You have just inherited $100,000 as a lump-sum amount from your distant aunt. After depositing the money in a practically risk-free certificate of deposit (CD) earning 5% per year, you plan to withdraw $10,000 per year for your living expenses. How many years will your $100,000 last in view of these withdrawals? (Hint: It is longer than 10 years!)

Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…

A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate

Q: What is the monthly payments you must make on this loan?

A: Pricipal=? n=60 months Rate=12%

Q: You plan to go to Asia to visit friends in three years' time. The trip is expected to cost a total…

A: Total amount required for the trip is $ 10,000 Maturity amount of certificate of deposit = $ 5,000 *…

Q: Your rich uncle bequests to you a continuous, constant income stream of $9000 per year for the next…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You would like to have $8,000.00 in 15 years for a special vacation following graduation by making…

A: Using the PMT function in excel

Q: Omar wants to buy a house in another 7 years. The type of house he wants to buy is currently selling…

A: Future value: Future value is $97,435.86

Q: Your uncle gives you $92,000 as a gift. Rather than give you a lump-sum, your uncle structures the…

A: Giftable amount (PV) is $92000 Annunity per year (PMT) is $16,250 Interest rate is 12% To Find:…

Q: Jia has just won a $20 million lottery, which will pay her $1 million at the end of each year for 20…

A: The value which shows the equivalent worth of payment that is expected to be realized in future by…

Q: You want to be able to withdraw $50,000 from your account each year for 20 years after you retire.…

A: Here we will first have to find the present value of annual withdrawals of $50,000 for 20 years.

Q: Luis has $170,000 in his retirement account at his present company. Because he is assuming a…

A: This account works as a combination of two separate account: fixed principal of $170,000 compounded…

Q: Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual.…

A: Total number of periods or years is 5 years Interest rate is 5% Annual withdrawal is $2000 To Find:…

Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…

A: Note:- “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: esslyn has just given an insurance company RM1 million, a sum of money she just received from her…

A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…

Q: Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a…

A: Here, Required Amount is $1,000,000 Time Period (n) is 20 years Interest Rate (r) is 9% Compounding…

Q: You believe that you can set aside $1,200 each year for the next four years, starting immediately,…

A: Given : Interest rate = 4% compounded annually Year Payment 1 1200 2 1200 3 1200 4…

Q: Samy would like to buy a house with cash ten (10) years from now. The house is currently selling at…

A: Annuity means a series of finite number of payments which are the same in size and made in equal…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…

A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%

Q: Jia has just won a $20 million lottery, which will pay her $1 million at the end of each year for 20…

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

Q: You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a…

A: Given, Future value is $8,000 Present value is $4,000 Rate is 6%

Q: An individual wants to have 1,000,000 AED in 10 years. Suppose she will pay no taxes at the end of…

A: To calculate the present value , the future value need to be discounted using the discount rate.…

Q: uppose you are 40 years old and plan to retire in exactly 20 years. 21 years from now you will need…

A: The concept of time value of money will have to be used here. As per the concept of time value of…

Q: You just inherited $10,000. While you plan to squander some of it away, how much should you deposit…

A: The investments or savings in the account are made with an expectation of increment in its value in…

Q: You’ve landed your first job after graduation. Although retirement may seem like a long way off, you…

A: contribution =$7000 per year  interest rate =6% Period =35 Future value FACTOR =(1+r)n-1/r…

Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound…

A: It will take 6.69 years for Jacob to reach 6500 dollars

Q: You plan to retire in exactly 20 years' time and expect to live for 30 years after you retire. In…

A: Annuity is the concept of accepting or depositing equal amount at equal time interval over a period…

Q: Mark deposits $40,000 now into an account which will earn interest at a rate of 8% per year, how…

A: Present value of annuity concept is used to calculate the annual withdrawal amount.

Q: You want to be able to withdraw $50,000 from your account each year for 25 years after you retire.…

A: Here, Annual amount to withdraw = $50,000 Time in years after retirement = 25 years Time to…

Q: When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a…

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

Q: Becky would like to be a millionaire in 40 years. How much would she need to invest quarterly in a…

A: Given:

Q: You have just graduated and need money to buy a new car. Your rich Uncle Chan will lend you the…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $3 Million by…

A: Annual deposit is calculated using following equation Annual deposit = FV×i[(1+i)n-1]×(1+i) Where,…

Q: You are planning to invest $3,000 in an account earning 7% per year for retirement. a. If you put…

A: Here we will use the concept of time value of money.

Q: A woman desires to have $400,000 in a savings account when she retires in 20 years. Because of the…

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

Q: Suppose you are 40 years old and plan to retire in exactly 20 years. 21 years from now you will need…

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

Q: A.) A man has deposited $50 000 in a retirement income plan with a local bank. This bank pays 9% per…

A: The requirement is to find the annual withdrawal. This amount will be the same for all 12 years. The…

Q: Having just inherited a large sum of money, you are trying to determine how much you should save for…

A: Facts in the given question: Inheritance of a large sum of money. Interprete how much you should…

Q: You are planning to save for your retirement during the next 30 years. You want to be able to…

A: EAR = (1+apr/n)^n - 1 EAR = (1+8%/12)^12 - 1 = 8.299951% Now let us find out the present value of…

Q: You would like to have ​$53,000 in 13 years. To accumulate this​ amount, you plan to deposit an…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: You have just retired with savings of $5 million. If you expect to live for 49 years and to earn 12%…

A: Present value = Annuity * PVAF ( Rate, Years )

Q: It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your…

A: The future value is the value of the equal deposits at the end of the deposit period. The…

Q: You are planning to invest $2,000 in an account earning 10​% per year for retirement. If you put the…

A: Return refers to the money made or lost on a investment after a period of time.

Q: Your aunt is planning to invest in a bank CD that will pay 7.5% interest semi annually. If she has…

A: SEMI ANNUAL INTEREST RATE  (7.50%/2) 3.75% PERIOD (4*2) 8 PRESENT VALUE $5,000 PMT 0

Q: Mr. White is updating his estate plan for himself and his family. He would like to provide an income…

A:

Q: Suppose that, to purchase a car, you are obtaining a personal loan from your uncle in the amount of…

A: Given information: Amount of personal loan is $75,000 Number of years to be repaid is 3 years…

Q: A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8…

A: Time value of money refers that, a sum of money today has more value than the same amount received…

Q: Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The…

A: Information Provided: Return for the first 11 years = 1.40%Return for the next 16 years = 6.90%…

Q: Edna invests $30,000 and buys an annuity that pays $2000 every 6 months (1st payment 6 months from…

A: Open MS Excel --> Go to formulas --> Use FV function(Future value) Calculate the future value…