Cyrus deposits a fixed monthly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $95,000 in 18 years. Assuming an APR of 3.4% compounded monthly, how much of the $95,000 will Cyrus ultimately deposit in the account, and how much is interest earned?

Q: ally into a life insurance fund for the next 5 years, at which time he plans to retire. Instead of a…

A: The given problem can be solved using FV and PMT function in excel. FV function computes amount…

Q: At the time of her grandson's birth, a grandmother deposits $9000 in an account that pays 8%…

A: We will use the below formula to calculate the future value   Future value = PV*(1+r)n Where PV -…

Q: Derek will deposit $1,169.00 per year into an account starting today and ending in year 5.00. The…

A: The FV of an investment refers to the combined value of the cash flows at a future date assuming…

Q: Janet Lopez wishes to establish a trust fund from which her son can withdraw $12,000 every six…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: James deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

A: Annuity refers to a stream of cash flows that is usually fixed and constant. The cash flows occur at…

Q: Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: David invests $300 into an account with a 2.3% interest rate that is compounded semiannually. How…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: In December 2020 Sally purchased an annuity that pays her $1,000 per month for 16 years. She paid…

A: Given in the question: Annuity purchased for = $150,000 During the year 2021, Sally has received the…

Q: Gary decides to set up a retirement fund by depositing $182 at the end of each week for 17 years.…

A: Calculation of Amount at the end of 17 years:To calculate the amount at the end of 17 years, the…

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: Chris has decided to create a retirement fund. He will deposit $250 at the end of each month for the…

A: An annuity is a stream of equal cash flows occurring at regular intervals.  the future value of an…

Q: Nine  years  from  now,  Sam  wants  to  have  an  amount  available  to  deposit  into  an  account…

A: ANSWER GIVEN ON THE NEXT SHEET

Q: To save money for her son's college tuition, Nicole invests $96 every month in an annuity that pays…

A: Future value of investment includes the amount deposited and interest being accumulated over the…

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: Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Present value is the current date value of the future expected cash flows of the annuity fund.…

Q: Bill started saving for his retirement when he was 37. Each month he depo $100.00 into an annuity…

A: Future value of amount includes the amount being that is deposited and amount of compounded interest…

Q: Mike joins a savings program where he deposits $1000 at the begint he will earn a perpetuity paying…

A: Here,

Q: Tom has decided to invest $400 quarterly for 4 years in an ordinary annuity a 8%. As his financial…

A: Quaterly investment amount is $400 Time period is 4 years Interest rate is 8% To Find: Cash value…

Q: Ava enjoys investing in annuity that will pay her $5,000 at the end of each month for 5 years after…

A: Monthly payment = $ 5000 Period = 5 Years Number of monthly payment = 5*12 = 60 Annual interest rate…

Q: Jerry wishes to retire at age 65. He wishes to receive an annuity that pays $50,000 per year…

A: Annuity refers to the amount to be withdrawn in the future for a specific time period. Present worth…

Q: how much money must be removed from the estate to purchase the annuity?

A: ==> The amount required on the child's 18th birthday to fund the annuity is calculated using PV…

Q: Troy is saving for his retirement 24 years from now by setting up a savings plan. He has set up a…

A: In this particular example we are required to find out the future value of annuity for 11 years and…

Q: Michael and Ellie plan on retiring 32 years from today. At that time, they plan to have saved the…

A: A deposit is a reserve amount of money that an individual keeps aside on a periodic basis to achieve…

Q: Geoff has paid $16,000 for a retirement annuity from which he will receive $1,582 at the end of…

A: Time, the value of money defines the money received today is more valuable than the money will…

Q: Goran plans to set aside money for his young daughter’s college tuition. He will deposit money in an…

A: Given: Future value of annuity = $71,000 Interest = 2.4%

Q: To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 2.4%…

A: We will apply the required formula to calculate the quarterly payment, we will take the future value…

Q: Ji Hyun's generous grandfather invests $1,000 when she is born into an index fund that produces a 7%…

A: Calculation of money will be in account.

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: Blushing Rose invests $1,000 into her Roth IRA. She can increase thisinvestment annually by $1,000…

A: The computation is as follows:

Q: James deposits $266.40 each month into an annuity account for his child's college fund in order to…

A: Interest earned refers to an amount accumulated as earnings over the investment value of the banks…

Q: To save money for his daughter's college tuition, Josh invests $279 every quarter in an annuity that…

A: Annuity means number of payments, which are equal in size and made at equal interval of time for a…

Q: Janet Lopez wishes to establish a trust fund from which her son can withdraw $15,000 every six…

A: The objective of the question is to find out the initial amount that Janet needs to deposit in the…

Q: In order to fund his son’s higher education, Abdullah decided to invest $1000 quarterly for 6 years…

A: Future value is the worth of the current amount in future specified date at given interest rate. The…

Q: A couple plans to save for their child's college education. What principle must be deposited by the…

A: The concept of time value of money will be used here. Money invested in an account grows due to the…

Q: . Kevin deposits $1423.62 each quarter into an annuity account for his child's college fund in order…

A: Quarterly deposits = $1423.62Future value = $85,000Period = 12 year

Q: At the time of her grandson's birth, a grandmother deposits $9000 in an account that pays 8%…

A: Effective annual rate is the actual rate of return earned on the investment, after considering the…

Q: Shauna wishes to establish a trust fund from which her son can withdraw $50,000 every six months for…

A: Future value (FV) could be a budgetary concept utilized to decide the worth of speculation or cash…

Q: Daniel owns a homestay that yields annual rent of RM30,000. There is a rent payment due today and…

A: The value of the amount after two years which is to be computed at given interest rates is termed as…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Future value is the value of the future cash flows being compounded at a predefined rate of interest…

Q: Frances plans to save money for a down payment on a house using an investment account that pays an…

A: An annuity is a stream of cash flows occurring on a periodic basis. The amount is usually fixed in…

Q: Shelby purchases a retirement annuity that will pay her $3,000 at the end of every six months for…

A: Present value of the money would be price that maximum price that can be paid for that kind of…