You want to quit your job and go back to school for a law degree 4 years from now,and you plan to save $6,400 per year, beginning immediately. You will make 4deposits in an account that pays 4.7% interest. Under these assumptions, how muchwill you have 4 years from today? (Hint: BGN mode)a. $22,980.31b. $22,685.69c. $28,752.73Od. $29,461.93Oe. $31,524.26

Amount saved per year is $6,400 The time period is 4 years The interest rate is 4.7% The mode of…

Answered: You want to quit your job and go back…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 23PROB

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You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
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 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 want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $7,000 per year, beginning immediately. You will make 3 deposits in an account that pays 5.2% interest. Under these assumptions, how much will you have 3 years from today? $20,993 $24,424 $22,098 $25,645 $23,261
You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $5,500 per year, beginning immediately. You will make 4 deposits in an account that pays 6.6% interest. Under these assumptions, how much will you have 4 years from today? a. $18,775.41 b. $23,452.00 c. $25,877.59 d. $31,377.59 e. $24,275.41
You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save P50,000 per year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest. Under these assumptions, how much will you have 4 years from today?
You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $7,000 per year, beginning immediately. You will make 3 deposits in an account that pays 5% interest. Under these assumptions, how much will you have 3 years from today? Round-off answer to 2 decimal values. *
To complete your last year in business school and then go through law school, you will need $10,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $10,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 8.5% interest a sum of money that is sufficient to provide the four payments of $10,000 each. His deposit will be made today. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter "0". How large must the deposit be? $ How much will be in the account immediately after you make the first withdrawal? After the last withdrawal? After the first withdrawal: $ After the last withdrawal: $
To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $20,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 8.5% interest a sum of money that is sufficient to provide the four payments of $20,000 each. His deposit will be made today. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter "0"
To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $20,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 6.62% interest a sum of money that is sufficient to provide the 4 payments of $20,000 each. His deposit will be made today. How large must the deposit be? Round your answer to the nearest cent.$ How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent.$ How much will be in the account immediately after you make the last withdrawal? Round your answer to the nearest cent. Enter "0" if required$

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