Question

In: Finance

16. If you deposit $1000 at the end of each of the next 10 years, how...

16. If you deposit $1000 at the end of each of the next 10 years, how much will you have in 20 years if you earn 10% APR compounded annually?A. $41,338B. $40,187C. $42,492D. $43,937E. $42,531

Show Process Please

Expert Solution

FV = Deposit * FVF(r%, n)

where r is int rate per anum and n is gap [ 20- Yr of deposit] between Deposit ( Yr of deposit) and maturity( 20 Years).

Thus OPtion A correct.

Or

COmput FV of Annuity after 10 Years:

FV of Annuity = Deposit * [ (1+r)^n - 1 ] / r

= 1000 [ ( 1 + 0.10 )^10 - 1 ] /0.10

= 1000 [ ( 1.10)^ 10 - 1 ] / 0.10

= 1000 [ (2.5937 - 1 ] / 0.10

= 1000 * 1.5937 / 0.10

= 15,937

FV of This 15937 after 10 Years [ Because 15937 is value after 10 Years and there is balance of 10 Years ]

= 15937 * (1+r)^n

= 15937 (1+0.10)^10

= 15937 (2.5937)

= 41338

jeff jeffy answered 4 months ago

If you deposit $5,000 at the end of each of the next 20 years into an...

If you deposit $5,000 at the end of each of the next 20 years into an account paying 10.8 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years? Show Work.

If you deposit $9127 at the end of each of the next 28 years into an...

If you deposit $9127 at the end of each of the next 28 years into an account paying 7.6 percent interest, how much money will you have in the account in 28 years? (Round time value factors to 6 decimal places and final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456 should be entered as 123456.)

If you deposit $5,900 at the end of each of the next 20 years into an...

If you deposit $5,900 at the end of each of the next 20 years into an account paying 10.8 percent interest, how much money will you have in the account in 20 years?

Suppose you deposit $20,000 at the end of each of the next 30 years into a...

Suppose you deposit $20,000 at the end of each of the next 30 years into a retirement account. Immediately after your last deposit, you take the entire accumulated value in your account and purchase a 20-year annuity, which will pay you X at the beginning of each year for 20 years. The price of this 20-year annuity is equal to the present value (at the time of purchase) of the 20 annual cash flows. The effective annual interest rate through...

If you deposit $4,800 at the end of each of the next 20 yearsinto an...

If you deposit $4,800 at the end of each of the next 20 years into an account paying 10.8 percent interest, how much money will you have in the account in 20 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value$ How much will you have if you make deposits for 40 years?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value$

How much must be saved at the end of each year for the next 10 years...

How much must be saved at the end of each year for the next 10 years in order to accumulate $50,000, if you can earn 9% annually? Assume you contribute the same amount to your savings every year. $3,291.00 A $3,587.87 B $4,500.33 C $4,587.79 D

1. Assume that you will deposit $4000 at the end of each of the next three...

1. Assume that you will deposit $4000 at the end of each of the next three years in a St. George bank account paying 8% interest. You currently have $7000 in the account. How much will you have in three years? In four years? 2. You are looking into an investment that will pay you $12,000 per year for the next 10 years. If you require a 15% return, what is the most you would pay for this investment? 3....

If you deposit $15,000 per year for 9 years (each deposit is made at the end...

If you deposit $15,000 per year for 9 years (each deposit is made at the end of each year) in an account that pays an annual interest rate of 9%, what will your account be worth at the end of 9 years? Please show details and related formulas, I will give thumbs up ASAP once I check the answer.

A: You deposit $100 for the next 15 years earning 10% per year. What would your balance be at the end of the 15 Years?

Please show work and formulas: A: You deposit $100 for the next 15 years earning 10% per year. What would your balance be at the end of the 15 Years? B: You borrow $100,000 for 18 years at an annual rate of 7%. What would be your fixed QUARTERLY loan payment? C: For the loan in #5 above, what percent of your first payment would apply to the principal?

Anton will deposit $1,000 into a savings account at the beginning of each month for the next 10 years.

Anton will deposit $1,000 into a savings account at the beginning of each month for the next 10 years. In return, he receives a payment of X at the end of each year forever, beginning at the end of the 11th year. Assuming an annual effective rate of discount of 5% for both accounts, determine X.