Roger decides to start an investment account by depositing $5,000 today. In one year he will invest $500. He plans to make annual investments that increase by $100 each year ($600 in year two, $700 in year three, etc.). If he earns 9% on his investment, what will his account be worth 6 years from today, assuming he compounds annually
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou plan on saving $15,200 this year, nothing next year, and $17,500 the three years after that.You will deposit these amounts into your investment account at the end of each year. What willyour investment account be worth at the end of year six (six years from now) if you can earn 15percent on your funds?You are contributing money to an investment account so that you can purchase a house in six (6) years. You plan to contribute seven payments of $2,000 a year--the first payment will be made today (t = 0), and the final payment will be made six years from now (t = 6). If you earn 11 percent in your investment account, how much money will you have in the account six years from now (at t = 6)? Select one: a. $20,856 b. $15,350 c. $19,567 d. $17,412 e. $11,683
- Joe Pierce has been offered the opportunity of investing $178,556.90 now. The investment will earn 8% per year and at the end of its life will return $500,000 to Joe. How many years must Joe wait to receive the $500,000?Roy is going to receive a payment of $5,000 one year from today. He earns an average of 6% on his investments. What is the present value of this payment?Thomas Taylor plans to invest $24,300 a year at the end of each year for the next seven years in an investment that will pay him a rate of return of 9.1 percent. How much money will Thomas have at the end of seven years? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $
- An aunt gifts you with $12,000, but only after you invest it for one year. She givesyou two choices.1. Invest the entire sum at 4.2% compounded monthly.2. Invest $1000 at 7.1% each month in an annuity that pays every month.(a) What is the future value of the money invested with method 1?(b) How much interest is earned with method 1?(c) What is the future value of the money invested with method 2?(d) How much interest is earned with method 2?(e) Which method would you choose?Susan plans to make an investment today which promises to return to her $3,000 each year for ten (10) years beginning one year from today. The investment account will earn 6% compounded annually. At the end of ten years, the investment account balance will be zero.Question: Rounding to the nearest whole dollar, what should be the amount of Susan's original investment?Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the account earns 17%, how much will be in the account at the end of the 20years? Once attends church once in a year during the watch night and uses the occasion to pay his tithe of GH¢50. Assuming his tithe account in Heaven grows at the rate of 24% what is the PV of his investment if he lives for the next 20 years. Smart heard about the Ghana Govt’s ‘Smart Borrowing’ concept and borrowed GH¢15,000 to have a successful wedding and pledged his wife & future uncertain children as collateral security. He wants to pay off the loan in 12 monthly instalments otherwise the bank will come for his wife & children born to them since they were pledged as collateral for the loan. What should the monthly repayments be if the annual interest rate is 18%?
- Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the account earns 17%, how much will be in the account at the end of the 20years? Once attends church once in a year during the watch night and uses the occasion to pay his tithe of GH¢50. Assuming his tithe account in Heaven grows at the rate of 24% what is the PV of his investment if he lives for the next 20 years. Smart heard about the Ghana Govt’s ‘Smart Borrowing’ concept and borrowed GH¢15,000 to have a successful wedding and pledged his wife & future uncertain children as collateral security. He wants to pay off the loan in 12 monthly instalments otherwise the bank will come for his wife & children born to them since they were pledged as collateral for the loan. What should the monthly repayments be if the annual interest rate is 18%? Godfred & Sam are both at 40. At 20, Sam started saving GH¢100 per month at a bank that pays him 10% per annum towards his retirement. 10 years…Sally enters into an investment that will guarantee her 5% year if she deposits $2045 each year for the next 10 years. She must make the first deposit one year from today. How much will she have when she makes her last payment 10 years from now? (Please use excel function = FV) to solveJoe has an amount of money X that he would like to invest in some way. He has two options: He can invest the money in an account that pays an annual effective rate of interest of 9%. Joe would receive an interest payment at the end of each year and reinvest it in another account that pays an annual effective rate of interest of 6%. This will continue for 15 years. Joe can lend the money to his friend Ted, who will repay Joe with a series of 15 yearly payments. Each payment will be $100, and the first payment will occur in one year. Joe will reinvest these payments at an annual effective rate of interest of 6%. Joe notices that the amount of money that he will have at the end of 15 years is the same under either option. To the nearest dollar, what is the amount of money X? A $406.00 B $417.00 C $752.00 D $1,063.00 E $1,111.00