You have $12,500 you want to invest for the next 20 years. You are offered an investment plan that will pay you 7 percent per year for the next 10 years and 9.5 percent per year for the last 10 years. How much will you have at the end of the 20 years?

Q: You have $100,000 to invest today. At 5 percent per year, what sum can you withdraw at the end of…

A: Solution 1: True, Intermediate goals have a time frame of two to seven years.

Q: Jorge is considering an investment that will pay $4,650 a year for five years, starting one year…

A: Rate of return is an expected profit on an investment by an investor. It is a rate at which investor…

Q: You are scheduled to receive $44,000 in two years. When you receive it, you will invest it for 7…

A: Computation:

Q: You expect to receive $26,000 at graduation in two years. You plan on investing it at 9.25 percent…

A: Present Value = $26,000  Future Value = $161,000  Rate (r) = 9.25%

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: You will invest Php. 30,000 into an investment that will earn 10% every year for five years. How…

A: Investment (P) = Php. 30000 Interest rate (r) = 10% Period (t) = 5 Years

Q: If you invest $15,000 every year and expect to increase your investment by 6% each year for the next…

A: Annual investment (A) = $15000 Growth rate (g) = 6% r = 7% n = 20 years

Q: You need 85,000 in 10 years. If you can earn .78 percent per month, how much will you have to…

A: Future value is 85,000 Time period is 10years or 10×12 = 120months Interest rate is 0.78%   To Find:…

Q: Your investment advisor says you can buy an annuity now that will pay you $25,000 per year for the…

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

Q: You are scheduled to receive Rs. 13,000 in two years. When you receive it, you will invest it for…

A: In the given question we need to compute the future value after 8 years but we will invest after 2…

Q: Bill wants to invest $45,000 for the next 5 years. If the investment is going to generate 8%…

A: Future Value:   The future value is the amount that will be received at the end of a certain period.…

Q: You expect to receive $30,000 at graduation in two years. You plan on investing it at 9 percent…

A: We have to calculate period required and add two years to that .

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per…

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

Q: Peter Lynchpin wants to sell you an investment contract that pays equal $13,500 amounts at the end…

A: Value we pay today is present value of cashflows

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: How much should you invest each month in order to have $700,000 if your rate of return is 6.9%…

A: Periodic Amount that need to be invested is calculated using the formula future value of annuity.…

Q: f you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Pedro Gonzalez will invest $5,000 at the end of each year for the next 9 years. The interest rate is…

A: The future value of the annuity is calculated when there is a requirement to find the future value…

Q: What would your investment account be worth in 23 years if you currently have $7,000 saved and plan…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: You plan to buy some undeveloped land that should sell for $126,000 in ten years. What is the most…

A: Given: Future value (FV) =$126000No. of years (n)=10 yearsRate of return /interest (r)=18%

Q: You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings…

A: The question is based on the concept of calculating the future value of deposits for retirement…

Q: Mr. Areola is planning to make an additional investment at the end of each year for his retirement…

A: Future value of his deposits needs to be calculated at a rate of 11%. Refer to the excel for the…

Q: You are considering an investment that will pay you $1,200 per month for three years. The first…

A: An annuity is a series of equal payments occurring at regular intervals. The present value is…

Q: You expect to receive $14,000 at graduation in two years. You plan on investing it at 8 percent…

A: Computation:

Q: I am investing $50,000 right now and will add $8,000 each year for the next 10 years. The expected…

A: Investment = 50,000 Annual Payment = 8000 Time Period = 10 years Rate of return = 6.5% Future Value…

Q: If you invest $12,000 today , how much will you have: a) In 6 years at 7 percent? b) In 15 years…

A: Investment amount = $12,000 Time period = 6 years  Rate of interest = 7% In this, the future value…

Q: You plan to buy some undeveloped land that should sell for $180,000 in three years. What is the most…

A: Present Value: The term present value is defined as the current or present day’s value of the amount…

Q: an investment offers 3850 per year for 15 years, with the first payment occurring one year from now.…

A: Here, Annuity Amount is 3850 Interest Rate is 6%

Q: In 10 years, you plan to retire and buy a lotin the province. The lot you are looking at currently…

A: The time value of money concept asserts that an amount of money is worth more now than it would be…

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: Your investor promises you an investment opportunity that will yield a rate of return of 12⁹ per…

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

Q: You expect to receive $10,000 at graduation in two years.  You plan on investing it at 11 percent…

A: Future amount can be calculated as follows: = Present Value * (1 + rate)^ periods

Q: How much should you invest each month in order to have $300,000 if your rate of return is 7.1%…

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

Q: You are looking at an investment that will make annual payments of $28,000, $32,000, $66,000, and…

A: Cahs flow 1 28000 Cash flow 2  32000 Cash flow 3  66000  Cash flow 4  99000  Discount rate…

Q: You plan to retire in 20 years. Use present value tables to calculate whether it is better for you…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

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: How much should you invest each month in order to have $800,000 if your rate of return is 3.6%…

A: future value=A×1+rmm×n-1rm A=annuity r=rate of interest m=frequency of compounding n-number of years

Q: You are going to receive a payment of $80 at the end of each year for the next 20 years. If you…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: You invest $150 each month in a savings plan for a period of 30 years. If you earn an interest rate…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: You expect to receive $ 10,000 at graduation in two years. You plan on investing it at 12% until you…

A: Given information: Present Value of amount=$10,000 Future Value you expect to receive=$120,000 Rate…

Q: Suppose you are planning for retirement. At thebeginning of this year and each of the next 39…

A: Retirement fund is used for saving some portion of income by people for their retirement. It is also…

Q: If you invest $9500 per period for the following number of periods,  how much would you have in each…

A: Calculation of Future value of annuity: Answer: Future value annuities are $232,965.77 and…

Q: Keith Riggins expects an investment of $82,014 to return $10,000 annually for several years. If…

A: Formula: P= C×Annuity Factor where,  P is present value of an annuity C is future cash flow

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.