You would like to have $50,000 in 12 years. To accumulate this amount, you plan to...

You would like to have $50,000 in 12 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 10 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? (Assume you can earn 10 percent on this deposit.) c. At the end of five years, you will receive $15,000 and deposit this in the bank toward your goal of $50,000 at the end of year 12. In addition to the lump-sum deposit, how much must you deposit in equal annual amounts, beginning in year 1 to reach your goal? (Again, assume you can earn 10 percent on your deposits.)

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with financial formula, let me know, will do that also. Thank you.

jeff jeffy answered 1 hour ago

Next > < Previous

Related Solutions

You would like to have $50,000 in 15 years. To accumulate this amount, you plan to...

You would like to have $50,000 in 15 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 7% interest compounded annually. Your first payment will be made at the end of the year. How much must you deposit annually to accumulate this amount? (b) If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? (Assume you can...

You would like to have $75,000 in 15 years. To accumulate this amount, you plan to...

You would like to have $75,000 in 15 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 8 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be? ...

You would like to have $48,000 in 16 years. To accumulate this amount you plan to...

You would like to have $48,000 in 16 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 7 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? (Assume...

You would like to have $100,000 in 15 years. To accumulate this amount, you plan on...

You would like to have $100,000 in 15 years. To accumulate this amount, you plan on depositing each year an equal sum into your IRA, which is expected to earn a 7% rate of return compounded annually. Your first deposit will be made immediately and you will make a total of 15 equal annual deposits. In addition to the 15 equal deposits, you will make a one-time $20,000 deposit into your IRA at the end of 5 years. How much...

You would like to have $70,000 in 14 years. To accumulate this amount, you plan to...

You would like to have $70,000 in 14 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 7 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be? ...

) You would like to have $33 comma 00033,000 in 1515 years. To accumulate this amount...

) You would like to have $33 comma 00033,000 in 1515 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 99 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum...

You plan to retire in 34 years and would like to have saved $1,000,000 in your...

You plan to retire in 34 years and would like to have saved $1,000,000 in your tax-deferred retirement account. Currently, your balance in your account is zero. As a first pass analysis, assume that you make an annual contribution at the end of each year, starting with the current year. Also, assume that the dollar amount of each contribution is the same. Your investment options are such that you forecast a rate of return of 8% per year over the...

If you would like to accumulate 7,500 over the next 5 years, how much must you...

If you would like to accumulate 7,500 over the next 5 years, how much must you deposit each six months, starting from now given a 6 percent rate and semi-annually compunding? A. How much must you deposit each six months?

You are trying to plan for retirement in 20 years and currently you have $50,000 in...

You are trying to plan for retirement in 20 years and currently you have $50,000 in a savings account and $80,000 in stocks. In addition, you plan to add to your savings by depositing $10,000 per year in your savings account at the end of each of the next 20 years, until retirement. Assume that your savings account returns 5% compounded annually and your investment in stocks will return 10% compounded annually, how much do you have at the end...

You would like to buy a house that costs $ 350,000. You have $ 50,000 in...

You would like to buy a house that costs $ 350,000. You have $ 50,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering you a 30-year mortgage that requires annual payments and has an interest rate of 7 % per year. You can afford to pay only $ 23,500 per year. The bank agrees to allow you to pay this amount each year,...

Subjects

Question

You would like to have ​$50,000 in 12 years. To accumulate this​ amount, you plan to...

Solutions

Expert Solution

Related Solutions

You would like to have $50,000 in 12 years. To accumulate this amount, you plan to...