Suppose an individual makes an initial investment of $2,000 in an account that earns 7.2%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to $0). (Round your answers to the nearest cent.) (a) How much is in the account after the last deposit is made? $   (b) How much was deposited? $  (c) What is the amount of each withdrawal? $  (d) What is the total amount withdrawn?

Q: Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded…

A: FV=PV×1+Rmm×n where, FV = FUTURE VALUE PV= PRESENT VALUE R = RATE/ APR m= NO OF COUMPOUNDING IN A…

Q: Suppose an individual makes an initial investment of $2500 in an account that earns 7.8%. compounded…

A: Given information: Initial investment is $2,500 Interest rate is 7.8% Number of periods is 12 made…

Q: A person plans to make equal monthly deposits into this account for 20 years at the rate of 6%…

A: Present Value of annuity refers to the value of regular cash flows or payments at equal intervals at…

Q: Suppose you deposited $1,000 in a credit union account that pays 7% with dailycompounding and a…

A: Excel Spreadsheet:

Q: If you save $1,900 at the beginning of every year for ten years, for how long can you withdraw…

A: Annuity refers to a cashflow screen of equal amount at equal time intervals or in simple words…

Q: uppose an individual makes an initial investment of $1,200 in an account that earns 6%, compounded…

A: We will apply the concept of time value of money here. As per the concept of time value of money the…

Q: Starting three years from today, you make equal annual deposits of $5,000 into an account which…

A: Effective annual rate is calculated using the formula: EAR=1+rmm-1=1+12%22-1=1.062-1=12.36%

Q: Suppose a certain manufacturer deposits $3,000 at the beginning of each 3 month period for 8 years…

A: Gien Information, Deposit = $3,000 Interest Rate = 8% Compounding Frequency = quarterly    Formula…

Q: Suntech Distributors, Inc., deposits $4,000 at the beginning of each 3-month period for 7 years in…

A: Formula: A = P [ 1 + ( r / N )NT ] Interest : Interest is a fee charged on the borrowed amount.

Q: You are making $5,000 monthly deposits into a fund that pays interest at rate of 6% compounded…

A: We need to use the concept of time value of money (TVM) to solve the question. According to TVM, the…

Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…

A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…

Q: Your company estimates it will have to replace a piece of equipment at a cost of P5,800,000 in 5…

A: Given information: Future cost of equipment amounted to P5,800,000 Number of years is 5 Interest…

Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…

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

Q: Suppose you inherited $100,000 and invested it at 7% per year. What is the most youcould withdraw at…

A: INTEREST RATE  7.00% YEARS OR PERIOD  10 PRESENT VALUE 100000

Q: A depositor puts $30,000 in a savings account that pays 4% interest, compounded quarterly. Equal…

A: A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a…

Q: The owner of Oak Hill Squirrel Farm deposits $3,000 at the end of each quarter into an account…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Suppose a certain manufacturer deposits $3,000 at the beginning of each 3 month period for 6 years…

A: a) The question gives the following information:

Q: Find the annual deposit

A: Compound interest is the interest on interest. Under this method the interest is calculated by…

Q: CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: 6. A company wishes to spend P40,000 for a new office copier and decides to set up a sinking fund to…

A: Money Required (Future Value) = 40,000 Present Value (value at start) = 0 N = 3 years Quarterly…

Q: You deposit $200 each year in an account for 15 years and then $400 each year in the same account…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: If for the next 30 years you place OMR 3,610 in equal annual year-end-deposits into an account…

A: Future value of annual year end deposits is calculated by future value of ordinary annuity formula.…

Q: An accountant wants to withdraw $30,000 from an investment at the beginning of each quarter for the…

A: Time value money is the concept widely used by the management and individual to determine the…

Q: Can you please explain how to work this problem out in detail?   Bob Bryan made deposits of $1,000…

A: The annual interest rate is 8% compounded quarterly. The interest per quarter will be (8% ÷ 4) = 2%.…

Q: A man is planning to retire in 20 years. He can deposit money for his retirement at 8% compounded…

A:

Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…

A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%

Q: If the interest is deposited into a non interest bearing account B, what is the balance in account B…

A: The first investment is effectively a payout annuity where the interest amount is withdrawn each…

Q: How long will it take an RESP to grow to $200,000, if the plan owner contributes $250 at the end of…

A: The payment flow which continues for a definite time period and terminates after lapse of time…

Q: Suppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month…

A: Future Value of Cash Flow = Amount Invested * ( 1+r)n Where r is Rate of Interest and n is period…

Q: How long will it take an RESP to grow to $200,000, if the plan owner contributes $250 at the end of…

A:

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Future value of annuity due = P * [ (1+r)^n  - 1 ] /r  * (1+r) Where, r = rate per period i.e.…

Q: A company will need $40,000 in four years for a new addition. To meet the goal, the company will…

A: According to the concept of future value and present value, investor is estimating the nearest value…

Q: CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next…

A: Compound Amount= A=P(1+r)nt   A= FInal amount P= Initial Investment r= interest rate t= No. of times…

Q: Suppose you deposit $1,000 today in an account that pays 5% interest at the end of each year. If…

A: Here, Deposit Amount is $1,000 Interest Rate is 5%

Q: At the end of each quarter, Patti deposits $1,800 into an account that pays 10% interest compounded…

A: Future Value of Annuity = Present Value x [{(1 + i)n - 1} / i]

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A bank offers and investment account that has an annual interst rate of 9.9%, compounded quarterly.…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual…

A: 1. . 1 Future value  =Present value * (1+Interest rate)No. of years…

Q: If $1,500 is deposited in a savings account at the beginning of each year for 20 years (a total…

A: The formula to compute future equivalent worth of present value:

Q: Suppose an individual makes an initial investment of $1400 in an account that earns 7.8%, compounded…

A: Future value of a cashflow is the present value of the cashflow compunded at future date at…

Q: Supposed that P2,000 is deposited each year , on a continues basis into a savings account that pays…

A: Annual deposit (P) = P2000 Interest rate = 6% Mathematics constant (e) =…

Q: A company has had record profits and decided to use some of the profits to pay for manufacturing…

A: Annuity is the series of payment made by an investor at fixed interval for specified period of time.…

Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…

A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…

Q: Suppose $10,000 is deposited into an account that earns 10% per year for 5 years. At that point in…

A: Value of the Corpus=10,000×1.105=$16,105.10 Thus, the value of the corpus after 5 years is…

Q: Barbara wants to accumulate $25000 by the end of 4 years. She starts making quarterly deposits in…

A: We need to use this equation for quarterly payment(PMT) and future value(FV) of annuity PMT…