You deposit $4,500 per year at the end of each of the next 25 years into an account that pays  10 percent compounded annually. How much could you withdraw at the end of each of the 20  years following your last deposit? (The 25th and last deposit is made at the beginning of the 20- year period. The first withdrawal is made at the end of the first year in the 20-year period.)

Q: Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank…

A: Future value of Annuity: It is  the total value of annuity payments  accumulated at a specific  time…

Q: Daniel deposits $20,000 into an account earning interest at 6% per year compounded quarterly. He…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Sam Musso is planning to retire in 20 years. He can deposit money at 12% compounded quarterly. What…

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

Q: You invest $2,000 in a certificate of deposit that matures after nine years and pays 5 percent…

A: Calculation of Interest Earned: Excel Spreadsheet:

Q: Joe plans to deposit $300 at the end of each month into a bank account for a period of 3 yr, after…

A: To solve this question we have to first find the future value of monthly annuity of $ 300 after…

Q: You currently have $250,000 in your retirement account. What equal annual amount must you deposit…

A: Equal annual deposits into an account for a fixed number of times is called annuity. The future…

Q: An individual makes six annual deposits in a savings account starting one year from now that pays…

A: Let the annual deposits be "x". We know that FV of annuity = P*[(1+r)^n - 1]/r = x * [1.10^6 -…

Q: Your aunt promises to gift you $1,500 now, $1,700 one year from now, $1,900 two years from now, and…

A: The future value is reflective of the value of cash flows in the future after compounding them using…

Q: If you deposit $20,000 per year for 18 years (each deposit is made at the beginning of each year) in…

A:

Q: Suppose you deposit $2,500 at the end of year 1, nothing at the end of year 2, $750 at the end of…

A: Here, Interest rate =15% compounded annually To Find: Future value at the end of 5 years =?

Q: ones can deposit $5,000 at the end of each 6-month period for the next 12 years and earn interest at…

A: a) Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, P =Periodic payment i.e. $5000 n = no.…

Q: A person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate of 10…

A: We need to use future value of annuity formula to calculate amount after 6 years FVn =PMT(1+i)n -1i…

Q: A man deposits her annual bonus into a savings account that pays 8% interest compoundedannually. The…

A: In this question we need to calculate the amount in the saving account immediately after the fifth…

Q: If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of…

A: Saving Account is a type of financial service offered to general public by banks with limited…

Q: A man deposits $11,000 at the beginning of each year for 10 years in an account paying 5% compounded…

A: The process of compounding involves addition of additional interest into the amount that is already…

Q: you deposit $1,000 each year into an account earning 3% interest compounded annually. How much will…

A: Time value Value received today by an individual is of more worth than receiving the exact value in…

Q: Jones can deposit $5,000 at the end of each six-month period for the next 12 years and earn interest…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: A saver places GHc1,000 in a certificate of deposit that matures after 20 years and that each year…

A: Compound interest is the addition of the interest to the principal sum of a loan or deposit. It is…

Q: You must make a payment of $1,668.06 in 10 years. To get the money for this payment, you will make…

A: There will be 5 deposits on: 1. Beginning of Q1 2. Beginning of Q2 3. Beginning of Q3 4. Beginning…

Q: You place £1,000 on deposit at an annual interest rate of 10% and make regular contributions of £250…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: You are going to withdraw OMR5,000 at the end of each year for the next four years from an account…

A: Calculate the present value by using excel as follows: Present value is 16,198.60…

Q: You deposit $825 today in a savings account that pays 3.5% interest, compounded annually. How much…

A: Future value is the value of current value at a specified interest rate for given period. The…

Q: A man deposits ​$14,000 at the beginning of each year for 14years in an account paying 77​%…

A: The question is based on the concept of future value of annuity payment due. Future value of an…

Q: If the interest is deposited into a non interest bearing account B, what is the balance in account B…

A: The first investment is effectively a payout annuity where the interest amount is withdrawn each…

Q: How much money would you have to deposit for 5 consecutive years (equal annual deposits) starting…

A: Annual interest rate = 11% Annual withdrawal = P 120,000 Number of annual deposit = 5

Q: You deposit $5000 at the beginning of each year into an account earning 3% interest compounded…

A: Introduction: Annuity Due: It refers to the series or stream of equal payments made at the beginning…

Q: Anthony plans to deposit $500,000 now and $10,000 every 6 months for 5 years into an account.…

A: Deposit now (D) = $500000 Semiannual deposit (A) = $10000 n = 5 years = 10 semiannual deposits…

Q: If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of…

A: To solve this question we have to use the formula of Future Value of ordinary annuity. The formula…

Q: You wish to have $400,000 at the end of twenty-five years. In the last ten years, you contribute…

A: In this question one has to find the present value of the investment. The future value is given as…

Q: You make deposits of $300 each year for the next 17 years at 5 % compounded annually. How much is in…

A: Annual deposit (P) = $300 Interest rate (r) = 5% Period (n) = 17 Years

Q: If you deposit $25,000 per year for 13 years (each deposit is made at the end of each year) in an…

A: The question is based on the concept time value of money. The future value is defined as the value…

Q: You invest $3,000 in a certificate of deposit that matures after nine years and pays 5 percent…

A: If the interest is left to be accumulated then the compounding effect will come. That is interest on…

Q: Barbara makes four consecutive annual deposits of $2,000 in a savings account that pays interest at…

A: The question gives the following information:

Q: You deposit $3000 in an account that pays 88​% interest compounded semiannually. After 33 ​years,…

A: Amount deposited, P = $ 3,000Future value of P deposited in an account offering annual interest rate…

Q: You plan to make a series of deposits in an individual retirement account. You will deposit $1,000…

A: According to the time value of money concept, money available today has interest earnings ability.…

Q: For 12 years, at the beginning of every month, Elsa deposits $200 into a savings account. Once the…

A: The cumulative value of an investment is the entire amount it now possesses, including the money…

Q: If you deposit $110 every month for the next 7 years, with first deposit to be made today and all…

A: In this we have to calculate equivalent monthly compounding rate and calculate the future value.

Q: You are about to borrow $8,000 from a bank at an interest rate of 8% compounded annually. You are…

A: The money which is taken as a loan from the bank or from any financial institution is known as…

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: You wish to have $200,000 at the end of twenty years. In the last five years, you withdraw $1,000…

A: Solution- FV at the end of 20 years required =$200000Amount of withdrawal at the end of 5…

Q: If $20,000 is set aside for 4 years after 16 years. Uniform deposits starting 3 years from now and…

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

Q: Your bank account pays a nominal interest rate of 8%, compounded quarterly. You deposit $500 in the…

A: Here, Deposit today is $500 Deposit at the end of first year is $1,000 Interest Rate is 8%…

Q: A business man has an obligation to pay $ 8,000 four years from now, and another obligation to pay $…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: 35 years

A: SOLUTION:- General formula for future value when interest is compounded annually is FV=P(1+r)n…

Q: How much should you deposit at the end of each month in an IRA that pays 12% compounded monthly to…

A: To solve this question ,  first we have to find the amount that can pay us $ 90000 per year. Then we…