Suppose you want to have $300,000 in the bank when you retire in 45 years and the bank pays 3% annual interest compounded monthly. What should your monthly payments be? USING EXCEL
Q: You invest $ 20.000 in a bank account to buy a house at annual interest rate 15 per year, compounded…
A: Given information: Present value is $20,000 Interest rate is 15% per year compounded monthly Number…
Q: suppose you want to have $700,000 for your retirement in 35 years. your account earns 8% How much…
A: Annuity- refers to a series of periodic payments made at equal time intervals. This financial…
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much will…
A: Each month $100 is to be put into an account earning 8% interest compounded monthly. Periodic…
Q: Suppose you want to have $400,000 for retirement in 35 years. Your account earns 10% interest. How…
A: We can use the concept of time value of money. Here the monthly deposit is in the form of annuity…
Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 6% interest. How…
A: The future value of an annuity is the future worth of a series of cash flows at a certain rate of…
Q: Assume you decide to make weekly deposits of $100 into a savings account over the next 30 years.…
A: given, A = $100 q ( payment frequency) = 52 m ( compounding frequency) = 365 t ( number of periods)…
Q: Suppose you want to have $300,000 for retirement in 25 years. Your account earns 5% interest. How…
A: The monthly deposits to have $300,000 after 25 years, will be a form of an annuity as the same…
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 6% interest. How…
A: Using excel PMT function = PMT(rate,nper,pv,fv)
Q: If you save 400 per month for retirement in an account that earns 8% interest per year, compounded…
A: Given information: Monthly saving $400 Interest rate 8% Number of years is 36
Q: You want to have $50,000 in your savings account 12 years from now, and you’re prepared to make…
A: The annuity refers to the regular payment or receipt that lasts over a period of time. The annuity…
Q: uppose you want to have $800,000 for retirement in 30 years. Your account earns 9% interest. How…
A: The monthly deposit is also called the annuity in which the equal amount has been paid until the…
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much…
A: a) Hence, amount of $149,035.94 have in account in 30 years.
Q: Suppose you want to have $800,000 for retirement in 30 years. Your account earns 9% interest…
A: The amount that need to be deposited can be calculated using the formula of future value of annuity.…
Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 900000 in a…
A: APR: The annual interest rate that is charged to the borrowers is known as the annual percentage…
Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a) How much…
A: Monthly Deposit = 200 Monthly Compounding Time Period (n) = 240 months Interest Rate (r) = 3%/12 =…
Q: Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5.1% interest. How…
A: Future value required (FV) = $400,000 Interest rate = 5.1% Monthly interest rate (r) = 5.1%/12 =…
Q: Suppose you want to have 800000 for retirement in 35 years. Your account earns 5% interest. hoe…
A: Amount that need to be deposit every month can be calculated using the formula of future value of…
Q: Suppose you want to have $300,000 for retirement in 20 years. Your account earns 4% interest. a) How…
A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…
Q: You deposit $500 each month into an account earning 5% interest compounded monthly. a) How much…
A: The future value is the value of amount in future that has to paid or received at current or in…
Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest. a)…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, r = rate of interest per period i.e.…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. How…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: Suppose you want to have $300,000 for retirement in 25 years. Your account earns 9% interest. a)…
A: According to the time value concept, a sum of money today has more purchasing power than the same…
Q: How much would you need to deposit in the account each month?
A: Annuity Payments: These are payments of equal intervals made. Examples of annuity payments include…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. a)…
A: Introduction Future Value: The value derived for the money invested today at a future point of time,…
Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 1000000 in a…
A: Annuity(monthly instalment) is calculated by annuity from future value formula: Annuity from future…
Q: Suppose you want to have $300,000.00 for retirement in 35 years. You plan to make regular monthly…
A: Future value is the value of the cash flows at the end of certain period. Future value of annuity is…
Q: You deposit $1000 each year into an account earning 4% interest compounded annually. How much will…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: You put $1,000 into a savings account today that offers a 55% APR with semi-annual compounding…
A: GIVEN, PV = $1000 N = 2 M = 2 (SEMI ANNUAL) R=55%
Q: Suppose you invest in an annuity that pays 5% annual interest, compounded quarterly. If you…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: You deposit $350 each month into an account earning 3% interest compounded monthly. a) How much will…
A: Given, Deposit amount (C) = $350 each month Timer period (n) = 35 years*12 = 420 interest rate (i) =…
Q: You deposit $500 each month into an account earning 3% interest compounded monthly. Round to the…
A: We need to use future value of annuity formula to calculate money in account after 25 years Future…
Q: Your beginning salary is $70,000. You deposit 12% at the end of each year in a savings account that…
A: Given information: Beginning salary is $70,000 Interest rate is 3% Initial payment of 12% Salary…
Q: You deposit $3000 each year into an account earning 2% interest compounded annually. How much will…
A: Annual deposit (P) = $ 3000 Annual interest rate(R) = 2% Period (N) = 35 Years
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How…
A: Future Value $ 6,00,000.00 Time Period 25 Interest Rate 10%
Q: You deposit $300 each month into an account earning 8% interest compounded monthly. a) How much will…
A: a) Money in account in 30 years: Solved using Financial Calculator PMT = -300 N = 12 * 30 = 360 I/Y…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 8% interest. a) How…
A: The amount to be invested each month will be compounded and will form a corpus und at the end of the…
Q: Suppose you want to have $800,000.00 for retirement in 30 years. You plan to make regular monthly…
A: Monthly deposit It is the minimum value a person will deposit in an account every month. It is the…
Q: How much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank…
A: Given details are : Present value = $1500 Time period = 12 years Interest rate = 5% We need to…
Q: You deposit $300 each month into an account earning 3% interest compounded monthly. a) How much will…
A: Monthly deposit (P) = $300 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 15…
Q: Suppose you deposit $20,000 in an account today that pays 4% interest, compounded annually. How long…
A: Here, 20,000 is deposited today and future value is $80,000. Want to calculate how many years it…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: You want to be able to withdraw $40,000.00 from your account each year for 15 years after you…
A: Time Value of Money (TVM): It is based on a principle that the money in hand now has more value than…
Q: You want to begin saving for your retirement. You plan to contribute $12,000 to the account at the…
A: Since you have asked multiple questions, we will solve the first question for you. Please resubmit…
Q: Suppose you invest $120 a month for 5 years into an account earning 8% compounded monthly. After 5…
A: The future value is an estimation of value received in future on the basis of periodic cash deposits…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How…
A: The question given is related to the annuity payouts, which refers to a series of payments paid over…
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much…
A: Annuity amount = $100 Monthly rate of interest = 0.6667% (8.00% / 12) Number of months = 300 months…
Q: If you have $50,000 in an interest-bearing savings account that pays2 percent annual interest, how…
A: Present value = 50000 Interest rate = 2% Days = 30 Assume 365 days in Year
Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 10% interest. How…
A: Future value (FV) = $ 700,000 Period = 20 Years Number of monthly payments (n) = 20*12 = 240…
Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Computation as follows: Hence, amount to be deposited in each month is $1515.02.
Q: You want $800,000 for retirement in 35 years your account earns 9% How much would you need to…
A: The question gives the following information:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?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 $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 accumulate $1 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 8% interest, compounded annually. You expect to receive annual raises of 3%, which will offset inflation, and you will let the amount you deposit each year also grow by 3% (i.e., your second deposit will be 3% greater than your first, the third will be 3% greater than the second, etc.). How much must your first deposit be if you are to meet your goal?
- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264You 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 annuitySuppose you want to have $300,000 for retirement in 30 years. Your account earns 5% interest. a ) How much would you need to deposit in the account each month? $ b) How much interest will you earn?
- Choose the appropriate formula type for answering the following question: Suppose you want to have $410,500 for retirement in 15 years. Your account earns 6.5% interest. How much would you need to deposit in the account each month? Annuity Compound Interest Loan/Payout AnnuitySuppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How much would you need to deposit in the account each month? b) How much interest will you earn?Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest.a) How much would you need to deposit in the account each month?$b) How much interest will you earn?$