Please indicate what you entered into your calculator to solve these problems.1.You graduated with $28,000 in school loans. You will make annual payments of$4,000 at the beginning of each year for the next 10 years. What annual rate ofinterest are you being charged on your school loans?2.You bought equipment for $23,000 and agreed to make monthly payments at the endof each quarter for 5 years. Assuming you are being charged 9% interestcompounded QUARTERLY, how much will your QUARTERLY payments be?3.You currently have $750,000 in your building fund. If you start depositing anadditional $20,000 per year into this account at the beginning of each year, howmuch will be in the account after 6 years assuming 5.5% interest compoundedannually?4.You want to start saving for a new car and have decided to put S$90 per month at thebeginning of each month into an account which earns 6% compounded monthly. Youwould like to be able to buy a car for $25,000. (a) How many deposits will you have tomake to reach your $25,000 goal? (b) How many years will that be?5.Mr. Smith wants to be able to withdraw $80,000 per year at the end of each year fromhis retirement account for 30 years after he retires. Assuming a 7% annual compoundinterest rate, what is the minimum amount Mr. Smith must have in this account whenhe retires? Please indicate what you entered into your calculator to solve these problems.1.You opened an account with $20,000. You want to have $28,000 at the end of 9years. At what interest rate must you invest your money in order to reach your goal?2.You plan to create an account with an opening balance of $5,000. This account earns8% interest compounded semiannually, how much money will you have in thisaccount at the end of 7 years?3.You want to buy a new piece of equipment in three years. You estimate the machinewill cost $85,000. You can invest money into an account earning 6% compoundedMONTHLY. How much will you need to put into the account today in order to beable to buy the new piece of equipment?4.You currently have $17,155 in an account but you need $40,000. If your account earns8% interest compounded annually, how many years will it take to reach your goal?5.You plan to deposit $900 PER YEAR into an account earning 5.25% interestcompounded annually. How much money will be in the account after 6 years,assuming the deposits are made at the BEGINNING of each year?

Since you posted multiple questions ,we will solve the second page last question for you. if u want…

You plan to deposit $900 PER YEAR into an account earning 5.25% interest compounded annually. How much money will be in the account after 6 years, assuming the deposits are made at the BEGINNING of each year?

You plan to deposit $900 PER YEAR into an account earning 5.25% interest compounded annually. How much money will be in the account after 6 years, assuming the deposits are made at the BEGINNING of each year?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Please indicate what you entered into your calculator to solve these problems.
1.
You graduated with $28,000 in school loans. You will make annual payments of
$4,000 at the beginning of each year for the next 10 years. What annual rate of
interest are you being charged on your school loans?
2.
You bought equipment for $23,000 and agreed to make monthly payments at the end
of each quarter for 5 years. Assuming you are being charged 9% interest
compounded QUARTERLY, how much will your QUARTERLY payments be?
3.
You currently have $750,000 in your building fund. If you start depositing an
additional $20,000 per year into this account at the beginning of each year, how
much will be in the account after 6 years assuming 5.5% interest compounded
annually?
4.
You want to start saving for a new car and have decided to put S$90 per month at the
beginning of each month into an account which earns 6% compounded monthly. You
would like to be able to buy a car for $25,000. (a) How many deposits will you have to
make to reach your $25,000 goal? (b) How many years will that be?
5.
Mr. Smith wants to be able to withdraw $80,000 per year at the end of each year from
his retirement account for 30 years after he retires. Assuming a 7% annual compound
interest rate, what is the minimum amount Mr. Smith must have in this account when
he retires?

Please indicate what you entered into your calculator to solve these problems.
1.
You opened an account with $20,000. You want to have $28,000 at the end of 9
years. At what interest rate must you invest your money in order to reach your goal?
2.
You plan to create an account with an opening balance of $5,000. This account earns
8% interest compounded semiannually, how much money will you have in this
account at the end of 7 years?
3.
You want to buy a new piece of equipment in three years. You estimate the machine
will cost $85,000. You can invest money into an account earning 6% compounded
MONTHLY. How much will you need to put into the account today in order to be
able to buy the new piece of equipment?
4.
You currently have $17,155 in an account but you need $40,000. If your account earns
8% interest compounded annually, how many years will it take to reach your goal?
5.
You plan to deposit $900 PER YEAR into an account earning 5.25% interest
compounded annually. How much money will be in the account after 6 years,
assuming the deposits are made at the BEGINNING of each year?

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