Gary decides to set up a retirement fund by depositing $182 at the end of each week for 17 years. How much will he have after 17 years, if the interest rate is 1.95%, compounded semiannually?

Q: avid deposits $2,000 per year at the end of the year for the next 20 years into an IRA account that…

A: The concept of time value of money will be used here. As per the concept of time value of money…

Q: Abby has decided to invest $60 at the end of each month into a retirement plan that has an annual…

A: Computation of the money that will be saved by Abby at the completion of 8 years is shown:

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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

Q: If she starts making deposit amounts in one year and her deposits increase at the inflation rate of…

A: Inflation:  The Wholesale Price Index's (WPI) annual percentage change in value is known as…

Q: Starting on the day he retires, Bob wants to receive payments of $10,000 at the beginning of each…

A: Present value of the amount is the worth of that amount in current times that is expected to be…

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: Marilyn wishes to retire at age 65 with $2,000,000 in the bank. At the age 21, she decides to begin…

A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

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

A: Here,

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: A man is planning to retire in 25 years. He wishes to deposit a regular amountevery three months…

A: Excel Spreadsheet: Excel Workings:

Q: After retirement, you expect to live for 25 years. You would like to have a $95,000 income each…

A: Here,

Q: Connie deposits $2000 at the end of each year into her Individual Retirement Account IRA. It earns…

A: Annuity: a contract that provides income for a specified period of years, or for life. Future value…

Q: At the age of 35 John began contributing 10,500 Php every month to a retirement fund. If his money…

A: Using excel nper function

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: Nilda expects to receive P20,940 at the beginning of each period per year in Social Security…

A: The series of payments at the beginning of each period is called an annuity due.

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: Indira is planning for her retirement. She calculates she will need to withdraw quarterly payments…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

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: When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest,…

A: Using PMT function in excel

Q: Shane has a retirement plan with an insurance company. He can choose to be paid either $450 per…

A: Solution:- Every rational person wants to pay fewer amounts. So, the better option will be the one…

Q: Today is Derek's 25th birthday. Derek has been advised that he needs to have $3,863,156.00 in his…

A: Future value required=$3863156.00Interest rate=r=9.0%Number of deposits=39 deposits

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: You decide to deposit $190 each month into the retirement fund, and retire when you can afford to…

A: The question requires finding out the number of payments in terms of the month when future value,…

Q: Andrew would like a retirement income of $3,000 per month (beginning of month payments) for 19 years…

A: Retirement income is $3000 per month Time period is 19 Years Interest rate is 3.6%

Q: andez wishes to have $368,765 in a retirement account 15 years from now. What payment would Noime…

A: There is need of proper planning for the retirement and proper planning lead to have good money on…

Q: Zachary has opened a retirement account that will pay 4% interest each year. He plans to deposit 8%…

A: Interest Rate = 4%   Year N (Time to last deposit) Salary Sample Working Deposit Sample Working…

Q: You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into…

A: The Future Value of Annuity Payments refers to the value of a series of cash flows (payments or…

Q: Kerry has a $1,973 per month mortgage payment. He decides to refinance his $204,000 balance at 5%…

A: Mortgage loan is a loan used either by real estate investors to raise funds to purchase real estate,…

Q: You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and…

A: Since, in this question fixed amount is invested each year. So, it is the question of annuity.…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.