Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to withdraw $8,000 three years after her last deposit, what will be the amount of money left in the bank after two years of her withdrawal? Use a 10% interest rate. MANUAL CALCULATION AND CASH FLOW DIAGRAM
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Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to withdraw $8,000 three years after her last deposit, what will be the amount of money left in the bank after two years of her withdrawal? Use a 10% interest rate.
MANUAL CALCULATION AND CASH FLOW DIAGRAM
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- Liz plans to deposit $20,000 in the bank now and another $5,000 two years from now. If she plans to withdraw $8,000 three years after her last deposit, what will be the amount of money left in the bank after three years of her withdrawal? Use a 10% interest rate and draw a cash flow diagram.You plan to deposit $300 each year into an IRA earning 4% interest annually. How much will you have in your account in 20 years? Your Answer: AnswerIf you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?
- If you want to withdraw $20,000 at the end of two years and $55,000 at the end of four years,how much should you deposit now into an account that pays 12 % interest compounded MONTHLY? See the accompanying cash flow diagram.You deposit $200 each month into an account earning 5% interest compounded monthly. a) How much will you have in the account in 15 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $To help you reach a $16,000 goal 8 years from now, your father offers to give you $4,000 now. You plan to get a part-time job and make five additional deposits, one at the end of each year. (The first deposit is made at the end of the first year.) If all your money is deposited in a bank that pays 6% interest, how large must your annual deposit be?
- How much would you have to deposit now. so that you can withdraw of $10000 starting at the end of year 5 , and subsequent Withdrawals will decrease a rate of of 10% semiannual year over the previous year's until at the end of year 8 , if the interest rate is 676. compounded semi-annually? Note: Draw the cosh flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution.Michelle Hunter received $250,000 from an insurance company after her hus- band's death. Michelle wants to deposit this amount in a savings account that earns interest at a rate of 6% compounded monthly. Then she would like to make 120 equal monthly withdrawals over the 10-year period such that, when she makes the last withdrawal, the savings account will have a balance of zero. How much can she withdraw each month?Congratulations! You won a prize in a contest! There are two choices: take the $500 prize today or wait one year and take the $500 prize a year from now. If the interest rate is 3%, compounded annually, how much interest would you be giving up if you took the prize a year from now?
- Jon’s grandfather was planning to give him $11,000 in 14 years. Jon has convinced him to pay him $7,000 now, instead. If Jon invests this $7,000 at 6.5% compounded continuously how much money will he have in 14 years? a) What type of problem is this? Select an answer Future Value -Simple Interest Future Value - Compound Interest Future Value - Continuously Compounded Future Value - Ordinary Annuity Future Value - Annuity Due Present Value - Ordinary Annuity Present Value - Annuity Due b) How much will he have? (round to the nearest cent) $If you want to buy a car in two years that cost $20,000.00, how much should put away every month if you can get a six percent nominal annual interest rate-compounded monthly?Calculate the total interest earned, if you save $68 each month, Starting today, for 11 more years, if the annual interest rate is 9.6 and interest is compounded on a monthly basis?