Your grandparents just gave you a gift of $3,000. You are investing this money for 10 years at 3 percent simple interest. How much money will you have at the end of the 6 years? MUST SHOW FULL WORK (NO EXCELL) a. $3,270 b. $3,900 c. $4,032 d. $3.090 e. $3,540

Q: You want to endow a scholarship that will pay $ 8 comma 000$8,000 per year​ forever, starting one…

A: We are given the following data -Annual payment (C) = $8000Discount rate (r) = 4% or 0.04(i) Amount…

Q: Suppose Mr. Mitchell wants to set aside $3,000 at the end of each year for the next 18 years to…

A: FUTURE VALUE OF ANNUITY  Future Value of Annuity is the value of a group of regular payments at any…

Q: Your parents are planning to retire in 20 years. They currently have $1,000,000 and they would like…

A: Time = t = 20Present value = pv = $1,000,000Future Value = fv = $5,000,000

Q: How much money should I expect to receive in 10 years if I invest $585 every year for 10 years at…

A: Accumulated value of an annuity needs to be determined. This is time value of money (TVM) concept…

Q: A man is investing $3,000 at 8 1/4% simple interest to save for a new car. In how many years will he…

A: SIMPLE INTEREST FORMULA: A=P×1+RT WHERE, P=principal A=amount R=rate  T=time

Q: which alternative is the best choice?

A: Time value of money(TVM) means that the amount of money received in the present period will have…

Q: You have just inherited $560,000. You plan to save this money and continue to live off the money…

A: Present Value = pv = $560,000Interest Rate = r = 5.46%Future Value = fv = $1 million

Q: ques 2

A: The initial investment of $100,000 will have an investment period of 5+20 = 25 years.Hence future…

Q: You just inherited some money, and a broker offers to sell you an annuity that pays $19,245 at the…

A: Present value (PV) could be a budgetary concept utilized to decide the current worth of future cash…

Q: Your father invested $50,000 for your education in the year 2000 in ABC bank. The bank paid 8.00%…

A: The future value formula is used when the future value of the current amount needs to be determined.…

Q: help with this requirement Scenarios\\n $8,550 per year at the end of each of the next six…

A: The money and resources that a person or family receives during their retirement years are referred…

Q: Your grandmother gave you money to start saving for retirement. You have $7.500 to begin investing…

A: The time value of money is a financial concept that recognizes the idea that the value of money…

Q: (Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated…

A: PMT is a series of cash flows (annuity) and can be paid/received at the end of each period, called…

Q: . Your grandmother has established a trust fund that pays you $3,500 each year for 15 years. upon…

A: Given: CF=$3500t=15 yearsr=7% i.e 0.07

Q: If I want to invest my money, how long (in years) will it take $6774 to earn $1205 interest (simple)…

A: Interest is (I) is $1,205. The principal (P) is $6,774. The interest rate (R) is 7%.

Q: 14. Your grandfather left you $40,000 when he died. You can invest the money to earn 9% per year. •…

A: An annuity is a financial product that provides a series of regular payments to an individual over a…

Q: 9) Steve plans to purchase a house and needs to save $75,000 for a down payment over the next 5…

A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

Q: Todd Spodek will invest $5,000 at the beginning of each year for the next 9 years. The interest rate…

A: A contract between you and another person known as an annuity obligates the other person to pay you…

Q: None

A: To determine how much needs to be invested today to provide for the college education fund,…

Q: Your rich uncle has offered you two living trust payouts for the rest of yourlife. The positive cash…

A: The present value of an annuity is the current worth of the series of future cash flow at a certain…

Q: Bradley Snap has deposited $7 000 in a guaranteed investment account with a promised rate of 6%…

A: concept. Future value = A ( 1+r )n where , A= amount deposited r= interest rate n= time period.

Q: Your sister paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of…

A: The expected return is the estimation of profit or loss that an investor determines from his…

Q: Your father paid $10,000 (CF at t = o) for an investment that promises to pay $575 at the end of…

A: Expected Return is that percentage of earnings which is earned by the investor from the project. It…

Q: K (Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated…

A:

Q: When you graduate from college, your mother plans to give you a gift of $40,000 to start you on your…

A: Present value of lum sum = Amount receivable in future * PV $1 (r, n) Present value of annual…

Q: On a whim you purchased a scratch−off lottery ticket at the gas station. It must have been your…

A: Future value is the worth of current or present amount in some future date at given interest rate.

Q: Your girlfriend just won the Florida lottery. She has the choice of $10,700,000 today or a 20-year…

A: Option 1 i.e. Present Value = 10,700,000 Time Period (N) = 20 years Annuity Amount = 1,050,000 End…

Q: Your father paid $10,000 (CF at t= 0) for an investment that promises to pay $750 at the end of each…

A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…

Q: please explain your answer....

A: The objective of this question is to find out how much John needs to invest now in order to have…

Q: Chris invests $19,000 at 4% simple interest for 7 year. How much is in the account at the end of the…

A: Investment is the practice of exchanging current revenue for an asset that is expected to provide…

Q: In 3 years, Muhammad wants to have a balance of $10,000 in his savings to take a trip. What monthly…

A: Compound = monthly = 12 Time = 3 * 12 = 36 months Future value = fv = $10,000 Interest rate = r =…

Q: Your older sister deposited $100,000 today at 12.5 percent interest for 10 years. You would like to…

A: Solution: An amount deposited somewhere, earns interest on it. The amount deposited in the beginning…

Q: Carol wants to Invest money in a 6% CD that compounds semiannualy Caral would like the account to…

A: We need to use Future value table to solve this problem. PV =FV/FV factor Where PV =present value…

Q: You would like to give your daughter $75,000 towards her college education 16 years from now. How…

A: The amount to be set aside today is calculated as the present value using following equation Present…

Q: You just received an inheritance of $123,456. How long would you need to leave it in an RRSP earning…

A: Here, Inheritance Amount is $123,456 Monthly Payment for 20 years is $800 Interest Rate is 2.5%…

Q: Someone in the 36 percent tax bracket can earn 8 percent annually on her investments in a tax-exempt…

A: Here,One Time Invetsment is $13,000Tax Rate is 36%Interest Rate is 8%

Q: You are scheduled to receive $45,000 in two years. When you receive it, you will invest it for 5…

A: Amount Received = $45,000Investment Period (n) = 5 yearsInterest Rate (r) = 5% or 0.05

Q: Investor A needs $1,000 in 4 years.  Investor B needs $1,000 in 5 years. Who needs to deposit more…

A: Time value of money concept says that a dollar amount invested today will have more value in future,…