A company contributes $180 per month into a retirement fund paying 4.30% compounded monthly and employees are permitted to invest up to $2,400 per year into another retirement fund which pays 4.30% compounded annually. How large can the combined retirement fund be worth in 26 years?

Q: How much money would you have to deposit monthly for five consecutive years starting at the end of…

A: Future value will be computed as the total sum of value of series of payments (i.e. PMTs) in future…

Q: You have a habit of drinking a cup of Starbuck coffee ($2.00 a cup) on the way to work every morning…

A: The price of a Starbuck coffee = $2 per cup Number of year = 30 years Interest earned = 5% Per day…

Q: What are the present worth and the accumulated amount of a 10-year annuity paying $10,000 at the end…

A: here we calculate the present worth by using the given information which are as follow-

Q: Calculate the effective annual interest rate for continuous compounding?

A: The effective annual interest rate , also called effective annual rate (EAR) is the real return on…

Q: What is the effective interest rate per payment period for an interest rate of 12% compounded…

A: The interest rate that accounts for the compounding periods over the course of a repayment plan is…

Q: What is the effective interest rate per month if the interest rate is 9% compounded continuously?

A: The effective interest rate refers to the rate of interest that paid on an investment after to take…

Q: John invested P100,000 at an interest of 9% compounded quarterly. How many years should John invest…

A: Compound interest (also known as compounded interest) is the interest on a loan or deposit that is…

Q: One invested $10,000 five years ago. The first three years, the investment earned 12% compounded…

A: here we calculate the amount of money accumulated in five years as follow;

Q: How much interest is included in the accumulated value of $3200 paid at the end of every six months…

A: P = $3200t = 4 year(Semi annually)r = 6.5% Here, P = Principalt = Timer = Rate of interest

Q: You deposit $5000 each year into an account earning 8% interest compounded annually. How much will…

A: Uniform annual deposit (A) = $5000The interest rate on the deposits is 8% compounded annually. So i=…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Nominal rate of interest (r) =8% compounded quarterly.Withdrawal at the end of the 4th quarter is…

Q: What will be the required monthly payment torepay a loan of $72,000 in eight years if the…

A: Interest is the cost of capital. There are primarily two ways to calculate the rate of interest.-…

Q: What is the smallest integer-valued annual compound interest that will result in an investment…

A: smallest integer-valued annual compound interest that will result in an investmeñt tripling in value…

Q: SHOW COMPLETE AND ORGANIZE SOLUTION. If you are to invest your money, which is a better option: 12%…

A: Let principal = 10,000 Time period = 10 years Amount = P(1+r)N Case 1 - 12% compounded monthly A =…

Q: How long will it take for P1,000.00 to amount to P1,346.00 if invested at 6% compounded quarterly?

A: According to the formula of compound interest rate we get: A=P(1+rn)nt Here A=P1,346.00 P=P1,000.00…

Q: Which is the better investment, a fund that pays 5% compounded annually or one that pays 4.8%…

A: Discretely compounded interest is determined and added to the head at explicit spans (e.g., every…

Q: Consider a 30,000 dollars investment which has an annual interest rate of 10%. What is the value at…

A: In the mentioned question, we are given the investment and annual interest rate. With the given…

Q: How many years will it take an investment to triple if the interest rate is 8%compounded?

A: The rule of 115 can be used to calculate the number of years that take an investment to triple.

Q: You plan to retire in 30 years and plan to contribute the same amount of money each year to your…

A: The annual withdrawal in the post-retirement period is $100,000. This continues for 20 years and…

Q: Lisa has a bank loan for $50,000 to pay for her apartment loan. This loan is to be repaid in equal…

A: Monthly compound interest-it means that the interest is added back to the principle each month.…

Q: just inherited $250,000 from my uncle’s estate. I would like to place that amount in the bank and…

A: Given the information: Inherited amount = $250000 Time = 15 years Interest rate = 12%

Q: On July 1 and September 1, you placed $2,000 into an account paying 3% compounded monthly.…

A:

Q: At a certain interest rate compounded quarterly, P1T will amount to $5T in 10 years. What is the…

A: Given  Present value P=$1T Future value F= $5T Time = 10 years We have to calculate the rate of…

Q: If a rate of 3% interest is compounded monthly, the effective rate of interest is somewhat less than…

A: The genuine interest rate attached to an investment or loan is described by the effective yearly…

Q: You deposited $400 in a savings account 20 years ago, earning 5% compounded quarterly.  Today, you…

A: In economics and finance, present worth (PW), also called present discounted value, is the value of…

Q: company borrowed $100000 from a bank at an interest rate of 10% compounded monthly. The loan will be…

A: This annuity problem where equal payment will be made across the 36 periods to payoff the loan…

Q: Mr. Zzz deposited $25,000 in a bank which offers a compound annual interest of 7%. How long will it…

A: Given,  Principal = $25,000  Rate of interest = 7%  Amount = $35,800

Q: On July 1 and September 1, you placed $2,000 into an account paying 3% compounded monthly.…

A: Given: Amount placed on July 1 and September 1=$2000 Compounded monthly rate=3% To find: Amount as…

Q: Find the present value of a $50,000 annuity payable each three months for ten  years but deferred…

A: Given that, Payment at the end of period (R) = $50,000 Periodic rate (i) = 0.12/3 = 0.04 as there…

Q: A $200,000 loan is to be repaid in equal yearly payments over 25 years at an interest rate of 4%…

A: First, we need to calculate the yearly payment for the loan. This can be done using the formula for…

Q: The following equation describes the conversion of a cash flow into an equivalent equal- payment…

A: A cash flow diagram is a graphical representation of the inflows and outflows of cash over a…

Q: A person needs $19,000 immediately as a down payment on a new home. Suppose that she can borrow this…

A: Compounding in economics refers to the process of earning interest on both the principal amount…

Q: How quickly will 500$ will grow to 2000$ pesos if interest is 5% compounded quarterly?

A: Given:Amount=A=$2000Principal=$500Rate of interest=r=5%Number of times compounded in a year…

Q: Suppose you borrow $5,000 at 7.25% interest for 14 months.  What is the maturity value?

A: Simple interest is one of the easiest method to compute the amount to be received at the end of…

Q: What single amount at the end of the sixth yearis equivalent to a uniform annual series of $7,500per…

A: Annual uniform amount = 7500 Time = 10 years = 12 years Interest Rate = 10%

Q: mon is planning to retire in 20 years. He wishes to deposit a regular amount every six months until…

A: Retirement in 20 years After Retirement = 80,000 for 10 years r = 8%