wishes to accumulate P2,500 over a period of 15 yrs so that a cash payment can be made for a new roof on a summer cottage. To have this amount when it is needed, annual payments will be made into a savings account that earns 8% interest per year. How much must each annual payment be? Draw a cash flow diagram.

Q: How long will Mr.Andi's account have value in the future of IDR 3,000,000 at a rate of return of 6%…

A: Mr. Andi invests money IDR 100,000 annually and it has been assumed that the deposit is made at the…

Q: Callaway, Inc. needs $2.3 million 6 years from now to purchase a machine. Currently, the firm has…

A: Years 6 PMT 0 Future value 2300000 Interest rate 4.00%

Q: You would like to save for a car. You would like to have $20,000 saved in 4 years. You decide to…

A: Future value required (FV) = $ 20,000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 =…

Q: Suppose someone wants to accumulate $40,000 for a college fund over the next 15 years. Determine…

A: Given, The required amount is $40000. Term is 15 years

Q: An instructor plans to retire in exactly one year and want an account that will pay him P25,000 a…

A: The instructor is planning to retire in one year and wants to get P25000 each year for 15 years. The…

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

A: In this we have to calculate present value of ANNUITY FACTOR and from that we can get the six…

Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…

A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…

Q: A friend tells you she has saved for 10 years and has a present sum of $20,000, which earned at the…

A: We will use the concepts and formulas of time value of money to find the solution.

Q: ean needs $18,000 immediately as a down payment on a new home. He can borrow this money from his…

A: Periodic payment is calculated by present value of annuity formula.

Q: A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at "X"…

A: The repayment on a loan: A loan that is taken is repaid according to a repayment schedule that's…

Q: A new engineer wants to save up P1,000,000. He will contribute P5,000 annually to an investment…

A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an…

Q: You purchase a plot of land worth $52,000 to create a community garden. To do so, you secure a…

A: Monthly payment on the loan (M) = $365 n = 20 years = 240 months r = 8.54% per annum = 0.71167% per…

Q: A woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly.…

A: Here the deposits are made annually while the interest is compounded monthly. Thus we first need to…

Q: Homework/ An electrical engineer wants to deposit an amount P now such that she can withdraw an…

A: Investment is way to spend your money to get the required return out of it in a certain period of…

Q: Find how much money needs to be deposited now into an account to obtain $40,000 in 5 years if the…

A: Future value (FV) = $40,000 Period (n) = 5 Years Interest rate (r) = 7%

Q: An entrepreneur would like to buy a piece of equipment for his business. The equipment cost $50,000…

A: Equipment Cost = $ 50000 Annual Increase in cash flow = $ 20000 Years= 5 Internal Rate of return…

Q: Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to…

A: Present value of annuity is the current value of the future payments that are calculated using the…

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: An engineer who is saving for her retirement plans to deposit $500 every semiannually, starting…

A: Semi Annual Deposit = 500 End of period deposits Nominal Rate = 12℅ Quarterly Compounding N = 25…

Q: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual…

A: In this we have to calculate present value of all to get initial deposit.

Q: You are saving for a new house and you put $10,000 per year in an account paying 8%. The first…

A: Annual deposit (D) = $10,000 Interest rate (r) = 8% Number of deposits (n) = 3

Q: In five years, ₱1.8M will be needed to pay for a building renovation. In order to generate this sum,…

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

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: If Karen placed an amount of 9,700 Php in an investment that pays an interest rate of 12%,…

A: Investment = 9700 Php Interest rate = 12% Compounding = Semi annually Future value = 50,000 Php

Q: Calculate how much will Sonja have in a savings account 12 years if she deposits RM 3,000 now and RM…

A: Future value of amount includes the amount deposited and interest accumulated over the period of…

Q: Suppose you want to buy a home after 3 years and you will need $15,000 for that. You open a savings…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: You want to have $35,000 in cash to buy a car 3 years from today. You expect to earn 3.6 percent,…

A: In this we have to calculate present value of future value.

Q: If P8,000 is deposited in the bank each year for 10 years, how much annuity can aperson get annually…

A: Future value = p/r * ((1+r)n - 1) P = 8000 r = 12% N = 10 Future value = 140,389.88

Q: going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and…

A: Answer Cost of equipment = $22,000 Anual interest rate = 9.5% Quarterly interest rate = (9.5%/4)=…

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: Susan Bentley will purchase a home for $257,000. She will use a down payment of 20% and finance the…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: Consider two investments: Invest $1,000 and receive $110 at the end of each month for the next 10…

A: The future worth of both the options can be calculated as follows : Results obtained :

Q: Goldberg planned to build a P1,500,000-house after 2 years. How much should be deposited in a…

A: Amount To be deposited now is Present value = Future Value/(1 + Interest rate)n Where , Interest…

Q: A civil engineer wants to deposit an amount P now such that she can withdraw an equal annual amount…

A: Annuity is the stream of recurring cashflow. present value of annuity formula: PVA=A×1-1+R-NR…

Q: Calculate how much will Sonja have in a savings account 12 years from now if she deposits RM 3,000…

A: Given in the question: Rate of Interest 10% Period 12 Years Initial Deposit…

Q: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual…

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

Q: The Miller family wants to have $60,000 for future renovations for their home. They currently have…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: How much is the present value of a perpetuity of P1,000 payable semi-annually if money is worth  5%…

A: Present value of perpetuity is calculated for those securities from which keeps generating cash…

Q: Suppose you would like to have P25,000 saved 6 years from now to pay towards your down payment on a…

A: Future value of ordinary annuity(payments at end of year) concept is used to calculated the annual…

Q: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A…

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

Q: Your mother plans to join the employee's cooperative. She wants to know how much her money would…

A: The interest on the money invested is earned for period it is invested in the scheme. The interest…

Q: !

A: Compound Interest Compound interest refers to the interest that includes interest on principal as…

Q: How large of a repayment must an engineer make each year starting next year if she borrows $60,000…

A: loan amount = 60000 time period = 5 years interest rate = 8% here the payment will be repaid making…

Q: Suppose you decide to save P3,000 per month for the next three years.  If you invest all of these…

A: Here, Equal amount at equal interval (A) = P3,000 per month Time period in years (n)= 3 years Rate…

Q: Mr. Holzman estimates that the maintenance cost of a new car will be 3,750 the first year, and will…

A: Maintenance cost in year 1 (M1) = 3750 M2 = 6250 M3 = 8750 M4= 11250 M5 = 13750 M6 = 16250 r = 5.5%…

Q: You make monthly deposits of P100 into an annuity and after 30 years wish to accumulate P160,000.…

A: Interest is required to be paid on the amount loaned obtained by the borrower from the lender.…