Bing gave $800 to her cousin. As a token of gratitude, her cousin gave her $1, 520 at the end of the year instead of $800. If she looks at this as an investment, what is the annual rate of return?
Q: After receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in…
A: The future value of deposit is the value of the current deposits on a future date based on the…
Q: wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10…
A: Deposit A Amount = 10,000 End of year deposits N = 10 years Deposit B Amount = 10,000 End of year…
Q: Tim purchased a bounce house one year ago for $6,500. During the year it generated $4,000 in cash…
A: Given details are : Purchase price of house = $6500 Cash flow during the year form the house = $4000…
Q: Twenty years ahead of her retirement, Kelly opened a savings account that earns 5% interest rate…
A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…
Q: Jamie is the beneficiary of P1,000,000 insurance policy. Instead of taking the money as lump sum,…
A: Given, Amount of insurance policy is P1,000,000 Term is 10 year 5% compounded annually.
Q: Tara invests $3000 today and another $1,500 a year from now until 5 years. She also increases her…
A: Investment Now(Yo) = $ 3000 For 10years Investment in Y1 = $ 1500 for 9 years Investment in Y2 = $…
Q: . Your grandmother has established a trust fund that pays you $3,500 each year for 15 years. upon…
A: Given: CF=$3500t=15 yearsr=7% i.e 0.07
Q: How much money can he receive on his 18th birthday, if he decided to withdraw all the money at once?
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Cody invested the profit of her business in an investment fund that was earning 2.25% compounded…
A: Given, The amount of withdrawal is $5000. Interest rate is 2.25% compounded monthly.
Q: Kate invested $1,200 4 years ago at 7% per year for 7 years. 2 years ago, she invested $2,000 at…
A: Here, Details of First Investment are as follows: Investment Amount is $1,200 Investment made 4…
Q: Ophria invested well and plans to retire now because she has $2,300,000 in hre tax-deferred IRA…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: what will be the size of each installment?
A: Information Provided: College fund interest rate = 4% p.a. Tax free account = 3.5% compounded…
Q: Bill wants to give Maria a $520,000 gift in 6 years. If money is worth 6% compounded semiannually,…
A: From the question, Interest rate (i) = 6% Number of years (n) = 6 years FV = Future Value of gift PV…
Q: Maria Alvarez is investing $300,000 in a fund that earns 4% interest compounded annually. What equal…
A: Compound interest refers to addition of interest to principal sum of loan or deposit.
Q: Katie recently retired and met with her financial planner. She arranged to receive $40,000 the first…
A: Solution-a1=$40,000a2=$40,000+$210 =$40,210
Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…
A: The present value or discounting value method is an important part of the time value of money. It…
Q: Denise has $180,983 saved for her upcoming retirement and will make no further contributions. She…
A: Interest rate = 5% compounded semiannually Annuity amount (A) = $5000 per quarter for 20 years (80…
Q: Yumi's grandparents presented her with a gift of $21,000 when she was 8 years old to be used for her…
A: in this problem we have to find out future value and from that we have calculate annual amount can…
Q: Yoko invested s4000 in a fund for 2 years and was paid simple interest. The total interest that she…
A: Investment (P) = $4000 Period (T) = 2 Years Interest amount (I) = $400
Q: Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded…
A: Formula Future value = PV*(1+i)n Where PV - Investment i.e. $20,000 i - Semi annual interest rate…
Q: When Xian was born, his father Brian deposited a sum of money for the college education of Xian.…
A: Present Value = Future Value x 11+in
Q: Christina invested $3000 five years ago and earns 2 percent annual interest. By leaving her interest…
A: Invested 3000 N = 5 Interest rate = 2% She is earning interest in her account and the amount of…
Q: A mother of two wishes her twin siblings to withdraw an amount of P20,000 each year starting on the…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Cardo invested a certain amount at 20% simple interest per year. After 8 years, the interest she…
A: solution concept under simple interest the interest is calculated on the principal amount only .…
Q: Anne purchased an annuity from an insurance company that promised to pay her $11,000 per year for…
A: Part of each $11,000 payment represents a return of the original $87,450 investment, plus $22,550…
Q: Two sisters, Joan and Jocelyn decided to save money in funds that earns 14% compounded annually but…
A: Time value It tells that value received today has more value than that of receiving the same value…
Q: Kourtney and Khloe Kardashian are receiving slightly different incomes from investments that they…
A: Present value = Annual Payment * PVCF ( in the case where no. of years are given) Present value =…
Q: When Christian bought his home, he borrowed $315,700 at 4.2% interest, compounded monthly for 25…
A: Loan amount (PV) = $315,700 Interest rate = 4.2% Monthly interest rate (r) = 4.2%/12 = 0.35% Period…
Q: A wealthy donor wants to establish a scholarship that pays an award of $1,000 in perpetuity at the…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: Mercy receives the following cash flow from her rich uncle every year and she wants you to help her…
A: Definition of Present value of money: The money having today on hand has more value than having in…
Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…
A: The future value function can be used for determining the future value of a present sum, or the…
Q: Isabella placed $5,000 in a savings account which earns 5.3% interest, compounded every year. How…
A: The formula used as follows: A=P×1+rn
Q: Phyllis invested 49000 dollars, a portion earning a simple interest rate of 4 percent per year and…
A: Given, Amount invested is $49000 Interest earned on both the investments is $2320
Q: oney for her two years old child education in the amount of fifty thousand pesos at the rate of 10…
A: Given information : Current age of kid 2 Initial investment made 50000 Interest rate 10.50%…
Q: Mdm. Chan, a retiree, purchased an annuity product with a lump sum of $200,000. The annuity promises…
A: An annuity is the fixed payment that an investor receives from an investment or fixed deposits made…
Q: Belinda invested a sum of money for her two-year-old child education in the amount of fifty thousand…
A: Compounding is a strategy for calculating the future value (FV) of current cashflows using a…
Q: Joseph Ray just received an inheritance of $35,775 from his great aunt. He plans to invest the funds…
A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…
Q: A couple purchases a home in 1995 for $45,000 and finds that today in 2017 it is worth $95,000. They…
A: Inflation rate is 3%
Q: Ann was given a gift of $10,000 by her grandparents. She has a choice between 2 accounts to invest…
A: Option 1- Present value of gift (PV)= $10,000 Interest rate (r)= 2.35% compounded monthly= 0.001958…
Q: Jodan received an amount of GHc 1000 from his grandpa as a birthday gift. He decides to invest the…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: Suppose Brianna invests $1300 each year for 5 years, in annuity that pays 6% annual interest,…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, P = 1300 r = 6% n = 5 years
Q: Leon and Heidi decided to invest $3,000 annually for only the first eight years of their marriage.…
A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…
Q: London purchased a piece of real estate last year for $84,500. The real estate is now worth…
A: Income = Investment * ( 1 + total return )
Q: Jacqueline invested the profit of her business in an investment fund that was earning 2.50%…
A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…
Q: orez wants all of her grandchildren to go to college and decides to help financially. How much must…
A: Amount that Lorez must give = A * (1 + i)-t Where, t = No. of years = 18 i = interest rate = 6% A =…
Q: Yumi's grandparents presented her with a gift of $18,000 when she was 8 years old to be used for her…
A: Given data; Investment at the age of 8 years = $ 18000 interest rate in investment = 3.5% compounded…
Q: Jeffrey invested the profit of his business in an investment fund that was earning 3.50% compounded…
A: FV = 0 N = 7*2 PMT = 5000 rate = (1 + 3.50%/12)^6 - 1 = 1.7628% use PV function in Excel
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- Anne purchased an annuity from an insurance company that promised to pay her $11,000 per year for the next 10 years. Anne paid $87,450 for the annuity, and in exchange she will receive $110,000 over the term of the annuity. a. How much of the first $11,000 payment should Anne include in gross income? (Do not round intermediate calculations.) b. How much income will Anne recognize over the term of the annuity?Anne purchased an annuity from an insurance company that promised to pay her $17,000 per year for the next 10 years. Anne paid $130,050 for the annuity, and in exchange she will receive $170,000 over the term of the annuity. Required: a. How much of the first $17,000 payment should Anne include in gross income? Note: Do not round intermediate calculations. b. How much income will Anne recognize over the term of the annuity?Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for the next 10 years. Anne paid $145,000 for the annuity, and in exchange she will receive $200,000 over the term of the annuity. a.) How much of the first $20,000 payment should Anne include in gross income? (Do not round intermediate calculations.) Amount to be included $ b.) How much income will Anne recognize over the term of the annuity? Income Recognized $
- Annalise will deposit into her investment account $4,500, $1,000, and $5,500 at the end of Years 1, 2, and 3, respectively. What will her account be worth at the end of the Year 3 if she earns an annual rate of 6.15 percent? O $11,632.02 O $10,381.25 O $9,725.12 O $11,526.50 None of these answers are correctFive years ago, Teresa purchased an investment property for $189,795. He sold it today for $249,999. Based on this information, what was her annualized rate of return? 5.66% 7.59% 6.18% 5.75%If Sarah invests in the normal savings account, her net value (after taxes) five years from now will be: $?
- Yoko invested s4000 in a fund for 2 years and was paid simple interest. The total interest that she received on the investment was $400. As a percentage, 00 what was the annual interest rate of her investment? If necessary, refer to the list of financial formulas.Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Ryan inherited an annuity worth $3,280.16 from his uncle. The annuity will pay him five equal payments of $800 at the end of each year. The annuity fund is offering a return of . Ryan’s friend, Sebastian, wants to go to business school. While his father will share some of the expenses, Sebastian still needs to put in the rest on his own. But Sebastian has no money saved for it yet. According to his calculations, it will cost him $30,044 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $4,200 at the end of every year in a mutual fund, from which he expects to earn a fixed 7% rate of return. It will take approximately for Sebastian to save enough money to go to business school.Mary is going to receive a 33-year annuity of $9,800. Nancy is going to receive a perpetuity of $9,800. If the appropriate interest rate is 11 percent, how much more is Nancy’s cash flow worth? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- Rita borrows $2000 from her parents. She repays them $2600. What is the interest rate if she pays the $2600 at the end of (a) Year 2? (b) Year 3? (c) Year 6? (d) Year 10?Assume that a couple invests $1000 upon the birth of their daughter. Assume that the investment earns 6.8% compounded annually. What will the investment be worth on the daughter’s 18th birthday?Belinda invested a sum of money for her two years old child education in the amount of fifty thousand pesos at the rate of 10 ½% compounded quarterly. After a year, she added another fifty thousand on her investment. She withdraw the total amount of her investment when her child entered college at the age of 18. What is the maturity value of her investment?