A 40 year old woman puts $1500 in a retirement account at the end of each quarter through 20 years then stops making further deposits. She keeps money in her account for the next 5 years. How much will she have in her account when she retires at the age of 65 if the bank pays interest at 6.4% compounded quarterly?

Q: Tracy wants to have $400,000 when she retires in 40 years' time. How much should she deposit at the…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: At age 18, Susan did nothing. She waited until she was 28 to start depositing $2000 per year at the…

A: Annuity, A = $ 2,000Interest rate, r = 12%Number of annuities = n = 65 - 28 = 37

Q: How much money will there be in the account?

A: solution A= R(1+i)n+1/i R= Contribution half year=$425 n= number of periods=48 years - 33 years =15…

Q: Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6…

A: Since Gabriela wants to withdraw a specific amount after a certain period of time, thus, it is…

Q: subsequent year until your 85th birthday. On that birthday you want to give $1,000,000 to your…

A: The time value of money acknowledges that, because of prospective earning potential, inflation, and…

Q: Starting at age 50, a woman puts $1800 at the end of each quarter into a retirement account that…

A: To estimate the account balance at the age of 65, we have to compute the future values of the 2…

Q: 11. Zoe has been depositing $900 every month into her retirement account for 35 years. The annual…

A: Depositing amounts regularly in an interest earning account will accumulate a large amount at the…

Q: Today, Tiffany is starting to save up for a downpayment on a house. Currently she has $635 in an…

A: Down payment refers to the initial sum that is extended towards the purchase of something for which…

Q: Karla is 32 years old and just opened an IRA with an APR (Annual Percentage Rate) of 3.71%…

A: Step 1:The deposit into the account each month is assumed to be paid at the end of each month. Hence…

Q: Warren reed just turned 40. He has decided that he would like to retire when he is 65? He tjinks he…

A: We have:Warren's Current Annual Contribution to Retirement account : $12,000Warren's current age :…

Q: Marilyn wishes to retire at age 65 with $2,000,000 in the bank. At the age 21, she decides to begin…

A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

Q: An individual is 42 years old. At the end of each month, he deposits $320 in a retirement account…

A: concept. 1. future value of annuity. FV = PMT * [(1+i)n - 1]i where , FV is future value of annuity…

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: Magnus wishes to have $1,500,00 when he retires in 44 years. What are the monthly payments he must…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = 150000 n = 44 r…

Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10…

A: The value of current asset for the future date based on the growing interest will be known as the…

Q: If Mr. X wants to retire at an age of 56 and he wants to accumulate in his bank account at that time…

A: Individuals save for retirement using various investment instruments in order to have sufficient…

Q: fter retiring, Sofía wants to be able to withdraw $8,500.00 every quarter from her account for 33…

A: There is need of proper planning for retirement and if you do that properly than you can achieve…

Q: 10. At age 24, Brandie decides to put $150 a month into an account that has a 6% APR until she…

A: Future value refers to the value of the current asset at some future date affected by the rate of…

Q: You contribute $1,000 annually to a retirement account for eleven years and stop making payments at…

A: Withdrawal using present value (PV) of funds at retirement refers to the strategy of calculating the…

Q: At age 27, Laura deposited $1000 into an IRA, it earns 7 7/8% compounded monthly.

A: In the given problem we have two sections which are being attended below.

Q: After retiring, Gabriella wants to be able to withdraw $7,000.00 every quarter from her account for…

A: Future Value: It is  the worth of a resource at a particular date.  It estimates the ostensible…

Q: J. Doe is turning 40 years old today and plans to retire in his 65h birthday. He starts making…

A: Annuity refers to the periodic payments either in the form of deposits or withdrawal that a…

Q: You contribute $1,000 annually to a retirement account for seven years and stop making payments at…

A: Using excel FV function

Q: After retiring, Rosetta wants to be able to withdraw $4,000.00 every month from her account for 26…

A: Amount to withdraw per month "PMT" is $4,000 Time period is 26 years Interest rate is 6% Compounded…

Q: DeAndre starts saving for retirement when he starts his first job at age 24. He deposits $2400 into…

A: Here, Particulars Values Quarterly deposits (PMT)  $2,400.00 Annual interest rate 3.20%…

Q: 28-year old Kathy has decided to contribute $3000 once every year into her retirement account that…

A:

Q: your aunt has $550, 000 invested at 5.5% and she now wants to retire. She wanted to withdraw $…

A: Amount invested = $550,000Interest rate = 5.5%Per year withdrawal = $45,000Amount to Leave =…

Q: How much does Jeanette need in her account when she retires?

A: Present Value: It is computed by discounting the future annuity cash payments by an appropriate…

Q: You are 40 years old and want to retire at age 60. Each year, starting one year from now, you will…

A: An annuity is a financial product or contract that provides a series of regular payments to an…

Q: A woman who is now 28 years old invests $40,000 in a retirement account. What interest rate,…

A: Using time value of money formulae to calculate rate of interest

Q: our friend has just celebrated her 30th birthday and accepted her first job. She must now decide how…

A: Your friend is undertaking her retirement planning. She has crystallized the annuity required in her…

Q: Laura opens a money market account that earns 3.0% per year by depositing $15,000. She then deposits…

A: Compounding is a technique through which future value (FV) of present amount is computed by using an…

Q: To start saving for retirement, Alexandra opens an RRSP that earns interest at a rate of 4.9%…

A: The future value is useful to investors and financial planners, as they use it to estimate how much…

Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…

A: We need to calculate the persent value of annuity  by using this formula.    PV of annuity =CF*…

Q: A couple plans to retire in 25 years. At that time, they would like to have enough money in an…

A: The objective of this question is to find out the present value of an annuity due, which is the…

Q: After retiring, Valeria wants to be able to withdraw $36,500.00 every year from her account for 27…

A: Amount to withdraw every year "PMT"  is $36,500 Time period "N" is 27 years Interest rate "I/Y" is…

Q: Sharon has worked for a company with a retirement program, and today is retiring from her job with…

A: We need to use annuity due formula to calculate annual payment of…

Q: what will be the balance of her account after 30 more years assuming the same 8% interest

A: PRESENT VALUE:The concept of present value (PV) is a fundamental principle in finance, used to…

Q: Kate is 28 years old today and is beginning to plan for her retirement . She wants to set aside an…

A: Computation:

Q: Sherry has a goal of retiring with $427,480 by making weekly deposits into an investment account…

A: Given :- future value = $427,480Annual interest rate= 1.1% compounded weeklyExplanation:We know that…

Q: Starting at age​ 50, a woman puts ​$1360 at the end of each quarter into a retirement account that…

A: It is a case of the future value of the annuity that first starts on a quarterly basis for 10 years…

Q: JACK plans to retire after 20 years. Deposit account in a bank for this He thinks to open it. The…

A: Retirement Time (N) = 20 years Interest rate = 12% p.a. Deposits every quarter End of quarter…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.