Question
In: Finance
- If you wish to accumulate $240,000 in 13 years, how much must you deposit today...
- If you wish to accumulate $240,000 in 13 years, how much must you deposit today in an account that pays an annual interest rate of 10%? Round to the nearest $0.01.
- What will $117,000 grow to be in 18 years if it is invested in an account with an annual interest rate of 7.75%? Round to the nearest $0.01.
Solutions
Expert Solution
Ans 1) $ 69519.45
| FV = | Future Value |
| PV = | Present Value |
| r = | rate of interest |
| n= | no of period |
| PV = | FV/ (1 + r )^n |
| PV = | 240000 / ((1 + 10%)^13) |
| PV = | 69519.45 |
Ans 2) $ 448432.29
| FV = | Future Value |
| PV = | Present Value |
| r = | rate of interest |
| n= | no of period |
| FV = | PV (1 + r )^n |
| FV = | 117000*(1+7.75%)^18 |
| FV = | 448432.29 |
jeff jeffy answered 2 years agoRelated Solutions
If you deposit today $9,719 in an account for 6 years and at the end accumulate...
If you deposit today $9,719 in an account for 6 years and at the
end accumulate $10,221, how much compound interest rate (rate of
return) you earned on this investment?
You will deposit 18,057 at 10% simple interest rate for 6 years,
and then move the amount you would receive to an investment account
at 10 % compound rate for another 3 years. How much money would you
have at the end of the entire period?
If you deposit today...
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?
If you want to have $18,000 in four years, how much do you have to deposit today if
If you want to have $18,000 in four years, how much do you have to deposit today if your investment earns a rate of 3 percent per annum?
You are 30 years old today. You wish to retire at age 65. How much money...
You are 30 years old today. You wish to retire at age 65. How
much money must you deposit at the end of each year so that when
you retire at age 65, you will be able to withdraw $2,500 at the
end of each month until age 85?
Assume you can earn interest at the rate of 5.5% compounded
daily during the entire period from age 30 to 85.
You are 30 years old today. You wish to retire at age 65. How much money...
You are 30 years old today. You wish to retire at age 65. How
much money must you deposit at the end of each year so that when
you retire at age 65, you will be able to withdraw $2,500 at the
end of each month until age 85?
Assume you can earn interest at the rate of 5.5% compounded
daily during the entire period from age 30 to 85.
I do not understand at all, so if you could...
How much do you have to deposit today so that beginning 11 years from now you...
How much do you have to deposit today so that beginning 11 years
from now you can withdraw $12,000 a year for the next 8 years
(periods 11 through 18) plus an additional amount of $24,000 in
the last year (period 18)? Assume an interest rate of 11
percent.
How much do you have to deposit today so that, beginning 11 years from now, you...
How much do you have to deposit today so that, beginning 11
years from now, you can withdraw $9,000 a year for the next 8 years
(periods 11 through 18) plus an additional amount of $18,000 in the
last year (period 18)? Assume an interest rate of 6%.
How much do you have to deposit today so that beginning 11 years from now you...
How much do you have to deposit today so that beginning 11 years
from now you can withdraw ?$9,000 a year for the next 5 years?
(periods 11 through 15?) plus an additional amount of $18,000 in
the last year? (period 15?)? Assume an interest rate of 9
percent.
a. How much would you have to deposit today if you wanted to have $51,000 in...
a. How much would you have to deposit today if you wanted to
have $51,000 in three years? The annual interest rate is 10%. (PV
of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate
factor(s) from the tables provided. Round your answer to the
nearest whole dollar.) b. Assume that you are saving up for a trip
around the world when you graduate in two years. If you can earn 6%
on your investments, how...
If you deposit money today in an account that pays 13% annual interest, how long will...
If you deposit money today in an account that pays 13% annual
interest, how long will it take to double your money? Round your
answer to two decimal places.
3 and a half years would be entered as 3.50 years
If you made yearly payments of $5344 at the end of each year
into an investment, how long would it take you to save up
$1,000,000 if you earned a rate of 8%. Enter your answer in whole
years. (ex....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Suppose that 20 monthly payments of $100 each are followed by 30 monthly payments of $200...
- D. Explain what it means for recommendations to be specific and actionable. E. Discuss how charts...
- Capital Toys’ management is considering eliminating product A, which has been showing a loss for several...
- Computer Networks IT 210 Please Use your own words . sorry No handwriting no copy paste...
- The Coronavirus will obviously impact the economy of big organizations like FIFA or the NBA but...
- Question: what is the difference between rights of assertion and observation assertion. Include which financial statements...
- how to read a csv file in php and make a html table? I can't use...
ADVERTISEMENT