You earn $500 a week at your new job and would like to invest 20% of your income into an account paying 18% annual interest. How many years will it take you to have $1,000,000?
Q: suppose you want to have $700,000 for your retirement in 35 years. your account earns 8% How much…
A: Annuity- refers to a series of periodic payments made at equal time intervals. This financial…
Q: Your friend plans to invest $1,000 per month into an account expected to have an effective annual…
A: Here, EAR is 6.2% Monthly payment (PMT) is $1,000 Required Amount (FV) is $100,000
Q: suppose you want to be able to withdraw $4,800 at the end of each month for the next 20 years. How…
A: The present value of the annuity factor is used when there is an equal series of cash flows and the…
Q: If you want to retire with $2,000,000 in 45 years and can earn a rate of 10% with monthly…
A: The retirement amount to be required (FV) is $2,000,000. The maturity period is (NPER) 45 years. The…
Q: You have $11,489.64 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: Given: Present value (PV)= $ 11489.64 PMT = $5000 Future value (FV) = $200, 000. Rate = 11% = 0.11
Q: suppose you want to make sure you have 2,000,000 when you retire in 35 years. what even annual…
A: We need to use future value of ordinary annuity formula to calculate the annual payment. The formula…
Q: A 45-year-old person wants to accumulate $750,000 by age 70. How much will she need to save each…
A: The question is based on the concept of calculation for the future value of annuity payments. An…
Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: Given: PV = Present value = $42,180.53 PMT = Annual payment = $5,000 Future value value = $250,000…
Q: The annual income from a rented house is $35,000. The annual expenses are $5,000. If the house can…
A: Annual Income = $35,000 Annual Expenses=$5,000 Net Cashflow =$35,000 -$5,000 =$45,000 Ending…
Q: Today you have $100,000 in your investment account, which will grow by 7.5% annually. If you keep…
A: Using excel NPER function
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 6% interest. How…
A: Using excel PMT function = PMT(rate,nper,pv,fv)
Q: If you save 400 per month for retirement in an account that earns 8% interest per year, compounded…
A: Given information: Monthly saving $400 Interest rate 8% Number of years is 36
Q: You have $35,009.41 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: According to the time value rule, dollar money available today is worth more than the same dollar…
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: Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have…
A: Present value is the current worth of the amount that is expected to be received in future date.
Q: You have $22,241.93 in a brokerage account, and you plan to deposit an additional $4,000 at the end…
A: Present Value = $22,241.93 Future Value = $220,000 Interest Rate = 10% Periodic Payment = $4,000
Q: Suppose Stephen has an account that will grow to $455,000.00 in 21 years. It grows at 6.7% annual…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: A 45-year-old engineer earning $110,000 per year wants to retire at age 70 with $1.75 million. The…
A: A loan amortization schedule is a table that helps in finding out how much of the periodic loan…
Q: Suppose you want to have $400,000 for retirement in 30 years. Your account earns 5% interest. How…
A: Computation as follows: Hence, each month deposit will be $480.62.
Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…
A: Future value of ordinary annuity(cash flow due at the end of year) can be calculated by using this…
Q: You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: You have 30 years left until retirement and want to retire with $2 million. Your salary is paid…
A: Future value (FV) is the value of a cash flow at a certain time in the future based on an assumed…
Q: $200 a week at your job and would like to invest half your earnings. What is the difference between…
A: Given information : Weekly earnings $200 Lower interest rate 8% Higher interest rate 12%…
Q: How many years will it take to reach your goal?
A: Year Opening Balance ($) Interest % Interest Amount ($) Additional Deposit ($) Balance at year end…
Q: If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of that…
A: In the given question we require to compute the future value.
Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…
A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. How…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: You just got your first engineering job. How much money would you have to save per vest the money…
A: Since the same amount is needed to be saved per month, it is an annuity. The future value of annuity…
Q: Suppose you invest $120 a month for 5 years into an account earning 9% compounded monthly. After 5…
A: Computation:
Q: Suppose you want to have $300,000 for retirement in 35 years. Your account earns 10% interest. a)…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: 0. You expect to earn 12% annually on the account. How many years will it take you to reach your goa
A: Information Provided: Present value = $40,000 Payment additional every year = $5000 Future value =…
Q: You have an investment that will pay you .63 percent per month. How much will you have per dollar…
A: Amount = Principal 1+r100n where Principal = invested amount Amount = principal + interest r = rate…
Q: money is in your account after 16 months?
A: Given: Investment amount = $3000 APR = 3% compounded monthly Since, Interest is compounded monthly,…
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How…
A: Future Value $ 6,00,000.00 Time Period 25 Interest Rate 10%
Q: If you save $500 per quarter for retirement in an account that earns 8% interest per year,…
A: Retirement planning wherein a fixed amount is saved for a definite period to reap the benefits of…
Q: A 45-year-old engineer earning $120,000 per year wants to retire at age 65 with $2 million. The…
A: a. given, FVA=$2,000,000 R=7% N=20 YEARS…
Q: You buy a $250,000 house and pay $50,000 down. The loan is for 25 years at 6% monthly. If you pay…
A: Using the PMT and NPER function in excel
Q: When you retire at 65, you wish to be able to have $3,000 each month for 25 years. How much would…
A: Firstly calculate the present value of annuity with $3000 as PMT and 25 years, use this present…
Q: I now have $12,000 in the bank earning interest of 0.50% per month. I need $22,000 to make a down…
A: Time value of money: Any amount invested today earns an additional income, called interest income,…
Q: Your best friend is saving $1,800.00 and will earn 0.17 percent per month. Determine the number of…
A: Compounding is a way to find the FV of present amount by considering appropriate rate or CVF for the…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: If you want to accumulate $400,000 and you have $17,000 saved now, how many years will it take if…
A: GIVEN, PV = $17000 FV = $400,000 A= $490 R=4% M=12
Q: You are going to retire in 40 years and currently have $100,000. What average annual return would…
A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…
Q: You have $300,000 saved for retirement. Your account earns 10% interest. How much will you be able…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: You buy a car for $34,000. You pay $10,000 down and finance the rest at 3% monthly over five years.…
A: Value of Car is $34,000 Down Payment is $10,000 Loan Amount (PV) is: Interest Rate (Rate) is 3%…
Q: If you have $50,000 in an interest-bearing savings account that pays2 percent annual interest, how…
A: Present value = 50000 Interest rate = 2% Days = 30 Assume 365 days in Year
Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 10% interest. How…
A: Future value (FV) = $ 700,000 Period = 20 Years Number of monthly payments (n) = 20*12 = 240…
You earn $500 a week at your new job and would like to invest 20% of your income into an account paying 18% annual interest. How many years will it take you to have $1,000,000?
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- You make $200 a week at your job and would like to invest half your earnings. What is the difference between earning 8% and 12% annually assuming you deposit the same amount for 35 years?Your new job offers a savings plan that pays 0.75 percent in interest each month. You can't participate in the plan, however, until you have 5 years with the company. At that time you will start saving $100 a month for the next 28 years. How much will you have in this savings account in 33 years? Round your answer to two decimals. $ Another perk of your new job is that, after 5 years with the company, you will also get an increase of $125 in your monthly salary. Assume you would stay with the company for 28 more years after getting the salary increase, and that you discount at 0.75 percent each month. What is this salary increase worth to you today? Round your answer to two decimals.You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $80,000 per year for the next two years, or you can have $69,000 per year for the next two years, along with a $25,000 signing bonus today. The bonus is paid immediately and the salary is paid in equal amounts at the end of each month. If the interest rate is 8 percent compounded monthly, what is the value today of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
- You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $70,000 per year for the next two years, or you can have $59,000 per year for the next two years, along with a $15,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 10 percent compounded monthly, what is the PV for both the options? PV Option 1$ Option 2$You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $66,000 per year for the next two years, or you can have $55,000 per year for the next two years, along with a $11,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 9 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) PV Option 1 $______ Option 2 $_______A 45-year-old engineer earning $110,000 per year wants to retire at age 70 with $1.75 million. The engineer has nothing saved and expects to earn 6% annually on the investment? What fraction of the salary must be invested each year to reach the goal?
- Suppose you want to have $400,000 for retirement in 35 years. Your account earns 10% interest. How much would you need to deposit in the account each month?$If you want to accumulate $400,000 and you have $17,000 saved now, how many years will it take if you pay $490 per month and your investment pays 4% compounded monthly?You have 40,000 in a brokerage account, and you plan to deposit an additional 5,000 at the end of every future year until your account totals 250,000. You expect to earn 12% annually on the account. How many years will it take you to reach your goa