Question
In: Finance
You are planning to make monthly deposits of $170 into a retirement account that pays 8...
|
You are planning to make monthly deposits of $170 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 21 years? |
Solutions
Expert Solution
Future Value of Annuity= Annuity * [{(1+rate)^time period}-1]/rate
= $ 170 * [{(1+8%/12)^(21*12}-1]/(8%/12)
= $ 170*650.3587456
= $ 110,560.99
Answer = $ 110,560.99
jeff jeffy answered 2 years agoRelated Solutions
You are planning to make monthly deposits of $120 into a retirement account that pays 9...
You are planning to make monthly deposits of $120 into a
retirement account that pays 9 percent annual interest (APR),
compounded monthly. If your first deposit will be made one month
from now, how large will your retirement account be in 19
years?
rev: 09_17_2012
Multiple Choice
$71,900.73
$75,495.77
$66,266.58
$68,305.69
$862,808.76
You are planning to make monthly deposits of $70 into a retirement account that pays 14...
You are planning to make monthly deposits of $70 into a
retirement account that pays 14 percent interest compounded
monthly. If your first deposit will be made one month from now, how
large will your retirement account be in 22 years?
$128,355.75, $1,466,922.82, $116,131.39, $122,243.57,
$101,166.24
1-Calculating Annuity Future Values. You are planning to make monthly deposits of $475 into a retirement...
1-Calculating Annuity Future Values. You are
planning to make monthly deposits of $475 into a retirement account
that pays 10 percent interest compounded monthly. If your first
deposit will be made one month from now, how large will your
retirement account be in 30 years?
2-Calculating Annuity Future Values. In the
previous problem, suppose you make $5,700 annual deposits into the
same retirement account. How large will your account balance be in
30 years?
Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded...
Suppose an investor plans to make monthly deposits into an
account that pays 9% interest, compounded monthly, so that $100,000
will be in the account immediately after the payment at the end of
Year 10. The first payment will occur at the end of Month 1 (one
month from the present). How much must be deposited monthly?
A.
$517 per month
B.
$9,670 per month
C.
$6,580 per month
D.
$9,67 per month
You can afford monthly deposits of $130 into an account that pays 3.0% compounded monthly. How...
You can afford monthly deposits of $130 into an account that
pays 3.0% compounded monthly. How long (in months) will it be until
you have $11,400 to buy a boat?
You plan to make monthly deposits of $1,000 into an account at the beginning of each...
You plan to make monthly deposits of $1,000
into an account at the beginning of each month for
the next 12 years. If you can earn 3.0% interest, what will your
final balance be by the end of 12 years? Round to the nearest cent.
[Hint: Beginning of period monthly cash flows!]
You plan to make monthly deposits of $1,000 into an account at the beginning of each...
You plan to make monthly deposits of $1,000 into an account at
the beginning of each month for the next 11 years. If you can earn
3.4% interest, what will your final balance be by the end of 11
years? Round to the nearest cent. [Hint: Beginning of period
monthly cash flows!]
Laquita deposits $5500 in her retirement account every year. If her account pays an average 6%...
Laquita deposits $5500 in her retirement account every year. If
her account pays an average 6% interest and she makes 38 deposits
before she retires, how much monet can she withdraw in 20 equal
payments beginning one year after her last deposit? please show
cash flow diagram and solve NOT with excel but with the interest
rate formula equations!!!
You make deposits of $400 at the beginning of every month, into an account paying 8%...
You make deposits of $400 at the beginning of
every month, into an account paying 8% interest compounded monthly.
The value at the end of 15 years is:
a.136,338
b.137,338
c.138,338
d.139,338
Ken planned to make monthly deposits in to a saving account at a nominal rate of...
Ken planned to make monthly deposits in to a saving account at a
nominal rate of 3% compounded monthly for 180 months. The amount of
deposit is k at the end of the k th month, where k = 1, 2, ...,
180. However, he was unemployed for a short period of time, so he
missed the 1st through 9th payments. He made the rest of the
payments as planned. How much does Ken have in his saving account
at...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
ADVERTISEMENT