You plan to invest your saving of $15 000 in the next 12 years with two phases: in the first 7 years you invest it in an account that pay an interest of 6.5 % compounding quarterly. In the last 5 years you invest the total amount accumulated in the first 7 year in another asset that pays you interest of 8% compounding monthly.   Required: How much money would you accumulate at the end of 12 years? If you wish to have $75 000 at the end of 12 years, how much should you invest now?

Q: ABC Corporation has invested $2.5 million every 3 months in an investment which earns interest at…

A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…

Q: You have just deposited $5,000 into an account that promises to pay you an annual interest rate of…

A: Amount of deposit=$5000Interest rate=5.3%Number of years=10

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: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…

A: To find the present value of the investment, we will first define where the payments are made. We…

Q: (Calculating Annuities) You are planning to save for retirement over the next 30 years. To do this,…

A: Stock account investment per month (S) = $700 Bond account investment per month (B) = $300 Stock…

Q: Suppose an individual makes an initial investment of $2,200 in an account that earns 7.8%,…

A: An individual investor made deposits initially and continues to invest on monthly basis for 12…

Q: If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first…

A: Initial cost (I) = $15000 CF1 = $1100 forever starting after 2 years CF2 = $500 forever every 6…

Q: You are scheduled to receive Rs. 360,000 in two years. When you receive it, you will invest it for…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Should you buy an asset that will generate income of $1,000 per year for 10 years? The price of the…

A: YEAR CASH FLOW      0 -7500 1 1000 2 1000 3 1000 4 1000 5 1000 6 1000 7 1000 8…

Q: Assume that 1 year from now you plan to deposit €1,000 in a savings account that pays a rate of 8…

A: If the bank compounds interest annually, amount in the account 4 years from now will be =€1,000×FVF…

Q: you are paying into an investment account that pays 8% compounded annually. If you are making…

A: In the given question we require to calculate the future value from the following details: Interest…

Q: If you put $2,500 in a savings account at the end of each year for 10 years and then allow the…

A: Yearly payment(PMT) is $2,500 Time period(initial) = 10 years Rate 12% per annum Futute value of…

Q: You plan to save $4,800 at the end of each year for the next 8 years. How much money will you…

A: Future value is to be calculated , rate of interest is 4% and time is  year by paying regular…

Q: d) You expect to make 12 semi-annual payments of $ 5,000 each at the rate of return of 5%…

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

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: Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional…

A: a) The computation of effective annual rate for 10 year: Hence, the effective annual rate is 8.16%.

Q: You plan to deposit $900 PER YEAR into an account earning 5.25% interest compounded annually. How…

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

Q: Your brother has asked you to help him with choosing an investment. He has OMR 5000 to invest today…

A: Bank Certificate of Deposit (CD) is an investment instrument offered by banks. Here the interest…

Q: You to start to save for a major purchase. You can invest ₱320 every three months for 3 years and 9…

A: Interest Earned refers to amount cash inflow that a lender or investor receives in excess of…

Q: Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional…

A: a) Computation:

Q: a) How much is in the account after the last deposit is made? (b) How much was deposited (c) What…

A: In order to find the following questions, one needs to use excel and apple functions like PMT, FV…

Q: You will deposit $2,000 per year for the next 10 years. Then, you will start drawing money out of…

A: Future value is the value of the present cash flows in future. Investor will deposit same equal…

Q: If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in…

A: Given, The amount invested today is $2000 The rate of interest is 7%

Q: Find the time required for an investment of 5000 dollars to grow to 8700 dollars at an interest rate…

A: The time can be computed using excel as follows:

Q: will your hotel have at the end of the 10th year ($)?

A: Future value refers to the amount of a current cash flow at some future date based on the given…

Q: You need to have 80,000 at the end of 7 years. To accumulate this sum, you have decided to save a…

A: Time Period = 7 years Future Value Required = 80,000 End of period deposits Interest Rate = 11%…

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: Using excel FV function

Q: A person wants to make two individual investments, one today and one in six months at a rate of 18%…

A: monthly rate = 18%/12 = 1.5% X * 1.01512 + 5,000,000*1.0156 = 10,000,000 X = 3,791,163.26

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: The amount at the end of a specific number of years will be the future value of the initial deposit.

Q: You plan to make a lump-sum deposit of $5000 now into an investment account that pays 6% per year,…

A: Lump Sum Deposit = 5000 Return % = 6% Annual End of year withdrawals = 1000 Time Period of…

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Future value(FV) is the value of initial investments at a future date after compounding it with a…

Q: You deposit $4000 each year into an account earning 8% interest compounded annually. How much will…

A: given  PMT = 4000 n= 20 years i=8% FV = ?

Q: A business sets up a sinking fund so they will have a $46,000.00 to pay for a replacement piece of…

A: A Sinking fund refers to a fund that is kept aside or borrowed for the purpose of paying off a debt…

Q: You will deposit $354 each year into an investment account that earns 5% interest (as an effective…

A: The question is based on the concept future value of annuity payment for 10 years at end of period,…

Q: Suppose you invest $120 a month for 5 years into an account earning 9% compounded monthly. After 5…

A: Computation:

Q: Determine the size of your investment account 23 years from now (when you plan to retire) if you…

A: Future value: It is the value of the current asset, depending on the assumed rate of the growth, at…

Q: You have just deposited $12,000 into an account that promises to pay you an annual interest rate of…

A: Calculate the future value at the end of the year 8 as follows: Future value = Present…

Q: You plan to accumulate R450,000 over a period of 12 years by making equal annual deposits in an…

A: Annuity due is a type of annuity under which payment is deposit at starting of the each period and…

Q: You want to be able to withdraw $4500 from an account at the end of each 6-month period (that is,…

A: Using Excel PV function

Q: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…

A: Investments are the ways through which money is saved in various financial instruments and accounts…

Q: A company has had record profits and decided to use some of the profits to pay for manufacturing…

A: Annuity is the series of payment made by an investor at fixed interval for specified period of time.…

Q: Your brother has asked you to help him with choosing an investment. He has $7,700 to invest today…

A: Future value represents the value of the investment in the future date of the company.

Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…

A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…

Q: Five years ago, you entered into a 10-year investment with a simple interest of 4% per annum and a…

A: One time principal = P Simple interest for first 5 years (r) = 4% Compounded interest for next 3…

Q: With an annual effective interest rate of 6%, 500 USD is deposited into an account at the end of…

A: we will be using time value of money concepts and formula for this calcualtion Time value of money…

Q: A. A person wants to generate fourintallments of $1,000 in the following four years. How much money…

A: Discounting the future cashflows provides the present value.

Q: If you put $2,500 in a savings account at the end of each year for 10 years and then allow the…

A: End of year deposits Time Period for deposits = 10 years Annual Amount = 2500 Interest Rate = 12%…