You invest $9,000 today at an annual interest rate of 5%. How much do you expect to have 5 years from now if the interest compounds each year?     $10,225.91     $11,133.33     $11,486.53     $11,979.14

Q: Using an annual effective interest rate of 7%, find X

A: To find the value of X, we need to calculate the present value of the cash flows using the given…

Q: How much must be invested today to have $1,000 in two years if the interest rate is 5%? please show…

A:

Q: How much should you invest each month in order to have $400,000 if your rate of return is 3.2%…

A: We need to use future value of the ordinary annuity formula to calculate monthly payment to get the…

Q: What is the future value of $10,000 invest today in a savings account with an interest rate of 12%…

A: An amount deposited in the account earns interest for the duration of the investment. The amount…

Q: You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal…

A: Future value = fv = $2 million Time = t = 30 years Nominal rate = 11% Inflation rate = 5.5%

Q: how much would you have to deposite if you wanted to have $49000 in five years?annual interest rate…

A: The formula to calculate present value is as below:

Q: Assuming an interest rate of 6.88% compute how much income you will have each month if you save $500…

A: A fixed amount of money paid to an individual throughout, without any end is known as an annuity.…

Q: Suppose that you need to take out a loan today and anticipate being able to pay back $50,000 sixteen…

A: Let the loan amount = X Amount to payback (A) = $50000 n = 16 years

Q: You would like to have $100,000 in 10 years’ time. How much should you save each year if the…

A: The future value = $100,000 Time period = 10 years  Interest rate = 5%

Q: How much will $100 grow to if invested at an annual interest rate of 10.50% for 7 years?

A: Here,Principal amount: $ 100Rate of interest: 10.50%Period of investment: 7 yearsAmount at the end…

Q: Rate of return-Annuity What is the rate of return on an investment of $11,733 if the investor will…

A: The rate of return on the investment is calculated in excel using IRR function

Q: What interest rate must your bank offer if you want your $2,730 invested today to grow to $3,470 in…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

Q: . Example 2 You would like to have $500,000 in your retirement account when you retire in 25 Your…

A: The future value of money is considered as the sum of money received after a period of time at a…

Q: You plan to invest $19,000 per year into a retirement account. If you earn a compound annual rate of…

A: Future value (FV) is the value of an investment or cash flow at a specific point in the future,…

Q: How much money must you invest now at 4.1% interest compounded continuously in order to have $10,000…

A: In case of continuous compound,Future value = Present value x e ^(r x t)whereFuture value = amount…

Q: How much money must you invest now at 4.1% interest compounded continuously in order to have $10,000…

A: The objective of this question is to find out the initial investment required to reach a future…

Q: You wanted to accumulate $20,000 in 5 years from now and you decided to deposit 5 deposits with same…

A: Future value (FV) = $ 20000 Number of annual deposits (n) = 5 Real rate = 4% Inflation rate = 3%…

Q: what annual interest rate must you get if you need $7000 in 4 years and have $5000 to invest now

A: Invest = $ 5000 Future value = $ 7000 Period = 4  Years

Q: You save (pay) $1,000 a month for the next 10 years. A total of 120 monthly saving (payment). The…

A: We need to use present value of annuity due formula to calculate present value today.WherePV =…

Q: 1. You invested in an insurance polict that you will pay P3500 monthly for 20 years. The company…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: How much money will you have in 8 years if you invest $13,000 at a 4.6% annual rate of interest…

A: Present value refers to the concept of time, value, and money used for calculating the current value…

Q: calculate how much you would have in a savings account 5 $1,000 today, given that the interest paid…

A: Future value is the amount that was deposited and amount of interest accumulated over the period of…

Q: godo During next 5 years, you will invest 800 TL at the end of each quarter. If the annual interest…

A: Notes:- Present Value is the amount of money that you would need to invest today in order to have…

Q: If we are investing in an account with an interest rate of 5.7% compounded monthly and we wish to…

A: The amount to be placed in the account today is computed using the present value formula.

Q: What is the future value of $1,250.63 for 3 years at an interest rate of 7%?

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

Q: You are saving for retirement. You hope to haye $1,000,000 accumulated in 35 years, making equally-…

A: It can be calculated using PMT(rate, nper, pv, [fv], [type])   Rate The interest rate for the loan.…

Q: what annual rate of return would your investment account need to generate if you make no future…

A: The annual rate of return: It is the sum of money earned over a period of 12 months period on…

Q: You currently have $10,000 in your bank account. You will invest this $10,000 and $750 every quarter…

A: For calculation of annual rate of return we need to calculate rate per quarter first. The future…

Q: Your plain to retine in 35 years and witte to have $1,000,000 inimestments How much money would you…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: How much do you need to invest today if you will also invest $2,700 at the end of every year for 39…

A: Accumulated amount (AV) = $1,000,000 Rate of return (r) = 0.065 Annual deposit (D) = $2,700 Period…

Q: Time value. You can deposit $12,000 into an account paying 6% annual interest either today or…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: you want to have $15,000 at the end of 5 years. if you can earn a return of 3.2% annually, how much…

A: given, fv= $15000 r=3.2% n=5 years

Q: Hoe much money must you invest today in order to withdraw P1000 per month for 10 years if the…

A: Monthly withdrawal (C) = P1,000 Monthly interest rate (r) = 0.01 (i.e. 0.12 / 12) Number of…

Q: How much must I start investing now, per month, to have $1M in 25 years? The bank pays an APR of…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: What is the future value of an investment

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: You have $900 to invest today. In how year will be double if you invest it an interest rate if 11%…

A: Given: Principal = 900 Amount =1800 Interest rate = 11% Compounded quarterly Time = ???

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.