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: Your high school classmate is offering you an investment opportunity which requires you to make…

A: Your classmate's investment offers an opportunity to build a significant sum over time. Here's why:…

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: Suppose that you want to save $14000 over the next 6 years and you know that your savings will earn…

A: Present Value: It represents the current value of the future expected cash flows discounted over a…

Q: You plan to save $250 a month for the next 24 years and hope to earn an average rate of return of…

A: Future value is the sum of money invested over a period of time under the premise that the…

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: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

Q: t be until this occurs?

A: To calculate the years will it be to recieve $ 60,000 from $9,000 at 10% , the formual to be applied…

Q: You have $27, 467.55 in a brokerage account, and you plan to deposit an additional $5, 000 at the…

A: The amount in the brokerage account (PV) at present is $27,467.55.The annual deposit (PMT) is…

Q: A loan of $50,000 is due 10 years from today. The borrower wants to make monthly payments at the end…

A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: Suppose you inherit a perpetuity that pays $4,000 each year. Assuming the first payment will occur…

A: The given rate is APR rate i.e. annual percentage rate. The APR is with daily compounding. The EAR…

Q: You have $3000 today, and you expect to receive $1000 at the end of the next three years,…

A: Present Value = pv = $3000Payment = p = $1000Time = t = 3Interest Rate = r = 8%

Q: You have $67,046.95 in a brokerage account, and you plan to deposit an additional $3,000 at the end…

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

Q: You deposit $10,000 into a savings account today and leave the money in the account for the next 12…

A: Future value is the value of an annuity at a future date being compounded for a period of time at an…

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: Determine the size of your investment account 30years from now (when you plan to retire) if you…

A: Future value of annuity , FV= P * ( (1+r)^t -1) /rwhere P =$12,000r=0.10t=30 yearsFV =?

Q: You are a financial adviser. Your client is thinking of investing $800.00 at the end of every six…

A: This is the question of future value of annuity. Future value of annuity is the stream of recurring…

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: 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: Susan plans to make an investment today which promises to return to her $3,000 each year for ten…

A: Using excel PV function

Q: You decide to invest $14.4k today into a security that will make fixed annual payments to you of…

A: The money's present value is its current worth compared to some of its potential future value after…

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: The pipe guy plans to deposit $78,000 into an investment each year for the next 10 years so he can…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…

A: Time value of money is a concept that deals with calculating the actual worth of money at present…

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: Chris offers you an investmet where if ou investment where if you invest $1,000 today, he'll return…

A: The annual rate of return refers to the yield earned on an investment over the course of one year.…

Q: The monthly rent for the first house is $1, 190, and the Bainters can expect it to increase 1.7%…

A:

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Present value is the current value of a future amount that is to be received or paid out.     Future…

Q: You have $51, 854.38 in a brokerage account, and you plan to deposit an additional $3,000 at the end…

A: The time value of money is a concept in finance that takes into account the effects of compounding…

Q: Ian deposits $1200 into a savings account that earns 4% per year, simple interest. a) Write an…

A: A savings account is an account for which we get interest for our deposit in the bank. This is the…

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: In planning for your retirement, you would like to withdraw $40,000 per year for 18 years. The first…

A: Retirement planning should be done based on future requirement and should be done based on time…

Q: You expect to receive $3,100 upon your graduation and will invest your windfall at an interest rate…

A: Here, Particulars Values Present value of money (PV)  $ 3,100.00 Quarterly interest rate…

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: Use the savings plan formula to answer the following question.   You put ​$300 per month in an…

A: Monthly investment = $300Interest rate = 2.5%Period = 17 years

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: What would your investment account be worth in 23 years if you currently have $7,000 saved and plan…

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

Q: You are going to receive a payment at the end of each year for the next 12 years. If you invest each…

A: The future Value of an investment is an estimation of receiving some amount after some period of…

Q: Starting next month, I plan to invest $500 per month for 10 years to reach my goal of $100,000.…

A: The rate of interest is used in the calculation of the interest amount on the principal value. The…

Q: an to invest $1,000 at the end of EVERY year for the next 25 years. You believe you can earn 7%…

A: Money has time value and value of money changes with time and interest and inflation. The purchasing…

Q: Thomas Taylor plans to invest $24,300 a year at the end of each year for the next seven years in an…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

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…