You want to go to Europe 5 years from now, and you can save RM3,100 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 8.5% per year. Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?
Q: You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: You just graduated, and you plan to work for 10 years and then to leave for the Australian “Outback”…
A: Graduation gift (G0) = $5000 1st year saving to 5th year saving (S1 to S5) = $1000 S6 to S10 = $2000…
Q: You plan to use the 150,000 TL fund, which was idle for a year, in a time deposit account. The…
A: The future value is the future worth of the mount that will be paid or received at the end of the…
Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?
A: Lets understand, how to solve it. For solving the question, we need to use below formula. = Amount…
Q: Suppose you need to accumulate GHȼ100,000 in 10 years. You plan to make a deposit in a bank now, at…
A: The future value of the growing annuity is the future worth of a cash flow series growing at a…
Q: You have decided to start saving for an extended overseas trip in five years’ time. If you put $800…
A: The Future value of present money deposits $P per annum during n years at a rate r% is given by F =…
Q: You are currently investing your money in a bank account which has a nominal annual rate of 7…
A: The future worth means the amount that is to be received after a certain specified period of…
Q: How much will you have after 5 years? How much will you have after 5 years if you make the deposits…
A: Each year Deposit RM 2500 Interest Rate 4%
Q: ose an investment will pay $21,000 in 19 years from now. If you can earn 16.35% interest compounded…
A: The today value will be the present value of future value considering the discount rate and period…
Q: If you deposit in a bank $200 today, $250 a year from now, $150 in the second year and $300 in the…
A: Future value is the expected value of current sum in a future date at given interest rate.
Q: You are considering investing in a security that will pay you $4,000 in 29 years. If the appropriate…
A: The current value of a future sum of money at a given rate of return is called present value. The…
Q: You wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…
A: Value of investments after 10 years=$50,000Rate of return(r)=8%Time(n)=10 years
Q: ou wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…
A: Future value is defined as the amount that one gets at the end of the maturity period. An investment…
Q: Suppose an investment will pay $11,000 in 26 years from now. If you can earn 13.30% interest…
A: MONTHLY COMPOUNDING RATE (13.30%/12) 1.108333333% YEARS (26*12) 312 PMT 0 FUTURE VALUE…
Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: sume that you plan to buy a condo 5 years from now and you need to save for a down payment. You plan…
A: solution given Annual deposit 2500 Interest rate 4% Number of years 5 years…
Q: You want to invest your savings of $20,000 in government securities for the next 2 years. You can…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: You have an investment account that started with $2,000 10 years ago and which now has grown to…
A: Future value is an estimated value of the investment by an investor during period of time. This is…
Q: The “Arctic Express” mutual fund company invests its monies in Russia. They claim that money…
A: Information provided: Term = 10yrs Annuity = $200 per month Future value: [P*((1+r)^n-1/r)] P is…
Q: Consider the following situation, which requires comparison of options.Cousin Thaddeus offers to pay…
A: Annuities are insurance contracts that promise to pay you regular income either immediately or in…
Q: Your cousin has asked for your advice on whether or not to buy a bond for $995, which will make one…
A: Here, Buying Price of Bond is $995 One Time Payment after 5 years is $1,200 Time Period is 5 years
Q: If you are planning a trip to other place after 3 years. And, if you intend to deposit savings of…
A: According to the time value principle, a sum of money may have different purchasing powers in…
Q: You want to have $3.5 million in real dollars in an account when you retire in 50 years. The nominal…
A: The formula used to compute real rate of return as follows: Real rate of return=1+Nominal…
Q: Elizabeth wants to double her money in 17 years in an investment fund. What monthly compounding…
A: To calculate monthly compounding interest rate, we will use time value of money formula. Given FV/PV…
Q: You want to go to Europe 5 years from now, and you can save $3,800 per year, beginning one year from…
A: Future value of ordinary annuity is calculated when regular payments are made at the end of each…
Q: answer the question now its econ answer it now!!!
A: Net benefits refer to the estimation of all the benefits summed up and the sum of all the costs…
Q: If you would like to have $20,000 in 5 years, how much should you invest today if your investment…
A: Present value is the value today of future cash flows discounted at the required rate of return for…
Q: Ali wants to choose a better option for making investment, help him to decide which the better…
A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…
Q: You are thinking of ways to make money. One option is to borrow $20,000 from the bank, which charges…
A: Given information : Year Bond investment Stock investment 0 -20000 -20000 1 1000 0 2 1000 0…
Q: You have an opportunity to invest in a FinTech start up. You will have to make two annual payments -…
A: Expected annual return or IRR indicates the anticipated compound annual rate of return earned on an…
Q: You want to go to grad school 3 years from now, and you can save $5,000 per year for consecutive…
A: Yeas = 3 Each Year deposit = 5000 Return rate = 9%
Q: You are considering a safe investment opportunity that requires a $780 investment today, and will…
A: Investment (X) = $780 Payment after 2 years (P2) = $870 Payment after 5 years (P5) = $640 Let r =…
Q: suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should…
A: Following is the answer to the given question
Q: You want to go to Europe 5 years from now, and you can save $3,300 per year, beginning one year from…
A: Hi, since you have posted multiple question, I will answer the first. Please re-post the unanswered…
Q: You intend to accumulate RM5,713 in a bank savings account,4 years from now. How much savings must…
A: Future value = RM 5713 Period = 4 Years Annual interest rate = 10%
Q: You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from…
A: Annual deposit (P) = 3100 Interest rate (r) = 15.87% Number of annual payments (n) = 5
Q: You are currently investing your money in a bank account which has a nominal annual rate of 7…
A: To estimate how long it will take to double an investment at a given interest rate, we can use the…
Q: As an investment plan, a bank offers you an attractive plan so that you could get RM 100,000.00…
A: The concept of the time value of money states that the current worth of money is more than its value…
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: A person would want to have K143.33 in 4 years time by depositing a single cash of K100 in a bank…
A: Compound interest is one of the ways that money invested earns interest. In compound interest, the…
Q: as the Fund manager for bank of Trinidad and Tobago Limited, you are to advise the following two…
A: 2,a) Given: The financial situations of the bank Trinidad and Tobacco are given.
Q: Suppose an investment will pay $7,000 in 44 years from now. If you can earn 6.15% interest…
A: Formulas: Present value = Future value / (1+rate)^years
Q: Ali wants to choose a better option for making investment, help him to decide which the better…
A: Using time value of money concept for selecting better option
Q: Four years ago Jonathan had started his saving for his dream holiday in Hawai by putting a lump sum…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: You will deposit $30,000 per year into an account beginning today that pays 13 percent per year.…
A: Annual Deposit = 30,000 beginning of period deposits Interest Rate = 13% Future Value Required =…
Q: You are considering in a security that has the following cash flow pattern. At the end of year 5,…
A: The time value of money is the idea that the value of money received today will be more worthy than…
Q: You are considering a safe investment opportunity that requires a $710 investment today, and will…
A: Minimum acceptable rate of return It is the lowest rate of return which a project must be…
Q: You wish to have an investment that will bring about $20 000 infive years, and the rate of return is…
A: According to time value of money concept, the amount of dollar that is received today is more worth…
Q: Assume you are told that by investing $100,000 now, you will receive $10,000 per year starting in…
A: Given information: Investment amount is $100,000 Annual cash flow amount is $10,000
You want to go to Europe 5 years from now, and you can save RM3,100 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 8.5% per year. Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You can invest in a mutual fund that generates 9% return per year. If you want to have $700,000 in your account 10 years from now, how much would you have to deposit, at the end of each year, for the next 10 years?Please answer part A-D and give a short explanation of how you arrived at you answer. A) You want to go to Europe 5 years from now, and you can save $3,300 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 9.1 percent per year. Under these conditions how much would you have just after you make the 5th deposit 5 years from now? B) Your uncle has $300,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $53,750 at the end of each year, starting at the end of this year. For how many years can he make the $53,750 withdrawals and have nothing left at the end? Round to the nearest integer. C) What’s the future value of $1,200 after 5 years if the appropriate interest rate is 10.8 percent, compounded monthly? Round to the nearest integer. D) Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 31.2 percent with…
- You are planning to save for retirement over the next 30 years. To do this, you will invest K700 a month in a stock account and K300 a month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with an 8 percent return. How much can you withdraw each month from your account assuming a 25-year withdrawal period?Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 8% on your investments, how much would you have to deposit today to have $15,000 when you graduate?You wish to have an investment that will bring about $50 000 in tenyears, and the rate of return is 8% per annum. Required:a. In term of time value of money, what is the amount of $50,000 represent?b. How much do you need to invest now if the rate is compounded annually(to the nearest dollar)?c. If you have $50,000 now and put the sum into a bank account that pays5% per year. How much will you have in 8 years if the rate is compounded semiannually, quarterly, monthly and daily (to the nearest dollar)?
- Assume that you plan to buy an apartment 5 years from now and you need to save for a down payment. You plan to save RM2,500 per year with the first deposit made immediately (at the beginning of the year), and you will deposit the funds in a bank account that pays 4% interest. How much will you have after 5 years? How much will you have after 5 years if you make the deposits at the end of each year? Even if the bank provided the same interest rate, which option (at beginning of each year or at end of each year) would give a higher total savings after 5 years? Explain.If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? How much must you invest at 12% interest, compounding quarterly, in order to see your investment grow to P5,000 in 27 months? If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive?You wish to have an investment that will bring about $20 000 infive years, and the rate of return is 8% per annum. Required:a. In term of time value of money, what is the amount of $20,000 represent?b. How much do you need to invest now if the rate is compounded annually(to the nearest dollar)?c. If you have $20,000 now and put the sum into a bank account that pays5% per year. How much will you have in 6 years if the rate is compounded semiannually, quarterly, monthly and daily (to the nearest dollar)?
