How much Alex must deposit annually if he wants to have $800,000 in 25 years by making equal annual end-of-the-year deposits into an account paying 6% interest annually.
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Q: What is the future worth of a series of equal yearly deposits of $6,000 for 6 years in a savings…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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A: Given: Particulars Amount Amount(PMT) $1,550 Years 10 Interest rate 4.50%
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A:
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A: Monthly Compounding Interest Rate = 5.88%/12 = 0.49% per month Time Period = 5 years × 12 = 60…
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A: Future value of annuity =P*[(1+r)^n-1]/r Where, P = annual payment r = rate of interest n = no. of…
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A: The future value of annuity helps an investor or an individual to know the future value of their…
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A: Future value of a value is the amount which the grow from the principal amount to future amount with…
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A: Monthly payment(PMT) of a credit card amount can be calculated by using this equation PMT…
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A: Excel Spreadsheet: Excel Workings:
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A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Assume you deposit $5,200 at the end of each year into an account paying 10 percent interest. a.…
A: deposit made at the end of each year = $5200 interest rate annum = 10%…
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A: Present Value of Annuity: It represents the present worth of the future cash flows stream and is…
Q: If Trey opens an account with $7,500 and plans on depositing $1,500 every year-end, how much will he…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
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A: Compounded annually means at the end of every year, interest shall be added back to the principal…
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A: Monthly deposit (P) = $ 5000 Interest rate = 7% Monthly interest rate (r) = 7%/12 =…
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A: Solution:- When a loan is taken, it is either paid back in lump sum mode or installments. In…
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A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: You deposit $5000 at the beginning of each year into an account earning 3% interest compounded…
A: Introduction: Annuity Due: It refers to the series or stream of equal payments made at the beginning…
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A: Given information : Expected amount 1000000 Time period 15 Interest rate 7% Effective…
Q: If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of…
A: To solve this question we have to use the formula of Future Value of ordinary annuity. The formula…
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A: Annual payments he will receive = $95000 Time period = 18 years Interest rate = 8% Compounding =…
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A: Future value (F) = P15,000 Time period (n) = 15 years Rate of interest = 6% (compounded annually)
Q: Daniel deposits $20,000 into an account earning interest at 6% per year compounded monthly. He…
A: Information Provided: Initial deposit = $20,000 Interest = 6% compounded monthly Withdrawal = $1200…
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Q: a.) What is the monthly rate? b.) How many total deposits?
A: Information Provided: Amount = $750,000 Term = 4 years Interest rate = 15% compounded monthly
Q: Harry plans to deposit $3,000 at the beginning of each year into a savings account earning 2.75%…
A: The amount which is deposited at the beginning of each period is called as annuity due. The period…
Q: Tess wanted to have P100,000 on her bank account at the end of 8years. She plans to deposit an…
A: Annuity refers to series of annual payment which are paid or received at start or end of specific…
Q: Craig is saving for a $3500 sound system. He plans to deposit $175 at the end of every 3 months into…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Sam invests $ 3500 into an account earning 9% interest compounded quarterly. How long will it take…
A: We need to use NPER formula in excel to solve this problem.
Q: Juan has a goal of saving up $56,397 by making biweekly (26 per year) deposits into a savings…
A: GIVEN, FV = $56,397 M=26 PER YEAR N=9 R=0.6%
Q: 35 years
A: SOLUTION:- General formula for future value when interest is compounded annually is FV=P(1+r)n…
How much Alex must deposit annually if he wants to have $800,000 in 25 years by making equal annual end-of-the-year deposits into an account paying 6% interest annually.
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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. 2,0000.9264Suppose that Jacob would like to invest at the end of each month for the next 15 years into an account paying 6.72% compounded monthly in order to accumulate $10,000 at the end of that time? How much money must Jacob deposit into the account each month? How much interest will he have earned?Derek will deposit $1,169.00 per year into an account starting today and ending in year 5.00. The account that earns 7.00%. How much will be in the account 5.0 years from today?
- How much should Joseph have in a savings account that is earning 2.50% compounded monthly, if he plans to withdraw $2,050 from this account at the end of every month for 6 years? Round to the nearest centJohn contributes $5,000 per month into an account. How much will he have in the account after 25 years if the account earns at an annual interest rate of 4.5% compunded yearly?At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8% compounded annually. How much is in the account today? How much would be in the account if the deposits were made at the beginning of each year (PMT Type) than at the end of each year? (Use Future Value of an Annuity) Suppose your opportunity cost (interest rate/year) is 11% compounded annually. How much must you deposit in an account today if you want to pay yourself $230 at the end of each of the next 15 years? How much must you deposit if you want to pay yourself $230 at the beginning of each of the next 15 years? Bruce invested $1,250 (present value - enter as a negative number) 10 years ago. Today, the investment is worth $3,550 (future value). If interest is compounded annually, what annual rate of return did Bruce earn on his investment? (Use Solving for r - Rate of Return- on a Lump Sum) Mario wants to take a trip that costs $4,750 (future value), but currently he only has $2,260…
- You want to be able to withdraw $45, 000 from your account each year for 25 years after you retire. You expect to retire in 15 years. If your account earns 9% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?Muaz will need $130,000 in 4 years to buy a piece of property. He plans to save money by making equal quarterly deposits into an account earning 6.1% per year compounded quarterly. What is muaz quarterly deposit.If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of 6%/year compounded monthly, how much will he have on deposit in his savings account at the end of 5 yr, assuming he makes no withdrawals during that period? (Round your answer to the nearest cent.) $ Need Help? Master It
- You want to have $2,000,000 in your savings account seven years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 5.25 percent interest, what amount must you deposit each year?Edgar wants to have $600,000 in his retirement account in thirty years.if he begins with a single deposit of $5000 how much would he need to deposit at the end of each quarter in an account earning 9% compounded quarterly in order to meet his goal?If Jackson deposits 100 dollars at the beginning of each month in a savings account earning interest at the rate of 8%/year compounded monthly, how much will he have on deposit in his savings account at the end of 6 yr, assuming that he makes no withdraws during that period?