Harry plans to deposit $3,000 at the beginning of each year into a savings account earning 2.75% compounded annually. How much will be in the account after 25 years?
Q: Juan deposits $5,000 into a savings account that pays 7.2% per year, continuously compounded. What…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from…
A: Working note for calculations. Note for Converting Quarter into years:- Number of year to deplete =…
Q: How much should Elizabeth have in a savings account that is earning 4.50% compounded quarterly, if…
A: Given: Particulars Amount Amount(PMT) $1,550 Years 10 Interest rate 4.50%
Q: Mr. Santos will deposit P10, 000 at the ABC bank at the end of each quarter for 2 years. If the bank…
A: Future value of an annuity can be computed by compounding each amount by using an appropriate…
Q: Priscilla deposits $200 at the end of each month for seven years into savings account earning 5%…
A: Future Value is the value of current investments at a certain future date at the assumed…
Q: Muaz will need $130,000 in 4 years to buy a piece of property. He plans to save money by making…
A:
Q: Aidan deposits $1000 at the end of each quarter in an account that pays 5.25% per year, compounded…
A: Solution: An equal amount invested every period is called annuity. So, future value of annuity = PMT…
Q: 1. Jeremy makes six consecutive annual deposits of P2,000 each to a savings account that pays a…
A: Annual Deposit = 2000 Discount Rate = 10% Semi Annual Compounding N = Number of deposits = 6
Q: At the end of each quarter, a life insurance client deposits Ph 6,176 for 5 years. If money is worth…
A: Quarterly deposit (P) = Ph 6,176 Interest rate = 5.3% Quarterly interest rate (r) = 5.3%/4 = 1.325%…
Q: Robert wants to deposit $300 into a fund at the beginning of each month. If he can earn 10%…
A: Given information : Monthly deposit = $300 Interest rate = 10% Tenure = 6 years
Q: Your aunt promises to gift you $1,500 now, $1,700 one year from now, $1,900 two years from now, and…
A: The future value is reflective of the value of cash flows in the future after compounding them using…
Q: If Luis Jimenez makes annual deposits of $1,000 into a savings account for 30 years, how much will…
A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…
Q: 4. Vincent wants to deposit Php 5,000 at the end of each quarter, for 3 years in a bank that gives…
A: Given Principal = 5,000 Rate (r) = 8% pa or 2 % (8% /4) quarterly Period (n) = 12 periods (3 Yrs…
Q: Assume you deposit $5,200 at the end of each year into an account paying 10 percent interest. a.…
A: deposit made at the end of each year = $5200 interest rate annum = 10%…
Q: How much should Ryan have in a savings account that is earning 2.50% compounded monthly, if he plans…
A: Present Value of Annuity: It represents the present worth of the future cash flows stream and is…
Q: If Trey opens an account with $7,500 and plans on depositing $1,500 every year-end, how much will he…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: Ron has made deposits of $80.00 into his savings account at the end of every three months for 10…
A: The compound interest is when the interest earned in a period is reinvested thereby earning more…
Q: If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of…
A: Saving Account is a type of financial service offered to general public by banks with limited…
Q: Manuel is preparing for an income fund for his retirement. He wants to receive P 15 500 at the…
A: Let the amount to deposit now = X Monthly payout (M) = P 15500 n = 25 years = 300 months r = 10.5%…
Q: Whitney deposited $200,000 into a savings account that has an annual interest rate of 8% compunded…
A: Interest is an extra amount which is received or paid on deposited or borrowed amount for the…
Q: Roland just put RM1,000 in the fixed deposit and intend to leave it there for 10 years. If the bank…
A: Investment amount = RM 1,000 Annual interest rate = 16% Semi annual interest rate = 16%/2 = 8%…
Q: David deposits RM60,000 today into his account that pays 8 percent per year. He continues deposit…
A: Deposit now = RM 60,000 Annual growth in deposit amount = 20% Period of deposit = 4 Years Number of…
Q: How much money must be deposited at the end of each year in a savings account that pays 9% per year,…
A: Compounded annually means at the end of every year, interest shall be added back to the principal…
Q: Christopher wants to have 50,000 pesos in 4 years by saving equal regular payments. He can make a…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: If ₱17,000 is deposited at the end of each year for 16 years in a bank that give 7% interest per…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…
A: The annuity payments that are made at the beginning of the year are called annuity due and the ones…
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A: Interest earned: If the cash basis of accounting is being used, then the amount of interest earned…
Q: Peter deposits $75 at the end of each quarter for 15 years into an account that pays 3.14%…
A: Given data; payment amount= $75 number of years = 15 annual rate = 3.14% compounding frequency = 4…
Q: Peter is saving $5,000 monthly deposit into an account that pays 7% compounded monthly. What would…
A: Monthly deposit (P) = $ 5000 Interest rate = 7% Monthly interest rate (r) = 7%/12 =…
Q: You deposit $825 today in a savings account that pays 3.5% interest, compounded annually. How much…
A: Future value is the value of current value at a specified interest rate for given period. The…
Q: Steven plans to contribute $300 to his "super unrealistically high" savings account at the end of…
A: Here,
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: Derek will deposit $7,502.00 per year for 23.00 years into an account that earns 8.00%, The first…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: John deposits $1500 into a savings account earning simple interest at 2.19% annually. How much will…
A: Calculation of actual amount in account in future: Answer: John will have $1,582.13 in his account…
Q: If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of…
A: To solve this question we have to use the formula of Future Value of ordinary annuity. The formula…
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A: In the given question we require to calculate the future value of account after 25 years is john…
Q: Brandon is scheduled to receive payments of $1,200 each month for the next 2 years, with the first…
A: A payment (PMT) of $1200 is expected every month for 2 years or for (n) 24 months , which is then…
Q: Barbara makes four consecutive annual deposits of $2,000 in a savings account that pays interest at…
A: The question gives the following information:
Q: You have begun a 401k at work, contributing $1,000 at the end of each year. How much is your account…
A: The worth of an account in the future can be calculated using the FV function in Excel.
Q: Jason makes six end-of-year deposits of $2,000 each in a savings account paying 5% compounded…
A: Annual deposits = $2,000 Rate = 5% First calculate the future value of annuity at the and of 6…
Q: Billy plans to deposit $200 into a bank account at the end of every month. The bank account has an…
A: According to the time value rule, the same amount of money can have different purchasing powers in…
Q: In 7 years Harry and Sally would like to have $20,000 for a down payment on a house. How much should…
A: A down payment seems to be a monetary payment made at the start of a purchase deal. It is frequently…
Q: Jason makes six EOY deposits of $2,000 each in a savings account paying 5% compounded annually. If…
A: The compound interest is calculated on the principal amount annually. It considers the present value…
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: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…
A: Investments are the ways through which money is saved in various financial instruments and accounts…
Q: Juan has a goal of saving up $56,397 by making biweekly (26 per year) deposits into a savings…
A: GIVEN, FV = $56,397 M=26 PER YEAR N=9 R=0.6%
Q: Rodney would like to save $57,000 over the next 15 years. How much must he deposit at the beginning…
A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…
Q: How much Alex must deposit annually if he wants to have $800,000 in 25 years by making equal annual…
A: Annual payments refers to the periodic payment which can be used for a variety of purposes like for…
Q: You
A: An annuity refers to a series of payments made at regular interval of time.
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- 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 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.You deposit $4000 into a retirement account each year. The account pays 8℅ interest. How much will you have in 25 years when you retire?Answer the following problems. Show your solutions. Annuity 1. How much money will you accumulate by the end of year 10 if you deposit P 3,000 each for the next ten years in a savings account that earns 5% per year? 2. What deposit made at the beginning of each month will accumulate to P120,000 at 8% compounded semi-annually at the end of 10 years? 3. James deposited P150 at the beginning of each month for two years into his savings account. For the next four years he did not make any more deposits, leaving the money in the account. The bank charges 4% interest compounded monthly. What will the balance be after 12 years?
- After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. A) Assume that the payments start on the day of your retirement. B) Assume that the payments start one year after the retirement.You are investing in a retirement account and plan to deposit $5,000 per year into the account for the next 20 years, starting from today. The account offers an annual interest rate of 6%. How much money will you have in your retirement account at the end of the 20-year period?After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. 1 Assume that the payments start on the day of your retirement. 2.Assume that the payments start one year after the retirement.
- Derek will deposit $1,169.00 per year into an account starting today and ending in year 5.00. The account that earns 7.00%. How much will be in the account 5.0 years from today?Jean-Rene wants to make a lump-sum deposit today such that at the end of every three months for the next five years he can receive a payment starting at $2,500 and increasing by 1% each time thereafter. At the end of the term, an additional lump-sum payment of $10,000 is required. If the annuity can earn 8.75% compounded semi-annually, what lump sum should he deposit today? Using financial Calculator.If Luis Jimenez makes annual deposits of $1,000 into a savings account for 30 years, how much will be in the fund immediately after his last deposit if the fund pays 6% interest compounded annually?