Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. How much would you need to deposit in the account each month?
Q: Suppose you want to have $500,000 for retirement in 30 years. Your account earns 9% interest. a)…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much will…
A: Each month $100 is to be put into an account earning 8% interest compounded monthly. Periodic…
Q: How much will you need to save per month to have $200,000 after 12 years, if your account earns 5%…
A: The formula used as follows: Future value of annuity=Payment×1+rn-1r
Q: You deposit $100 each month into an account earning 6% interest compounded monthly. a) How much…
A: Future value refers to the amount worth in future time which is deposited today by an investor at…
Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 6% interest. How…
A: The future value of an annuity is the future worth of a series of cash flows at a certain rate of…
Q: You deposit $400 each month into an account earning 6% interest compounded monthly. How much will…
A: FV of annuity=P1+rn-1rwhere,P=Periodic paymentr=rate per periodn=number of periods
Q: If you deposit $9,000 in a bank account that pays 10% interest annually, how much will be in your…
A: Calculate the future value as follows: Future value = Amount * (1+ rate)^ years
Q: You deposit $4000 in an account earning 8% interest compounded monthly. How much will you have in…
A: Given information ; P = 4000 r = 8% or 0.08 Compounded monthly so n = 12 t = 15 years
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 6% interest. How…
A: Using excel PMT function = PMT(rate,nper,pv,fv)
Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a. How much will…
A: Time value tells that money received today by an individual has more value than that of receiving…
Q: You want to have $50,000 in your savings account 12 years from now, and you’re prepared to make…
A: The annuity refers to the regular payment or receipt that lasts over a period of time. The annuity…
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much…
A: a) Hence, amount of $149,035.94 have in account in 30 years.
Q: Suppose you want to have $800,000 for retirement in 30 years. Your account earns 9% interest…
A: The amount that need to be deposited can be calculated using the formula of future value of annuity.…
Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…
A: Future value of ordinary annuity(cash flow due at the end of year) can be calculated by using this…
Q: You have $500,000 saved for retirement. Your account earns 10% interest. How much will you be able…
A: MONTHLY PAYMENT FORMULA: monthly payment =principal×rm1-1+rm-m×nwhere,r = rate of interestm =…
Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a) How much…
A: Monthly Deposit = 200 Monthly Compounding Time Period (n) = 240 months Interest Rate (r) = 3%/12 =…
Q: Suppose you want to have 800000 for retirement in 35 years. Your account earns 5% interest. hoe…
A: Amount that need to be deposit every month can be calculated using the formula of future value of…
Q: Suppose you want to have $700,000 for retirement in 25years. Your account earns 9% interest. a) How…
A: In this we need to calculate the future value factor monthly and than calculate the monthly payment…
Q: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 9% interest. a)…
A: a) Hence, amount to be deposited in each month is $624.37.
Q: Suppose you want to have $300,000 for retirement in 20 years. Your account earns 4% interest. a) How…
A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…
Q: You have $500,000 saved for retirement. Your account earns 10% interest. How much will you be able…
A: Payout annuity is a type of annuity in which initially the account has a sum of money that is later…
Q: You will deposit $30,000 per year into an account beginning today that pays 13 percent per year.…
A: Annual deposit (P) = $ 30,000 Annual interest rate (r) = 13% Future value (FV) = $ 1,000,000 Period…
Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 4% interest. How…
A: Using excel PMT function
Q: Suppose you want to have $500,000 for retirement in 20 years. Your account earns 8% interest. How…
A: Future value of each month payment (FV) = $500,000 Number of years to retirement = 20 Number of…
Q: Suppose you want to have $300,000 for retirement in 25 years. Your account earns 9% interest. a)…
A: According to the time value concept, a sum of money today has more purchasing power than the same…
Q: Suppose you have decided to put $200 at the end of every month in a savings account that credits…
A: Future value of annuities includes the amount being deposited and amount of compounding interest…
Q: How much would you need to deposit in the account each month?
A: Annuity Payments: These are payments of equal intervals made. Examples of annuity payments include…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. a)…
A: Introduction Future Value: The value derived for the money invested today at a future point of time,…
Q: You have $500,000 saved for retirement. Your account earns 8% interest. How much will you be able to…
A: Monthly withdrawals refers to the periodic payment made by the bank. Periodic payment can be made…
Q: You deposit $100 each month into an account earning 4% interest compounded monthly. a) How much…
A: Amount Deposited Each month is $100 Interest rate is 4% Compounded monthly Time period is 15 years…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 7% interest. a) How…
A: Monthly payment refers to the periodic payment. These payments are made upto a fixed period or as…
Q: Suppose you want to have $400,000 for retirement in 35 years. Your account earns 4% interest. Round…
A: The present value is the current value of the amount that has to be paid or received in the future.
Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…
A: Dear student we need to use excel for calculation of monthly deposit(PMT) by using PMT functions.
Q: Suppose you invest $120 a month for 5 years into an account earning 9% compounded monthly. After 5…
A: Computation:
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much will…
A: Monthly deposit (P) = $ 100 Interest rate = 8% Monthly interest rate (r) = 8%/12 =…
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How…
A: Future Value $ 6,00,000.00 Time Period 25 Interest Rate 10%
Q: You deposit $300 each month into an account earning 8% interest compounded monthly. a) How much will…
A: a) Money in account in 30 years: Solved using Financial Calculator PMT = -300 N = 12 * 30 = 360 I/Y…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 8% interest. a) How…
A: The amount to be invested each month will be compounded and will form a corpus und at the end of the…
Q: If you initially invest $3500 in an account that earns 4.7% interest compounded daily, how much will…
A: Initial investment (PV) = $3500 Interest rate (r) = 4.7% Number of compounding per year (m) = 365…
Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: Suppose you want to have $800,000.00 for retirement in 30 years. You plan to make regular monthly…
A: Monthly deposit It is the minimum value a person will deposit in an account every month. It is the…
Q: uppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest. How…
A: The provided information are: Future value (FV) = $600000Present value is (PV) = $0Annual interest…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your…
A: In the given question we require to compute the future value from following details: Present value =…
Q: You have $300,000 saved for retirement. Your account earns 10% interest. How much will you be able…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Suppose you invest $140 a month for 6 years into an account earning 7% compounded monthly. After 6…
A: Compounding can able to increases earnings generated from an asset by reinvesting it to achieve…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How…
A: The question given is related to the annuity payouts, which refers to a series of payments paid over…
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much…
A: Annuity amount = $100 Monthly rate of interest = 0.6667% (8.00% / 12) Number of months = 300 months…
Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Computation as follows: Hence, amount to be deposited in each month is $1515.02.
Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. How much would you need to deposit in the account each month?
Step by step
Solved in 3 steps
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?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 annuity
- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
- Suppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How much would you need to deposit in the account each month? b) How much interest will you earn?Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How much would you need to deposit in the account each month? b) How much interest will you earn?Suppose you want to have $700,000 for retirement in 25 years. Your account earns 5% interest. How much would you need to deposit in the account each month?