You want to save for a down payment on a new home in the future. You can invest $225 at the end of each month, and you expect to earn 6% APR compounded monthly on your investment. How much will you be able to have saved in 5 years? Your Answer:
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A: The formula used as follows: Future value of annuity=Payment×1+rn-1r
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A: Future Value|(FV) is worth of current payment at future date. It is computed by compounding that…
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A: as the annual savings are increasing, we can use the following formula for Future value of growing…
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A: Future value of growing annuity The future value of a growing annuity is the value of money received…
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A: Future value of annuity includes the amount being deposited and the interest accumulated over the…
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A: Car Cost = Future Value Required = 40,000 N = 60 months Monthly Interest Rate = 0.25% Monthly…
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A: in this problem we have to calculate quarterly interest rate and from that we can get present value.
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A: According to time value of money, FV=PV×1+RMM×N Where, PV = present value R = rate of interest M=…
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Q: You put $200 per month in an investment plan that pays an APR of 4.5%. How much money will you have…
A: Monthly deposit (D) = $200 Monthly APR (r) = 0.00375 (i.e. 0.045 / 12) Monthly period (p) = 336…
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A: Present value: It can be defined as today’s worth of an investment that will be received in the…
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A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…
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A: The question is based on the concept of calculating the future value of a periodic deposit with a…
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A: Annuity refers to series of annual payment which are paid or received at start or end of specific…
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A: The question gives the following information:
Q: much will you be able to withdraw weekly
A: Weekly withdrawal refers to the amount that is cashed in at regular intervals until the deposited…
Q: You want to buy a house within 3 years, and you are currentlysaving for the down payment. You plan…
A: The future value is the amount that will be received at the end of a certain period. In simple…
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A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…
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A: FUTURE VALUE OF ANNUITY (FVA) FORMULA: FVA=A×1+rn-1r where, r=rate of interest n = number of years…
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A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…
Q: You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need…
A: Present value is the current value of future cash flows at a given discount rate. It is given as: PV…
Q: At age 20 when you graduate, you start saving for retirement. If your investment plan pays an APR of…
A: Annuity refers to the payment series of same nominal value which are paid or received at a same…
Q: Say, you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making…
A: Car cost = Future Value Required = 40,000 Time Period = 60 months Monthly Deposit = ? First Month…
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A: The Equal Montly installment is calculated with the help of following formula EMI = P × r(1 + r)n…
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A: In this question we require to compute the money to be invested each year to have $1 million in 20…
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A: RATE (10%/12) 0.833% TIME PERIOD (30 years * 12 months) 360 PRESENT VALUE $0 FUTURE VALUE…
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A: The calculation of the future value of the annuity with a 15% annual growth rate is as follows:
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A: The Equal Montly installment is calculated with the help of following formula EMI = P × r(1 + r)n…
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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: How much will you need to save per month to have $200,000 after 12 years, if you account earns 5%…
A: Compound interest = P"(1+r%/n)^tn Since the final amount is given , we need to calculate the…
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A: GIVEN, PV = $125000 R=5.5% M=12 A= $1400 Beginning of month withdrawals
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A: Given: Particulars Amount Down payment(FV) $10,000 Years 4 Interest rate 7.50%
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A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: At the moment you don't have any money saved for retirement, but have resolved to start making $425…
A: Given: Monthly payments "PMT" = $425 Effective annual rate = 9.9% Future value "FV" = $2400000
Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…
A: Future value is the value of present cashflow at future date compounded at the specified rate.…
Q: You invest $150 each month in a savings plan for a period of 30 years. If you earn an interest rate…
A: The future value is the amount that will be received at the end of a certain period. In simple…
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A: Given months = 30 cost = 16716 APR = 2.91%
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A: Given, Amount borrowed = $30,000 Interest rate = 14% Monthly installment = $750 Monthly interest =…
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A: Formula: Monthly payment = ( Present value of loan ) / [ ( 1 - ( 1 + r )-NT ) / r / n ] R =…
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- 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?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?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
- Suppose you want to save up for a down payment on a house in 5 years. You plan to save $1,000 per month in a savings account. The savings account offers an annual interest rate of 6%. a) If the payments are made at the end of each month, how much money will you have at the end of 5 years? b) If the payments are made at the beginning of each month, how much money will you have at the end of 5 years?When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be earning 6% per year. Find PV Annuity: If you wish to do that for 10 years starting one year after you retire, what does the balance in your retirement account have to be when you retire? Find PV Annuity: If the account will be earning 3% per year, and you wish to do that for 20 years starting on the day you retire, what does the balance in your retirement account have to be when you retire?You are trying to decide how much to save for retirement. Assume you plan to save $4,500 per year with the first investment made one year from now. You think you can earn 6.0% per year on your investments and you plan to retire in 45 years, immediately after making your last $4,500 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 16 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 16th withdrawal (assume your savings will continue to earn 6.0% in retirement)? d. If, instead, you decide to withdraw $191,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…
- suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal?You are contributing money to an investment account so that you can purchase a house in six (6) years. You plan to contribute seven payments of $2,000 a year--the first payment will be made today (t = 0), and the final payment will be made six years from now (t = 6). If you earn 11 percent in your investment account, how much money will you have in the account six years from now (at t = 6)? Select one: a. $20,856 b. $15,350 c. $19,567 d. $17,412 e. $11,683After graduation from university, you start working and you want to plan for your retirement. You will be retiring in 25 years and during your retirement, you plan to spend USD 20,000 per year. You expect your retirement to last 30 years. You believe you can earn 8% on your retirement savings. If you make annual payments into a retirement plan during your working life, how much will you need to save each year to reach your retirement goal? (You will make the first payment at the end of the year).
- Assume that you plan to buy a condo 5 years from now and you need to save for a down payment. You plan to save 2, 500 per year (with the first deposit made immediately), and you will deposit the funds in a bank account that pays 4% interest. How much will you have after 5 years? How much will you have if you make the deposits at the end of each year?You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year with the first investment made one year from now. You think you can earn 10.0% per year on your investments and you plan to retire in 43 years, immediately after making your last $5,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 20th withdrawal (assume your savings will continue to earn 10.0% in retirement)? d. If, instead, you decide to withdraw $300,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…You want to be able to withdraw $40,000 from your account each year for 25 years after you retire. If you expect to retire in 15 years and your account earns 6.6% interest while saving for retirement and 6.2% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire?$b) How much will you need to deposit each month until retirement to achieve your retirement goals?$c) How much did you deposit into you retirement account?$d) How much did you receive in payments during retirement?$e) How much of the money you received was interest?$
