MWINYMatt plans to start his own business once he graduates from college. He plans to save $1,400 every six months for the next five years.If his savings earn 10% annually (or 5% every six months), determine how much he will save by the end of the fifth year. (FV of $1, PV of$1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.)Total savings

Future value annuity The future value of an annuity is the value of a group of installments at a…

Answered: Matt plans to start his own business…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tom plans to save $92 a month, starting today, for 18 years. Dick plans to save $92 a month for 18 years, starting one month from today. Both Tom and Dick expect to earn an average return of 5.4 percent APR on their savings and both will make the same number of deposits. At the end of the 18 years, how much more (in $) will Tom have than Dick? Answer to two decimals.
You currently have $12,000 saved up in your bank account. You believe that 2 years from now, some of your generous relatives will give you a combined gift of $5,000 as a college graduation present. If you can earn 4.5% annual compound interest on your savings, how many years will it take you, from today, to be able to afford the car you'd like to purchase, which costs $25,000?
After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and deposit $8,000 a year for the first 6 years (t = 1 through t = 6) and $16,000 annually for the following 6 years (t = 7 through t = 12). The first deposit will be made a year from today. In addition, your grandfather just gave you a $40,000 graduation gift which you will deposit immediately (t = o). If the account earns 9% compounded annually, how much will you have when you start your business 12 years from now? a. $324,529 b. $344,653 c. $333,819 d. $293,067 e. $342,904
Mike Branson invested his summer earnings of $6000 in a savings account for college. The account pays 2.5% interest. How much will this amount to in 6 months? Mike's savings will amount to $ in 6 months. (Round to the nearest cent as needed.)
Jill will have reached her goal of saving $23,000 to buy a car if she puts away $420 a month in a 7% annual interest savings account for four years. Select one: True False
Matt plans to start his own business once he graduates from college. He plans to save $2,000 every six months for the next four years. If his savings earn 8% annually (or 4% every six months), determine how much he will save by the end of the fourth year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)
An insurance agent has been attempting to convince you to purchase an savings plan towards your retirement but you are not convinced of its value. After all, you are young, and have many years to prepare for this. He proposes that you save $325 at the beginning of every month for 30 years, in an account that pays 12% annual interest, compounded monthly. Required: a) Calculate the value of your savings at the end of 30 years. Please answer this question showing all working.
Use a financial calculator or computer software program to answer the following questions: a) Melanie is trying to save money for retirement and has a future goal of $750,000 at the end of 20 years. Determine the present value of her goal using a discount rate of 12%. b) How would the present value change if the $750,000 is to be received at the end of 15 years instead? Explain the impact and show your work?
Yu plan to deposit $1,000 in Year 1, $1,200 in Year 2 and $2,000 in Year 4 in your savings account. Youthink that you can earn 6% per year. How much will you have in your account in Year 6?
You plan to start your own business and are investing today to grow some seed money. You have $15571 to invest and aim to have $29610 in 7 years. What interest rate must you earn to meet your goal? Include 2 decimal places. Answer:
Rodney would like to save $57,000 over the next 15 years. How much must he deposit at the beginning of each month into his savings account if the account earns j12-4.8%? Your Answer: Answer
ohn decides to save some money. He deposits $500 at the end of each year. With an annual interest rate of 10%, what is the future value of his entire savings at the end of the 10th year? (Hint: Use online calculator for an annuity problem)

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