Your friend plans to invest $1,000 per month into an account expected to have an effective annual rate (EAR) of 6.2%.  If the first investment is made one month from today, how long (in years) will it take your friend to reach the goal of $100,000?

Q: You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of…

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

Q: You are scheduled to receive $19,000 in two years. When you receive it, you will invest it for six…

A: Present value means today's value of the future value of money. It means that the present time…

Q: You expect to receive $26,000 at graduation in two years. You plan on investing it at 9.25 percent…

A: Present Value = $26,000  Future Value = $161,000  Rate (r) = 9.25%

Q: You expect to receive $15,000 at graduation in three years. You plan on investing it at 13% until…

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

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: Your investment advisor wants you to purchase an annuity that will pay you $35,000 per year for 10…

A: An annuity is a series of equal payments. It is a financial instrument that guarantees an income for…

Q: If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first…

A: Initial cost (I) = $15000 CF1 = $1100 forever starting after 2 years CF2 = $500 forever every 6…

Q: You are scheduled to receive Rs. 360,000 in two years. When you receive it, you will invest it for…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: An investment offers to pay you $8,000 a year for five years. If it costs $28,840, what will be your…

A: YEARS 5 PMT (MONTHLY DEPOSIT) 8000 PRESENT VALUE $28,840 FUTURE VALUE $0

Q: You have an investment opportunity that promises to pay you $18, 499 in four years. Suppose the…

A: Investment is the key allotment of monetary assets with the purpose of creating wages or…

Q: You expect to receive $10,000 in two years. You plan on investing it at 9 percent until you have…

A: Amount invested = a = $10,000 Interest rate = r = 9% Future value = $75,000 Time before investment =…

Q: An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be…

A: given present value    = 27980 future value a year…

Q: Write the present value function, letting x represent the number of years.

A: Time value of money: The time value of money is the idea that the value of money received today will…

Q: An investor is considering an investment that will pay $2,280 at the end of each year for the next…

A: Payment = p = $2280Time = t = 10Rate of Return = r = 12%

Q: If you want to receive $1,000 each year for the next three years how much should you invest today?…

A: The objective of the question is to find out the present value of an annuity. An annuity is a series…

Q: you expect to receive 10,000 at graduation in two years. you plan on investing it at 11% until you…

A: Future amount can be calculated as follows:= Present Value * (1 + rate)^ periods

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,050 per year - with the…

A: The objective of this question is to find out how many years it will take to accumulate $10,000 by…

Q: etna is offering customers who invest $10,000 with them today a payment of $1,500 every 1.5 years in…

A: Concept, first we will calculate the effective rate for the 1.5 year period which is nothing buy the…

Q: Your goal is to save up $30,000 to use as a future down payment. If you save $4,596 every year in an…

A: Here,RequiredAmount (FV) is $30,000Yearly Savings (PMT) is $4,596Interest Rate (Rate) is 3%

Q: An investor is considering an investment that will pay $2,270 at the end of each year for the next…

A: Payment = p = $2270 Time = t = 10 years Interest rate = r = 12%

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,300 per year with the…

A: The FV of an investment refers to the combined value of the cash flows of the investment after they…

Q: 22) An investment pays you $5,000 at the end of each of the next five years. Your plan is to invest…

A: The amount after 5 years can be computed using the future value formula.

Q: You want to have $10,000 in 6 years for a dream vacation. If you can earn an interest rate of .5…

A: Step 1 The original amount, the amount invested, the amount lent, the amount borrowed, etc. are all…

Q: You will receive $5,000 in six years.  When you receive it, you will invest it for 7 more years at…

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

Q: You are told that if you invest $11,600 per year for 18 years (all payments made at the beginning of…

A: Annual rate of return refers to the percentage of earnings or interest earned on the investment made…

Q: You plan on saving $15,200 this year, nothing next year, and $17,500 the three years after that. You…

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

Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…

A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…

Q: You are scheduled to receive $27,000 in two years. When you receive it, you will invest it for 7…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: You expect to receive a payout from a trust fund in 3 years. The payout will be for $11,000. You…

A: Receipt in 3 years (I) = $11,000 Interest rate (r) = 0.065 Future value (FV) = $19,000 Period for…

Q: If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and…

A: Calculate the net present value as follows:

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,350 per year with the…

A: Future value is an estimate of future cash values ​​that may be received at a future date,…

Q: You need $25,356 at the end of 9 years, and your only investment outlet is an 9 percent long-term…

A: Present value is an estimate of current value of future cash flows for a specific period of time at…

Q: An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each of…

A: The amount to be paid for the investment is calculated as the present value of annuity plus the…

Q: You expect to receive $12,000 at graduation in two years. You plan on investing it at 10 percent…

A: Compound interest is a financial concept where your initial investment (or principal) earns…

Q: You are considering an investment that will pay you $1,200 per month for three years. The first…

A: An annuity is a series of equal payments occurring at regular intervals. The present value is…

Q: You lend a friend $35, 000, which your friend will repay in 12 equal annual end - of - year payments…

A:

Q: tment will give you monthly payments of $1972.19 for 8 years. You will receive your first payment…

A: Present value is the equivalent value today of the future money that is going to be received in the…

Q: Consider two investments: Invest $1,000 and receive $110 at the end of each month for the next 10…

A: The future worth of both the options can be calculated as follows : Results obtained :

Q: Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…