6. A company is buying a piece of manufacturing equipment now for $45,000. They expect to have to replace this equipment in 10 years. How much should they save monthly in an account that earns 6% interest, if average inflation has been 3.8%?
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- How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?You plan to retire in 30 years and want to accumulate enough by then to provide yourself with $30,000 a year for 15 years.a. If the interest rate is 10%, how much must you accumulate by the time you retire? How much must you save each year until retirement in order to finance your retirement consumption?b. Now you remember that the annual inflation rate is 4%. If a loaf of bread costs $1 today, what will it cost by the time you retire?c. You really want to consume $30,000 a year in real dollars during retirement and wish to save an equal real amount each year until then. What is the real amount of savings that you need to accumulate by the time you retire?d. Calculate the required preretirement real annual savings necessary to meet your consumption goals.e. What is the nominal value of the amount you need to save during the first year? (Assume thesavings are put aside at the end of each year.) What is the nominal value of the amount you need to save during the 30th year?1. What is the current equivalent of a series of fixed annual payments of each ($2000) if the first payment will occur five from now, and the last will occur at the beginning of the fifteenth year? Suppose rate Interest (7%)? 4. Someone is trying to save money to buy a small apartment five years from now, assuming that the first payment was ($ 3000) at the end of the first basket and that the interest rate is (10%), what is the amount he has accumulated at the end of Five years for the following cases: a. Creativity will increase by $300 in the four years after the first batch? B. Creativity will decrease by $150 in the four years after the first batch? e 9:22
- What is the value today of a money machine that will pay $1,507.00 per year for 10.00 years? Assume the first payment is made today and that there are 10.0 total payments. The interest rate is 7.00%.8. A financial company will pay you $70,000 now in exchange for annual payments of $11000 that you are expected to receive over the next 9 years. If you estimate the time value of money at 7 percent each year, would you accept this offer? 9. If you borrow $59,500 today to buy a car, with a 3.6 percent per year interest rate to be repaid in 4 years, what would be the monthly payment?Suppose you put $1000 in an account today and you need to have $6727.5 in the future. If the bank pays 10%, how many years (n) will it take you to have $6727.5?
- If the inflation rate is 6% per year, how many (future) dollars will be required 10 years from now to buy the same things that $15,000 buys now? Solve manually pleaseYou started an investment account 10 years ago with $2100, and it now has grown to $8900. a. What annual rate of return have you earned (you have made no additional contributions to the account)? b. If the investment account earns 11% per year from now on, what will the account's value be ten years from now? a. The annual rate of return is%. (Round to two decimal places.) View an example Get more help - Clear allSuppose that you earn $45,600 per year. What is your monthly salary? $ Assume that you deposit 10% of your monthly salary into an investment account with an APR of 4.8% every month for 30 years. We will assume for simplicity that your salary never changes, so you are depositing the same amount every month for 30 years. What will the balance of your investment account be after 30 years? Round your answer to the nearest cent. The balance of the account is $ How much of the investment account balance is interest? The amount of interest in the account is $
- A person wants to withdraw PLN 5,000 a quarter for 36 years. This person also 4) wishes to index this amount by about 0.075% per quarter to compensate for inflation effects. How much should he have today to achieve this goal if the average nominal interest rate for instruments he wants to use for saving generates a return of 5,5% per year?What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%, compounded monthly? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $25,937.42 $27,070.41 O $10,000Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10