Suppose I want to be able to withdraw P500,000 at the end of five years and withdraw another P600,000 at the end of six years, leaving a zero balance in the account after the last withdrawal. If I can earn 4% on my balances, how much must I deposit today to satisfy my withdrawal needs?

Q: You have 20 years left for your retirement. You wish to accumulate a sum large enough by that time…

A: P = $1,036.67Explanation:To solve this problem, we can use the future value of an annuity formula.…

Q: suppose you put $1500 into your IRA this year. You do not make any additional contributions to the…

A: given, pv = $1500 r=10.5% n = 42 years

Q: You just retired with $179,500 in your retirement account. How much will you be able to withdraw at…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Suppose you have $60,000 in a savings account earning 2%. You would like to make equal quarterly…

A: The time value of money is a concept in finance that evaluates the worth of the securities that cash…

Q: You decide to make annual deposits of $300.00 for 12 years into an account which pays 5% compounded…

A: Annual deposits = $300 Time duration = 12 years Interest Rate = 5%  The future value of the annuity…

Q: How much must you deposit each year into your retirement account starting now and continuing through…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: suppose you want to be able to withdraw $4,800 at the end of each month for the next 20 years. How…

A: The present value of the annuity factor is used when there is an equal series of cash flows and the…

Q: If you deposit OMR 20930 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: When interest is compounded multiple times in a year: Future value = Present value *(1+r/m)n*m  r is…

Q: You would like to have ​$   59,000 in   15 years.  To accumulate this​ amount, you plan to…

A: The concept of time value of money tells us that worth of money keeps on changing with passage of…

Q: Suppose that you wish to buy a new home that will cost you $452,847. You must put $80,000 down, and…

A: Negative amortization means interest on the loan is not paid due which the loan amount tends to…

Q: Suppose that starting at age 25, you make steady contributions to a retirement account (with initial…

A: In the above question we are given Future value=815000 Rate=7% number of years=40 We have to…

Q: You would like to have $800,000 when you retire in 30 years. How much should you invest each quarter…

A: Amount required (FV) = $800,000 Quarterly interest rate (r) = 0.005 (i.e. 0.02 / 4) Number of…

Q: How much must you deposit into an account today so that you can have $25,000 in twelve years? Assume…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: What will be the final balance at the end of year 23 if you make a deposit of 88,000 at the end of…

A: Future values refer to the concept of determining the future worth of current money deposits.

Q: you have $500000 saved for retirement. Your account earns 3.8% interest. How much will you be able…

A: The present value of an annuity refers to the current value of a series of equal cash flows or…

Q: Suppose you start saving today for a $50,000 down payment that you plan to make on a house in 5…

A: Down payment = $50,000Interest rate = 6% (Daily compounding)Number of years = 5 years

Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…

A: Here, Deposit Amount  today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…

Q: How much would you need to deposit in an account now in order to have $2000 in the account in 10…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: If you deposit OMR 7387 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Time value of money says that a dollar today is worth more than a diollar in future. Future value is…

Q: André is looking ahead to his retirement. He wants to have $580,000 in his savings account when he…

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

Q: Suppose you invest $200 a month for 6 years into an account earning 8% compounded monthly. After 6…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: You want to be able to withdraw $8500 from an account at the end of each 6-month period (that is,…

A: Given that;Periodic withdrawal amount is $8500Interest rate is 2.9% per year

Q: Suppose you need to hand $52,569 in an account 25 years from today and that account pays 6%. How…

A: Future vaue =52569Interest rate=6%

Q: andré is looking ahead to his retirement. He wants to have $580,000 in his savings account when he…

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

Q: Pedro, who deposited P500,000.00 today  with a financial Institution M, agreed with the latter that…

A: Monthly interest rate = Annual interest rate / Number of months in a year = 8%12 = 0.666666667%…

Q: you want to withdraw $100 from an account in year one. Also, you want to withdraw $200, $250 and $70…

A: Present value is the equivalent value today of the future money based on time value of money and…

Q: Suppose you deposit $380 today, $565 in one year, and $929 in two years in an account that pays an…

A: We need to calculate future value here:It has formula, FV = PV * (1+r)^nwhere, PV is present valuer…

Q: If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of…

A: Time value of money :— According to this concept, value of of money in present day is greater than…

Q: How much should be deposited now into an account earning 8.4 % interest per year, compounded every 6…

A: Compound = 6 months = Semiannually = 2Interest Rate = r = 8.4 / 2 = 4.2%Payment = p = $1500Time = t…

Q: You plan to deposit $500 in a bank account now and $600 at the end of the year. If the account…

A: Solution: The amount in account after second deposit will be the future value of first deposit and…

Q: You want to withdraw $ 54,777 from your account at the end of one year and $ 10,521 at the end of…

A: As per the given information:Withdrawals at the end of the one year = $54,777Withdrawals at the end…

Q: Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off…

A: Balance amount=$4100 Interest rate=15% Time period=3 years 3 years monthly payment=$142.13 3 years…

Q: You plan on depositing $370 every month for the next 11 years in an account that pays a 0.8%…

A:

Q: Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter that…

A: Initial deposit (I) = P500,000.00 Annual interest rate = 0.08 Monthly period (n) = 14 months Value…

Q: Suppose you deposit $1,500.00 into and account 7.00 years from today into an account that earns…

A: Future value is an estimated value of a current asset at an assumed growth rate over a certain…

Q: in order to withdraw $200, 000 two years now, how much do you need to deposit to in a bank account…

A: Future value required=$200000Period=2 yearsInterest rate is 6%Compounding quarterly.

Q: Suppose you deposit shs 5,000,000 into an account earning 4 percent interest, compounded monthly. a)…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…