Question

In: Finance

If you invest $8,717.24 at the end of every month for the next 8 years, what...

If you invest $8,717.24 at the end of every month for the next 8 years, what will be you account balance immediately after the last payment is deposited? The interest rate you will earn on the account is 15.75%

Solutions

Expert Solution

Future Value of an Ordinary Annuity
= C*[(1+i)^n-1]/i
Where,
C= Cash Flow per period
i = interest rate per period =15.75%/12 =1.3125%
n=number of period =12*8 =96
= $8717.24[ (1+0.013125)^96 -1] /0.013125
= $8717.24[ (1.013125)^96 -1] /0.013125
= $8717.24[ (3.4966 -1] /0.013125]
= $16,58,195.96

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

If you invest $200 at the end of each month for five years and you earn...
If you invest $200 at the end of each month for five years and you earn 9% interest compounded monthly, how much will you have accumulated at the end of the fifth year?
You receive $500 today and every month for the next 20 years. You will receive this...
You receive $500 today and every month for the next 20 years. You will receive this payment at the beginning of the month. Assume you can earn 5% on this annuity. How much is it worth?
An investment will pay you $450 every month for the next 18 years and $4,500 at...
An investment will pay you $450 every month for the next 18 years and $4,500 at the end of 18 years.   if you can earn 7.5% on your money, how much would you be willing to pay for this investment?
You are going to invest $6,000 for the next 50 years. You expect to earn 8%...
You are going to invest $6,000 for the next 50 years. You expect to earn 8% per year on your investment. You expect that the current tax law and tax rates of 15% on long-term capital gains and 24% on short-term capital gains and income will still be in effect in 50 years. If you take all of your money out in 50 years, how much after-tax money will you have if you invest in a) Regular IRA b) Roth...
Suppose you invest $150 at the end of each month for 6 years into an account...
Suppose you invest $150 at the end of each month for 6 years into an account earning 6% annual interest compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 26 years. How much will you have in the end? How would I solve this using the "TI-84 plus Tvm solver"?
At the end of each of the next 8 years, you plan to put $25,000 in...
At the end of each of the next 8 years, you plan to put $25,000 in the bank. If the annual interest rate is 3%, what is the present value of this planned savings stream? What will the bank balance be at the end of the 8 year period? [Hint: once you know the present value of the savings stream, it's easy to work out the future value]
Bright Inc. will be receiving $5,500 at the end of every month for the next 4...
Bright Inc. will be receiving $5,500 at the end of every month for the next 4 years. If these payments were directly invested into a fund earning 7.00% compounded semi-annually, what would be the future value of the fund at the end of 4 years?
Jennifer will need to pay $200 at the end of every month for the next 12...
Jennifer will need to pay $200 at the end of every month for the next 12 months, except for the payment of the 5th month. What is the present value, assuming a rate of 4%, compounded quarterly? a.2,348.97 b.2,160.06 c.2,254.09 d.2,152.26
Jennifer will need to pay 200 at the end of every month for the next 12...
Jennifer will need to pay 200 at the end of every month for the next 12 months, expect the payment of the 8th month. what is the present value, assuming a rate of 4% compounded quarterly?
4) Jennifer will need to pay $200 at the end of every month for the next...
4) Jennifer will need to pay $200 at the end of every month for the next 12 months, except for the payment of the 10th month. What is the value assuming a rate of 4% compounded quarterly? a) 2261.01 b) 2155.49 c) 2199.02 d) 237.88
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT