To prepare for retirement, you are going to deposit money into a pension plan account every month for the next 25 years. The pension plan has a 6.96% annual rate that compounds monthly. How much money will be in the account after 25 years if for the next 25 years you deposit $465.86 into the pension plan every month?  First find the interest rate per period to four decimal places: i = Next find the total number of deposits: n =  Finally, find the total amount of money in the account after 25 years: FV =

Q: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 5% interest. How…

A: The retirement amount after 25 years (FV) is $700,000. The period is 25 years. The rate of interest…

Q: Use the monthly payment formula to answer the question. Round your answer to two decimal places, if…

A: Purchase Price = $648,000Down Payment rate = 10%Compound = monthly = 12Interest rate = r = 7.92 / 12…

Q: Use the formula for the value of an annuity to solve:To save for retirement, you decide to deposit…

A: The future value of the annuity is the total value of all the payments which occurred regularly at a…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: You make $10,000 deposit 1 year from now, $15,000 deposit 3 years from now and $20,000 deposit 5…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: If you make quarterly deposits of $415.00 into an ordinary annuity earning an annual interest rate…

A: Future value of an annuity depends on the regular payments and interest rate applicable on the…

Q: How much should you be willing to pay for an annuity that begins in 3 years and pays $100 dollars…

A: The monthly discount rate, expressed as a percentage, is an important financial measure used to…

Q: Suppose that ​$ 2,500 is set aside each year and invested in a savings account that pays ​8%…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: Answer the following problems. Show your solutions. Annuity 1. How much money will you accumulate by…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How much interest will you earn?

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: You have decided to start a savings plan for your retirement. You plan to make an annual deposit of…

A: Given information: Annual deposit (PMT) = $90,000 Number of years in accumulation phase (n) = 8…

Q: Find the amount needed to deposit into an account today that will yield a typical pension payment of…

A: The calculation of present value of future cash flows is reflective of calculation of present sum of…

Q: you for the next 6 years, with your first deposit one month from today. If your savings earn 12.05%…

A: As per the given information: Amount deposited every month = $650Period = 6 yearsInterest rate =…

Q: Suppose you deposit $2000 in an individual retirement account ( IRN) that pays interest at 6%…

A: Deposit amount on starting = $2000 Compounded monthly rate = 6% for first two years Compounded…

Q: how much money will be in the account? How much of it is interest?

A: Annuity payments are the fixed periodic payments that an investor or depositor makes into an…

Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 900000 in a…

A: APR: The annual interest rate that is charged to the borrowers is known as the annual percentage…

Q: You have decided to start a savings plan for your retirement. You plan to make an annual deposit of…

A: The objective of the question is to calculate the future value of a series of annual deposits of…

Q: You currently have $250,000 in your retirement account. What equal annual amount can you withe each…

A: We will have to use the concept of time value of money to solve this.

Q: It is now the beginning of the year. Assume that, starting at the end of the year, you will make…

A: The future value of annuity is calculated using following equation Future value = P×(1+r)n-1r Where,…

Q: Suppose that you are to make annual deposit of $3,000 into a retirement account that pays 11%…

A: Future value of the amount is the worth of the current amount in some future specified date at given…

Q: You are investing in a retirement account and plan to deposit $5,000 per year into the account for…

A: Money has time value because money can be invested elsewhere and money can be earned so money today…

Q: A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 1000000 in a…

A: Annuity(monthly instalment) is calculated by annuity from future value formula: Annuity from future…

Q: Suppose that you save for retirement by contributing the same amount each month from your 23 rd…

A: Monthly saving (pmt) = $100Rate of Return (rate) = 7.5% or 0.075Type of Compounding = MonthlyNumber…

Q: Assume you deposit $5700 at the end of each year into an account paying 11.25 percent interest.…

A: Given: Deposit = $5,700 Interest rate = 11.25% Future value= ?

Q: You will make equal deposits into your retirement account each year for 10 years starting now (i.e.,…

A: Present value at 30 is:

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: Let the required annuity be = n quarters To make the account 0 at the end of the annuity period, the…

Q: You will deposit $112 from each of your bi-weekly paychecks.  You think that you can earn an…

A: To calculate the future value , the effect of compounding statement on the rate of interest given…

Q: what will be the amount in the account upon your retirement?

A: Future value of the retirement account is the total value that an individual will be able to…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.