Your friend deposits RM100,000 intoan account paying 8% per annum. She wants to know how long it will take before the interest makes her a millionaire?
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- Betty wants to invest a monthly sum of money in order to accumulate R100000 in seven years. How much must be the deposit monthly if her bank offers her an interest rate of 6% per annum compounded monthly? What if she was given an interest rate of 8%?Mrs Sam has deposited $ 18,000 in a bank at the rate of 7% per annum. Find out how much she will receive after 12 years? Also comment on what effect will she get on her initial deposit if the rate is changing to 10% if she still willing to receive the same sum after 12 years.Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to make annual deposits of P40,000 for 10 years with the first payment being today. Determine the present worth of Ms. Perez’s savings account.
- Mrs. Santos placed an amount of 9,700 Php in an investment that pays an interest rate of 12%, compounded semi-annually. She wants her money to grow to a total amount of 50,000 Php. Then what is the total amount or the future value? And After how many years will his investment grow from 9,700 to 50,000?Jesslyn has just given an insurance company RM1 million, a sum of money she just received from her grandmother. In return, she will receive RM20,000 per quarter for 30 years, assuming that the first payment is at the beginning of the year. Calculate the annual interest rate the insurance company must invest the RM1 million to make the quarterly payments.How long will it take you to become a millionaire if you invest P15, 000 at 25% compounded semi-monthly?
- Suppose Ted deposits $10,000 in a savings plan earning 5% compounded annually and Tess deposits $10,000 in a savings plan earning 10% compounded annually. Both leave their money on deposit for 40 years. Because Tess’s rate is twice as great as Ted’s rate, is it true that Tess will earn twice as much interest? Explain why or why not. Then show calculations to prove your point of view. What is the future value for each investment?. Your sister turned 35 today, and she is planning to save Php7,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires? Her first withdrawal will be made at the end of her first retirement year. A. Php58,601 B. Php61,686 C. Php64,932 D. Php68,179Suppose you are 40 years old and plan to retire in exactly 20 years. 21 years from nowyou will need to withdraw RM5,000 per year from a retirement fund to supplement yoursocial security payments. You expect to live to the age of 85. How much money shouldyou place in the retirement fund each year for the next 20 years to reach yourretirement goal if you can earn 12% interest per year from the fund?
- You just inherited some money, and a broker offers to sell you an annuity that pays Php5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?Suppose you inherited Php275,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a sinking fund paying a 9% interest rate compounded quarterly to accumulate $1,000,000 in 20 years? She needs to make quarterly payment of $