Boris wants to save $27,000.00 for the down payment on a house. He already has $2,700.00, and he will make bi-weekly deposits for the next 2 years (at the end of each period). The interest rate is 1.225% compounded monthly. How much will the bi-weekly deposits be? a) This question deals with the value of an annuity + . b) There will be payments. The payment period is c) The payment amount is $ d)
Q: Spencer would like to purchase a new car for $12,000. How much will his monthly payments be if he…
A: The monthly payment amount can be calculated with the help of present value of annuity function.
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A: The amount at the end of 15 months can be calculated with the help of future value of annuity…
Q: money should he have
A: A retirement plan refers to the financial strategies of saving, investments, or distributing money…
Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…
A: Given: Future value = $50,000 Interest rate = 4.5% Years =10
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A: Given: Cost of vacation 5000 Monthly savings 400 Time of deposit Month-end Annual…
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A: Present value is the current worth of the future payments that are to be received. As per time value…
Q: JOSH WANTS TO BUY A HOUSE AND WOULD NEED A $200,000 LOAN. HE WILL AMORTIZE THE LOAN FOR OVER 15…
A: Solution Firstly lets calculate the annual installment Annual installment = loan amount/…
Q: How much (in $) would the account be worth after 10 years?
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…
A: Annuity: Annuity helps the investors to receive regular disbursements, for that the investors are…
Q: Luis has $170,000 in his retirement account at his present company. Because he is assuming a…
A: This account works as a combination of two separate account: fixed principal of $170,000 compounded…
Q: Toni Torres wants to save $1,200 in the next two years to use as a down payment on a new car. If her…
A: An annuity series in which an investor saves the amount at the end of each period for a specified…
Q: Art wants to know how much he'll have to invest today to receive an annuity of $8,000 for three…
A: The computation of amount of investment is as follows:The investment needed today is the present…
Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…
A: Note:- “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: Chris has saved $500,000 for retirement. If he set up a payout annuity for 30 years in an account…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…
A: Payout annuity is the amount that an investor receives at a regular interval after a certain period…
Q: You would Ilike to have $59,000 in 5 years for the down payment on a new house following graduation…
A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…
Q: Jean-Rene wants to make a lump-sum deposit today such that at the end of every three months for the…
A: Given Information: Interest rate = 8.75% compounded semi-annually Lump-sum payment = $10,000 Payment…
Q: Bob and Pat want to purchase a vacation home in ten years and need $45,000 for a down payment. How…
A: Time value tells that money received today has more value than that of receiving exact value later…
Q: What is the annuity payment?
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Larry wants to have $500,000.00 in 20 years. He found an annuity that is paying 3% with monthly…
A: A study that proves that the 1value of money today is higher than the future value of money is term…
Q: Roland just put RM1,000 in the fixed deposit and intend to leave it there for 10 years. If the bank…
A: Investment amount = RM 1,000 Annual interest rate = 16% Semi annual interest rate = 16%/2 = 8%…
Q: As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Lloyd would like to save $4,300 at the end of every year for the next 3.5 years in a savings account…
A: Interest earned: If the cash basis of accounting is being used, then the amount of interest earned…
Q: Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r FV = $80,000 n = no. of compounding period 10*12…
Q: Avishek is saving up to buy a boat. He will make deposits of $787.50 at the end of every two weeks.…
A: The annuity payments that are made at the beginning of the year are called annuity due and the…
Q: Andrew has an annuity that pays 4.4% annual interest compounded monthly and at the end of each month…
A: We need to calculate future value of annuity for the above question Formula: FV=PMTi(1+i)n-1 Where,…
Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…
A: The value of current payment or upcoming flow of payments at any future date when flow of payment…
Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…
A: Since you have asked a question with multiple sub-parts, we will solve the first three questions for…
Q: Ken is paying off a loan by making a $50 down payment and then $50 payments at the end of every…
A: Loan is the amount borrowed by the company or individual for the purpose of fulfilling the financial…
Q: Bozo decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…
A: The periodic payment is the amount that will be paid every period until the loan amortized which…
Q: You would like to have $59,000 in 5 years for the down payment on a new house following graduation…
A: Future Value= $59,000; No. of periods= 5*4= 20 years, Interest rate per period = 4.24/4=…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: It can be solved using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The interest…
Q: Ruth availed of a cash loan that gave her an option to pay P5,000 monthly for 1 year. The first…
A: Periodic Payment = P5,000 Time Period = 1 Year Frequency = 12 Interest rate = 5% Compounded…
Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…
A: The annuity is a series of cash flow wherein an equal amount is paid every period.
Q: Kobe is retiring in 19 years, and wants to save some money. He will make bi-weekly deposits of…
A: Bi-weekly Deposit = $513.38 Time Period = 19 Years Interest Rate = 2.750% compounded semi-annually
Q: Christine would like to know the value of their savings, assuming that they deposit $750 each month…
A: Monthly deposit (P) = $750 Growth rate (g) = 3% Period = 25 Years Number of deposits (n) = 25*12 =…
Q: Karen wants to have $22,559 in her investment account in 5 years. If her bank offers an annual…
A: Following details are given in the question : Future value = $22559 Time period = 5 years Interest…
Q: Connie wants to have an annuity payment of $2000 at the end of every three months. How much should…
A: Present value of an annuity payment refers to the sum amount of money that will be required today in…
Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…
A: Given information, Time Period = 4 years*12 =48 periods (when period is monthly) Future Value of…
Q: Keira wants to invest $4,300 in an account with an interest rate of 7.2% that is compounded MONTHLY.…
A: Information provided: Term = 9 years Interest rate = 7.2% compounded monthly Principal = $4300…
Q: You would like to have $53,000 in 13 years. To accumulate this amount, you plan to deposit an…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…
A: To find the loan amount one has to deduct the down payment from the total loan amount.
Q: Your friend Demetrius has an annuity that pays 4.6% annual interest compounded monthly and at the…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: I want to save for a vacation. My plan is to put $200.00 each month into an ordinary annuity that…
A: A study that proves that the 1value of money today is higher than the future value of money is term…
Q: Tom wants to put aside $120 at the end of each month into an account earning 6% compounded monthly,…
A: Here we have to use the concept of annuity and concept of time value of money to find the present…
Q: Suppose that you would like to have $25,000 to use as a down payment for a home in five years by…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: Suppose you are 35 years old and would like to retire at age 65. Furthermore, you would like to have…
A: Future value is amount that an investment will become after a certain period of time. It will…
Q: The Nelson family wants to save money to travel the world. They plan to invest in an ordinary…
A: Annuity means a series of finite number of payments which are the same in size and occurred at equal…
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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 annuityAvishek is saving up to buy a boat. He will make deposits of $787.50 at the end of every two weeks. The interest rate is 8.875% compounded weekly. How much will he have at the end of 1 years? a) This question deals with the value of an annuity + . b) There will be payments. The payment period is + c) The payment amount is $ d) The effective interest rate per period is % e) The present/future value is $You would Ilike to have $59,000 in 5 years for the down payment on a new house following graduation by making deposits at the end of every three months in an annuity that pays 4.25% compounded quarterly. (a) How much should you deposit at the end of every three months? (b) How much of the $59,000 comes from deposits? (c) How much of the $59,000 comes from interest? (Round UP to the nearest dollar. For example, $247) OPensyrooo n 21 l 1e0 (6)' s 6Tei 0hcc doirdW (b)Saaviz wDi 26. 7 1 0 59.000 6 00
- tion Sam needs a new roof for her house. She can pay cash, or pay by installments. Payments would be $217.91 monthly (at the end of every period) for 9 years. The interest rate is 2.675% compounded quarterly. a) This question deals with the value of an annuity b) There will be payments. The payment period is c) The payment amount is $ d) The effective interest rate per period is e) The present/future value is $ Time left 0:26:17 % (You would like to have $59,000 in 5 years for the down payment on a new house following graduation by making deposits at the end of every three months in an annuity that pays 4.25% compounded quarterly. (a) How much should you deposit at the end of every three months? (b) How much of the $59,000 comes from deposits? (c) How much of the $59,000 comes from interest? (Round UP to the nearest dollar. For example, $247) () afKobe is retiring in 19 years, and wants to save some money. He will make bi-weekly deposits of $513.38 (at the end of every period) in an investment account paying r2) = 2.750%. How much will he have when he retires? a) This question deals with the value of an annuity b) There will be payments. The payment period is c) The payment amount is $ d) The effective interest rate per period is e) The present/future value is $
- You would like to have $25,000 in 5 years for the down payment on a new house following college graduation by making deposits at the end of every three months in an annuity that pays 4.25% compounded quarterly. How much should you deposit at the end of every three months? How much of the $25,000 comes from deposits and how much comes from interest?Suppose that you would like to have $25,000 to use as a down payment for a home in five years by making regular deposits at the end of every three months in an annuity that pays 7.25% compounded quarterly. Determine the amount of each deposit. Round up to the nearest dollar. How much of the $25,000 comes from deposits and how much comes from interest?Please answer this question asap I will rate you for sure. Maria has leased an auto for 3 years at $200/month. If the money is worth 5%/year compounded monthly, what is the equivalent cash payment (present value) of this annuity? (Assume payments are made at the end of the each month. Round your answer to the nearest cent.)
- Samuel wants to make regular annual payments of size P dollars into an annuity that pays interest of an annual rate of 0.25 or 25%. He wants to have 1.5 times the invested amount in the account after 5 years. A) Determine the size, P of the required annual payment. B) Create a table and do a step by step calculation to verify your answer in part AYou plan to prepare for retirement by making monthly contributions $1,500 to a savings account that pays 10% interest per year, compounded continuously. 4. Determine the accumulated savings in this account after 30-year (360-month) investment. The accumulated savings in Part (a) will be used to provide a monthly annuity for the next 10 years after 30-year investment. What is the amount of the annuity if the interest rate and compounding frequency do not change? (a) (b)You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period. If your monthly payments are $76, how much will you have in your retirement fund after 40 years? $ . Round to the nearest dollar. Suppose you want to use this fund to buy a $392,000 houseboat when you retire in 40 years. How much do you need to deposit each month in order to achieve this goal? $ . Round to the nearest dollar. You decide to deposit $210 each month into the retirement fund, and retire when you can afford to buy your dream boat, which costs $347,000. How many months will you need to make payments before you can retire? months. Round to the nearest month.