You want to be able to withdraw $30,000 each year for 15 years. Your account earns 6% interest. How much do you need in your account at the beginning?

Q: How much would you need to deposit in an account each month in order to have $20,000 in the account…

A: The amount you need to deposit in an account each month in order to have $20,000 in the account in 7…

Q: You have $2,000 on a credit card that charges a 21% interest rate. If you want to pay off the credit…

A: Monthly payment is a fixed periodic payment which is made by a borrower to the lender.

Q: You have $300,000 saved for retirement. Your account earns 6% interest. How much will you be able to…

A: The time value of money (TVM) becomes an important factor for capital budgeting decisions. It is an…

Q: You have $1,000,000 saved for retirement. Your account earns 7% interest. How much will you be able…

A:

Q: You have $4,500 on a credit card that charges a 15% interest rate. If you want to pay off the card…

A: Installment is the amount of periodic payment a borrower has to make to its lender in order to pay…

Q: suppose that you would like to save $20,000 over 5 years to use as a down payment for a house by…

A: Computation of monthly deposit:Hence, the monthly deposit into the account is $301.66 per month.

Q: How much would you need to deposit in an account each month in order to have $50,000 in the account…

A: Given: Future value = $50,000 Time =8 years Monthly period = 8*12 = 96 Interest = 4.5% So, monthly…

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: How much would you need to deposit in an account each month in order to have $10,000 in the account…

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

Q: You want to have $40,000 in your savings account 6 years from now, and you're prepared to make equal…

A: The concept of time value of money will be used here and that of annuities. The amount of $40,000 is…

Q: You want to be able to withdraw $3,000 each month for 25 years. Your account earns 9% interest. How…

A: Given Information: Monthly withdrawal = $3,000 Time period = 25 years Interest rate = 9%

Q: How much would you need to deposit in an account each month in order to have $10,000 in the account…

A: Monthly deposit refers to an amount that is deposited at every month for the purpose of earning some…

Q: You want to be able to withdraw $5800 each year for 10 years. Your account earns 3% compound…

A: An annuity is the plan that gives a fixed amount in return for a lump sum. It is usually made with…

Q: How much would you need to deposit in an account right now in order to have $2,000 in the account in…

A: Amount = $2,000 = A Time period = 10 years = T  Interest rate = 2% = R Compounded monthly where it…

Q: You have $400,000 saved for retirement. Your account earns 6% interest. How much will you be able to…

A: 400000 is the present value of annuities.  Number of periods  = 15 * 12 = 180 Rate = 0.06/12 = 0.005…

Q: How much would you need to deposit in an account each month in order to have $10,000 in the account…

A: formula to be used = Future value=PMT(1+r/n)n*t-1)/r/n   PMT= Monthly payment R= interest rate N=…

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: 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 want to be able to withdraw $1,000 from a savings account at the end of year 1, with withdrawals…

A: The present value of a growing annuity is the current value of an annuity which is growing at a…

Q: ou want to be able to withdraw $35,000 each year for 30 years. your account earns 6%  how much do…

A: An annuity is defined as the sum of recurring payments over a period of time at a certain date, at a…

Q: You deposit $500 each month into an account earning 5% interest compounded monthly. a) How much…

A: The future value is the value of amount in future that has to paid or received at current or in…

Q: You have $300,000 saved for retirement. Your account earns 5% interest.  How much will you be able…

A: A=W×p×(1-p-nr)   Here,A = amount initially in the account  W= Monthly withdrawn value  r = Nominal…

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: If you deposit $500 at the end of each year for the next 5 years in a bank where it will earn 6%…

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

Q: You deposit $1,000 today and want to save $100 each month beginning one month from today. Your…

A: We have to find the number of periods it will take to reach a target accumulated value, starting…

Q: How much would you need to deposit in an account now in order to have $20,000 in the account in 4…

A: Interest rate = 5%No. of years = 4FV = 20000

Q: How much will you be able to pull out each month, if you want to be able to take withdrawals for 15…

A: Present value annuity means to calculate the future value of the cash flows, to determine the value…

Q: account with an interest rate of 7.5% per year compounded monthly. You want to withdraw all your…

A: interest rate =7.5% monthly interest =7.5/12=0.625 Future value =Present value (1+i)n

Q: You deposit $58000 into an account which pays 6% compounded annually. How much can you withdraw at…

A: Perpetual annual withdrawal refers to the amount of repayment for n number of years forever. This…

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: You have $400,000 saved for retirement. Your account earns 6% interest. How much will you be able to…

A: Monthly interest rate = Annual rate/Frequency of compounding in a year = 0.06/12 = 0.005 Number of…

Q: You deposit $5000 each year into an account earning 6.8% interest. How much will you have in the…

A: Given: Yearly deposit = $5000 Interest = 6.8% annually Time =15 years

Q: I want to be able to withdraw $4,200 each month for 30 years. My account earns 7% interest. How much…

A: Present value of annuity formula will be used to calculate the amount required at beginning to…

Q: You deposit $27,000.00 in an account that pays 4% compounded annually and immediately start making…

A: Given:

Q: How much would you need to deposit in an account each month in order to have $10,000 in the account…

A: FV is the future value (in this case, $10,000),P is the monthly deposit,r is the monthly interest…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 5% interest

A: The amount of annual withdrawal of $50,000 each year is an annuity.   We will have to determine the…

Q: You have $500,000 saved for retirement. Your account earns 5% interest. How much will you be able to…

A: Solution:- An equal amount is saved each period at end of period is known as ordinary annuity.…