Suppose you wish to accumulate $20,000 over a 10-year period in an account that pays a steady 5% per year, compounded quarterly. What would be the quarterly payments needed to accumulate the desired amount
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Suppose you wish to accumulate $20,000 over a 10-year period in an account that pays a steady 5% per year, compounded quarterly. What would be the quarterly payments needed to accumulate the desired amount?
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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 annuityYou make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?Suppose you plan to deposit $1000 into an account next year, and increase the deposit each year by 5%. How how much will you have in the account after 10 years if the account earns an effective annual return of 9.25%?
- Suppose you invested $1000 every 3 months over a 15 year period. If money earns an annual rate of 6.5% compounded quarterly, how much would be available at the end of the time period. How much is the interest earned? Show all your calculationsSuppose you invested $1000 semi-annually over a 10 year period. If money earns an annual rate of 12% compounded semi-annually, how much would be available at the end of the time period. How much is the interest earned?You make two annual payments of $2,000 each (the first payment is made one year from today) into a savings account with 10% annual interest. What is the present value of these payments at the time of the last payment?
- You are making $200 monthly deposits into a savings account that pays interest at a nominal rate of 3% per year, compounded monthly. What is the future equivalent value of this account after five years?If you wish to save $875,000 in three years, how much would you need to deposit at the start of each quarter to achieve this goal assuming an interest rate of 5.4% compounded quarterly?Suppose you have the opportunity to make an investment in a real estate venture that expects to pay investors 750 dolar at the end of each month for the next eight years . You believe that a reasonable return on your investment should be an annual rate of 15 percent compounded monthly.a. How much should you pay for the investment?b. What will be the total sum of cash you will receive over the next eight years?c. What do we call the difference between (a) and (b)?
- Suppose on your 21st birthday you begin making quarter payments of $500 into an account that pays an annual rate of 8% compounded quarterly. If you continue the payments until your 31st birthday (10 years), how much money will be in the account? How much of it is interest?Suppose you have the opportunity to make an investment in a real estate venture that expects to pay investors $750 at the end of each month for the next eight years. You believe that a reasonable return on your investment should be an annual rate of 15 percent compounded monthly.a. How much should you pay for the investment?b. What will be the total sum of cash you will receive over the next eight years?c. What do we call the difference between (a) and (b)?do solve it asap Suppose you plan to deposit $1000 at the end of each month into an account for eight months. If the account pays a simple interest equal to 15% annually, what is the value of your deposits at the end of the year?
