A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2,000,000 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 8% interest, compounded quarterly, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st quarter and increase the deposit by 4% per quarter thereafter. What should be the size of his first quarter deposit?

Q: An engineer who is about to retire has accumulated $50 000 in a savings account that pays 6% per…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in…

A: Future value of annuity =  P * [ (1+r)^n  - 1 ] /r  Where, r =rate of return per period i.e. 6%/12 =…

Q: Luis has $160,000 in his retirement account at his present company. Because he is assuming a…

A: Given: Amount in retirement account = $160,000 Annual payment = $2,000 Years =22 Interest rate = 8%

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Q: A young man has decided to go into business at the age 40. He wishes to accumulate P 200,000.00 at…

A: Future Value = 200,000 Current Value invested = x Deposit will increase each year by 10% Rate = 9.6%…

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A: Let’s assume the engineer deposits X for one year for 14 years:

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A: Periodic Deposit = $1,000 Time Period = 45 Years

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A: Using excel RATE function

Q: .If the rate of interest per year is 5%,what is the amount of installment that the company should…

A: Annuity Payments: It is a series of payments compounded or discounted at a particular rate of…

Q: A student plans to deposit P1,500 in a bank now and another P3,000 for the next two years. If he…

A: Amount left can be calculated using the formula of the future value.

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A: This is the case of growing annuity in which periodic amounts are deposited at the end of each year.…

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A: The question is based on the concept of Annuity.

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A: Given, interest rate is 8% p.a. compounded quarterly. Equivalent semi annual rate= (1+8%/4)^2-1=…

Q: An engineering graduate starts a new job at $68,000 per year. Her investments are deposited at the…

A: future value of annuity formula: fva=pmt×1+rn-1r

Q: Currently, Fouad Al Marri has $42,180.53 in his brokerage account at Morgan Stanley. He plans to…

A: Given information: Future value is $250,000 Present value is $42,180.53 Interest rate is 12% Annual…

Q: Zachary has opened a retirement account that will pay 4% interest each year. He plans to deposit 8%…

A: Interest Rate = 4%   Year N (Time to last deposit) Salary Sample Working Deposit Sample Working…

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A: The monthly deposit is $250. Interest per months is (9% ÷ 12) = 0.75%. The formula to calculate…

Q: A young executive deposits $400 at the end of each month for 4 years into an account that earns 6%…

A: Formulas:

Q: Max wants to save $500,000 to give to the local clown college. Max decides he can afford to deposit…

A: Given:Max want to save $500000He can deposit $10000 each month Which pay 4% monthly interestTo…

Q: 4. Juan Masipag, a self-employed individual, is opening a retirement account at a bank. His goal is…

A: Amount to accumulate = Php 1000000 n = 20 years i = 8% g = 6% First deposit = A1 Amount to…

Q: ) Suppose a recent college graduate's first job allows her to deposit $200 at the end of each month…

A: Future Value:-It is the value which the company's estimate for a project's future income so that it…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: Ordinary Annuity According to given information woman deposits the amount at the end of each month…

Q: Sam Salverri is planning to retire in 15 years. Money can be deposited by 8% compounded quarterly.…

A: Convert 8% compounded quarterly to its equivalent interest rate for monthly interval. Here, 'R'…

Q: Danny wants to save some money using the following schedule. Starting today, he will make $100…

A: Future value of annuity ( FVA) is stream of recurring cashflow compounded at specified rate to…

Q: A civil engineer who is about to retire has accumulated 750 000 in a savings account that pays 6%…

A: The question is based on the concept of Financial Management. Annuity refers to the series of equal…

Q: A young man has decided to go into business at age 40. He wishes to accumulate P200,000.00 at that…

A: Given: Future Value = P200,000 Current Value invested = x Deposit will increase each year by 10%…

Q: An employee plans to retire in 30 years and wants to create a personal retirement fund where he can…

A: First we need to calculate present value of annuity of withdrawal by using this formula Present…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: We have a question that involves the application of time value of money concept, sequentially. We…

Q: Bria has $450,000 saved for retirement in an account earning 2.4% interest, compounded weekly. How…

A: Future Value:-It is the value of an investment at a future date based on the growth rate. It helps…

Q: A small business owner contributes $2,000 at the end of each quarter to a retirement account that…

A: Order annuity refers to the insurance contracts that promises to pay the regular income of a…

Q: How much will be in the account when the individual retires at age 65 if the savings program starts…

A: Future Value of Annuity: It represents the future worth of the present stream of annuity cash…

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A: Annual income of Php200,000 for 20 years First withdrawal is beginning 30 years from now, Interest…

Q: Janie deposits $10,000 in the bank today. Starting 3 years from now, she makes equal withdrawals of…

A: The amount at the end of 10 years will depend upon the future values of the deposits and the…

Q: An engineer who is planning his retirement has decided that he will have to withdraw ₱10 000 from…

A: Retirement funds are the funds that are accumulated by an individual in his/her pre-retirement life…

Q: small business owner contributes $2,000 at the end of each quarter to a retirement account that…

A: Information Provided: Amount to be contributed = $2000 Interest = 10% compounded quarterly

Q: How much money has accrued in the account at the end of the 14 years? (Round your answer to the…

A: Case i. Money accrued in the account at the end of the 14 years: Future value of annuity formula =…

Q: A woman, with her employer's matching program, contributes $500 at the end of each month to her…

A: The future value function can be used to derive the future value of a present sum or stream of cash…

Q: Marites, a self-employed individual, is opening a retirement account at a bank. Her goal is to…

A: First deposit (F) = A1 Accumulated amount needed = Php 1000000 Number of deposits (n) = 20 Growth…

Q: A woman, with her employer's matching program, contributes $300 at the end of each month to her…

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

Q: A small business owner contributes $3,000 at the end of each quarter to a retirement account that…

A: Given information: Quarterly payment $3,000 Interest rate 10% compounded quarterly Future value is…

Q: A student plans to deposit $1,500 in the bank now and another $3,000 for the next 2 years. If he or…

A: Deposit now = $ 1500 Deposit after 2 years = $ 3000 Withdraw after 5 years = $ 5000 Future value…

Q: Sam Salverri is planning to retire in 15 years. Money can be deposited by 8% compounded quarterly.…

A: in this we have to calculate monthly interest rate and from that we can get required value.

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: Money in the account after 28 years is future value of monthly deposits

Q: Assume that Steven is 28 years old, works as a lawyer and plans to retire at the age of 55. He is…

A: The concept of the time value of money is one of the most used concepts in finance. It is used to…