A saving plan offered by the Charles Schwab Corporation offers 7% per year. How much money must be deposited into an account at the beginning of each of 9 years in order to have $79142 at the end of the year 9?
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A saving plan offered by the Charles Schwab Corporation offers 7% per year. How much money must be deposited into an account at the beginning of each of 9 years in order to have $79142 at the end of the year 9?
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- Use 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 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 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.
- Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
- You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.How much must be deposited at the beginning of each year in an account that pays 6%, compounded annually, so that the account will contain $40,000 at the end of 5 years? (Round your answer to the nearest cent.) Need Help? Read It Watch ItA retiree invests $8,000 in a savings plan that pays 6% per year. What will the account balance be at the end of the first year?
- te.4 If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per year, how much money will be in the account at the end of that time period?Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $ 2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 25 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25 The annuity will extend from the EOY 26 to the EOY 34 What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest annuity table for continuous compounding when i=8% per yearAnswer 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?