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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.David wants to accumulate at least $40,000 by depositing $1,000 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does he need to make in order to reach his goal? Round to the next payment b. How long will it take David to reach his goal? year(s) month(s) Express the answer in years and months, rounded to the next payment period
- Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,900 per month for twenty years. (a) How much money must she deposit if her money earns 7.8% interest compounded monthly? (Round your answer to the nearest cent.)___________ $ (b) Find the total amount that Holly will receive from her payout annuity. Thank you!Cynthia wants to accumulate at least $40,000 by depositing $1,200 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does she need to make in order to reach her goal? Round to the next payment b. How long will it take Cynthia to reach her goal? year(s) month(s) Express the answer in years and months, rounded to the next payment periodAaron wants to accumulate at least $60,000 by depositing $2,000 at the end of every month into a fund that earns interest at 4.50% compounded monthly. a. How many deposits does she need to make to reach her goal? 0 Round to the next payment b. How long will it take Aaron to reach her goal? 0 years 0 months SUBMIT QUESTION SAVE PROGRESS 00 700 30 SUB US
- Suppose Jennifer deposits $500 in an account at the end of this year. $400 at the end of the next year, and $300 at the end of the following year. If her opportunity cost rate is 7.5 percent, (a) how much will be in the account immediately after the third deposit is made? (b) How much will be in the account at the end of three years if the deposits are made at the beginning of each year?Answer the following questions. Show your complete solution. 1. Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity? 2. Cheska is saving for her dream cellphone. She deposits 2,000 pesos at the end of each month that earns 5% per year compounded semi-annually. Find the amount in the account after 1 1⁄2 years. 3. Janine wants to but a lot which cost 1 million pesos. She plans to give a down payment of 20% of the cost, and the rest will be paid by financing at monthly interest rate of 2% for 10 years in equal monthly installments. What will be the monthly payment? 4. Christopher wants to have 50,000 pesos in 4 years by saving equal regular payments. He can make a deposit at the end of each month in account that earns 8.5% per year compounded quarterly. How much must he deposit to achieve his…d. Jackline plans to start her small family business in ten years' time. She has decided to deposit Sh.200,000 at the end of each year for 10 years in a savings account earning 10% per annum. 1
- Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How much will she have then, if the interest rate is 6.48% compounded weekly and her account starts with $13487 already deposited?Arthur wishes to have 80,000 in her bank account. How much suould she deposit in a bank account that pays 8% compounded quarterly so that after 6 years and 5 months, she can have her desired money? Choices are: 31, 889.7541648, 110.24584 and 50,000A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals. Years until retirement: 30 Amount to withdraw each year: $120,000 Years to withdraw in retirement: 25 Interest rate: 7.5% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. Required: Now assume that the inflation rate is 3%. Consequently, when your friend retires she will want to withdraw $120,000 each year in today’s dollars. What amount is she planning to receive in year 31 (the end of her first year of retirement)? How much does she need to have in retirement at the end of year 30 in order to receive her retirement payments assuming that these retirement payments continue to increase at 3% per year throughout her retirement?…
