so that $500 per…

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A: In this we need to calculate the present value of all options.

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A: A1 = 2000 per year N = Time Period = 5 years End of year deposits A2 = 3000 per year Time Period = 3…

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A: Investment = 6000 Interest Rate = 9% Compounded Quarterly Number of compounding periods = 4

Q: Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12…

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Q: How much money should be deposited annually in a bank account for five years if you wish to withdraw…

A: We required for calculating an amount for 5 years from this time. Then, we need to determine the…

Q: What lump sum of money must be deposited in a bank account at present time so that Php 500 per…

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

Q: If you want to withdraw $35,000 at the end of four years, how much should you deposit now in an…

A: Cash flow diagram is a graphical representation of cash flow series over a period of time. It shows…

Q: t lump sum of money must be deposited into a bank account at the present time so that $500 per month…

A: Future withdrawal monthly depends on the monthly interest rate and period of withdrawal for which…

Q: If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from…

A: Present Value- The present value of an investment or amount is its value today. It is the current…

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A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

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A: Loan (L) = $10000 Interest rate = 12% compounded semiannually Duration = 3 years = 36 months We need…

Q: Dr. Anderson plans to make a series of gradient-type withdrawals from her savings account over a…

A: Withdrawals start at end of year 2 Interest Rate = 9% First Withdrawal = 50,000 Annual Increase =…

Q: How much money should be deposited today in an account that earns 5.5% compounded monthly so that it…

A: Amount after 3 years = $12,000 Interest Rate= 5.5% per annum Interest rate monthly =  5.5/12=…

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A: Cash flow diagram:

Q: A person deposits $100 per month into a savings account for 2 years. If $75 is withdrawn in months…

A: Cash flow diagram is needed.