Suppose you want to have $800,000.00 for retirement in 30 years. You plan to make regular monthly deposits into an account earning 5% interest compounded monthly.
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: You would like to save $250,000for retirement. If you are planning to retire 30 years from now, how…
A: The monthly deposit is the amount that is paid every month until the maturity of the period.
Q: You deposit $1000 each year into an account earning 6% interest compounded annually. How much will…
A: Future value of any deposits made is equivalent to the compounded value of deposits made for all the…
Q: You deposit $4000 in an account earning 8% interest compounded monthly. How much will you have in…
A: Given information ; P = 4000 r = 8% or 0.08 Compounded monthly so n = 12 t = 15 years
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 $600,000 for retirement in 25 years. Your account earns 6% interest. How…
A: Using excel PMT function = PMT(rate,nper,pv,fv)
Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a. How much will…
A: Time value tells that money received today by an individual has more value than that of receiving…
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: Suppose you want to have $300,000 in the bank when you retire in 45 years and the bank pays 3%…
A: given, rate = 3% no of years= 45 FV= 300,000
Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…
A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )
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 you want to have $400,000 for retirement in 30 years. Your account earns 5% interest. How…
A: Computation as follows: Hence, each month deposit will be $480.62.
Q: Suppose are going to make monthly deposits into an account with an annual interest rate of [8] 2.5%…
A: For calculating the monthly deposit as ordinary annuity; the $1,000,000 amount shall be taken as the…
Q: Suppose we are going to make monthly deposits in to an account with an annual interest rate of 4.1%…
A:
Q: Suppose you want to have $700,000 for retirement in 25years. Your account earns 9% interest. a) How…
A: In this we need to calculate the future value factor monthly and than calculate the monthly payment…
Q: You are expecting to retire in 28-years and you want to retire with $10,000,000. How much you must…
A: Given information: Future value is $10,000,000 Present value is $122,000 Number of years is 28…
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 that you place $1,000 in a bank account each year for the next 20 years. How much would be…
A: Future value of annuity due can be calculated by using this equation Future value of annuity due…
Q: Suppose you want to have $500,000 for retirement in 20 years. Your account earns 8% interest. How…
A: Future value of each month payment (FV) = $500,000 Number of years to retirement = 20 Number of…
Q: You need to have 80,000 at the end of 7 years. To accumulate this sum, you have decided to save a…
A: Time Period = 7 years Future Value Required = 80,000 End of period deposits Interest Rate = 11%…
Q: Suppose you have decided to put $200 at the end of every month in a savings account that credits…
A: Future value of annuities includes the amount being deposited and amount of compounding interest…
Q: You plan to make annual deposits of $5,000 per year at the beginning of each year into your…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Assume you deposit $5700 at the end of each year into an account paying 11.25 percent interest.…
A: Given: Deposit = $5,700 Interest rate = 11.25% Future value= ?
Q: You would like to have $550,000 when you retire in 40 years. How much should you invest each quarter…
A: Required Amount at retirement is $550,000 Time period is 40 years Interest rate is 6.4% Compounded…
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: If you invest $2,538.00 in an account earning an annual interest rate of 3.153% compounded…
A: Interest is the fee paid to investor for investing funds over a period of time. It is the…
Q: Suppose you put $250 at the beginning of every month in a savings account that credits interest at…
A: Monthly deposit is $250. Annual rate of interest is 6%. Time period is 25 years. Compounding…
Q: You will deposit $354 each year into an investment account that earns 5% interest (as an effective…
A: The question is based on the concept future value of annuity payment for 10 years at end of period,…
Q: Suppose you invest $120 a month for 5 years into an account earning 9% compounded monthly. After 5…
A: Computation:
Q: You think you will be able to deposit $4,000 at the end of each of the next three years in a bank…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: You deposit $400 each month into an account earning 3% interest compounded monthly. Round to the…
A: Monthly deposit (m) = $400 Monthly interest rate (r) = 0.0025 (i.e. 0.03 / 12) Monthly period (p) =…
Q: Suppose you make 1000 pbr monthly deposits to a retirement plan that pays interest at a rate of 30%…
A: Using Excel FV function
Q: Suppose you have decided to put $200 at the beginning of every month in a savings account that…
A: Compound Interest Formula: Future Value of Annuity (A)=P×1+rnn×t-1rn Where, A=final amountP=initial…
Q: Suppose you want to have $300,000 for retirement in 35 years. Your account earns 10% interest. a)…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Suppose that each week, you deposit $43 into a savings account whose annual rate is 1.8% with weekly…
A: We need to use future value of annuity formula to calculate balance of account after 14 years. FV…
Q: Suppose you have decided to put $500 at the beginning of every month in a savings account that…
A: Monthly deposit (m) = $500 Monthly interest rate (r) = 0.00416666666666667 (i.e. 0.05 / 12) Number…
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: If you save $500 per quarter for retirement in an account that earns 8% interest per year,…
A: Retirement planning wherein a fixed amount is saved for a definite period to reap the benefits of…
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: If you initially invest $3500 in an account that earns 4.7% interest compounded daily, how much will…
A: Initial investment (PV) = $3500 Interest rate (r) = 4.7% Number of compounding per year (m) = 365…
Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: You deposit $3000 each year into an account earning 8% interest compounded annually. How much will…
A: Future value of annuity is used to calculate the value of streams of cash flows in future at a given…
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: Suppose you invest $140 a month for 6 years into an account earning 7% compounded monthly. After 6…
A: Compounding can able to increases earnings generated from an asset by reinvesting it to achieve…
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: 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.
Suppose you want to have $800,000.00 for retirement in 30 years. You plan to make regular monthly deposits into an account earning 5% interest compounded monthly.
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- 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 annuityUse 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?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.
- 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?Suppose you want to have $500,000.00 for retirement in 35 years. You plan to make regular monthly deposits into an account earning 7% interest compounded monthly. How much would you need to deposit in the account each month? How much money will you have put into the account? Hint How much interest will you have earned? HintSuppose you want to have $300,000.00 for retirement in 35 years. You plan to make regular monthly deposits into an account earning 8% interest compounded monthly.How much would you need to deposit in the account each month?How much money will you have put into the account? How much interest will you have earned? Hint
- Suppose you want to have $800,000 for retirement in 30 years. Your account earns 6% interest. How much would you need to deposit in the account each month?You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how much should you deposit each month into an account that pays 7.2% interest compounded monthly? What is the total interest earned?Suppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.How much would you need to deposit in the account each month?
- Suppose you would like to retire in 15 years. To save for retirement, you deposit an amount A into the bank at the beginning of the next 180 months. After that period, you would like to withdraw $1,000 at the beginning of the following 300 months. Assume a nominal yearly rate of 7.5% compounded monthly. What amount does A have to be?.Suppose you want to have $500,000 for retirement in 30 years. Your account earns 9% 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 $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?