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A2-4d
This question consists of four main parts. When performing the calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places.
d. You are saving $200 per month. What annual percentage
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- A2-4c This question consists of four main parts. When performing the calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places. c. You are saving $200 per month at 6% annual percentage return (APR) with monthly compounding. How many years will it take for your savings to accumulate to $10,000? (Hint: Use the financial calculator for this calculation, and clearly show the inputs you use.)a1-3bii Use the present value and future value formulas to solve the following problems. Confirm your answers with your financial calculator. Show both methods of calculation in your answers. When performing your calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places. You estimate that you will need $350,000 to buy a house some time in the future. If your bank account pays an annual interest rate of 3%, how much money must you deposit now to purchase the house in 10 years’ time?How much would you have in your savings account if you put $1,902 in an account today that pays 8% for 7 years? For this problem, use the mathematical formula to find the answer and show all of your work (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- a1-3bi Use the present value and future value formulas to solve the following problems. Confirm your answers with your financial calculator. Show both methods of calculation in your answers. When performing your calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places. You estimate that you will need $350,000 to buy a house some time in the future. If your bank account pays an annual interest rate of 3%, how much money must you deposit now to purchase the house in one year’s time?For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)5. You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The amount of money in your savings account in a given year can be modeled by the following function. P(t)=100(10)^.009 a. Evaluate P(0) and explain what it means in this context. b. Approximately how many years will it take for the amount of money in your bank account to reach $120? c. What year will you have $120 in your savings account?
- Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) Ordinary (deferred) annuity, (2) Annuity due, and (3) Growing annuity. One can find a annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity. Growing annuities are often used in the area of financial planning. Their analysis is more complex and often easier solved using a financial spreadsheet, so we will limit our discussion here to the first two types of annuities. The future value of an ordinary annuity, FVAN, is the total amount one would have at the end of the annuity period if each payment (PMT) were invested at a given interest rate and held to the end of the annuity period. The equation is: Each payment of an annuity due is compounded for one…1. You have 30 years left until retirement and want to retire with $5,000,000 saved. You plan to deposit 1,200 dollars into the account each month beginning one month from today. You currently have $20,000 saved. Calculate the rate of return (APR) you need to earn to reach your retirement goal. (Enter percentages as decimals and round to 4 decimals) 2. Tom Tom Co. has been working on new technology. This new technology will be available in the near term, and the firm's CEO anticipates the first cash flow to be $300,000, received four years from today. Subsequent annual cash flows will grow at 3% in perpetuity. Calculate the value of the technology today if the discount rate is 10%. (Round to 2 decimals)If you deposit $2 comma 7002,700 today into an account earning an annual rate of return of 1313 percent, what will your account be worth in 4040 years (assuming no further deposits)? In 5050 years? Question content area bottom Part 1 Click on the table icon to view the FVIF table: LOADING... . In 4040 years, your account will be worth $enter your response here. (Round to the nearest cent.)
- You invest $ 500 today and receive $ 750 at the end of 5 years. a. DETERMINE the internal rate of return, using hand interpolation. Write answer to 2 decimal places. b. SUBMIT the procedures via the spreadsheet icon. Show all your computations. -3. If you invest $2000 now, and receive 3 yearly payments of $100 each year plus $2500 in the 3rd year, a. what is the Internal Rate of Return (IRR) b. Interpret your resultsYou plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what rate of return must you earn? Question 5 options: 6.02% 5.24% 4.73% 7.55% 7.11%