Question

In: Finance

a. Use the appropriate formula to determine the periodic deposit.

b. How much of the financial goal comes from deposits and how much comes from interest?

Expert Solution

(a) Here, the deposits will be same every month, so it is an annuity. The future value of annuity is $180000. Here we will use the future value of annuity formula as per below:

FVA = P * ((1 + r)ⁿ - 1 / r)

where, FVA is future value of annuity = $180000, P is the periodical amount, r is the rate of interest = 4.5% compounded monthly. So monthly rate = 4.5% / 12 = 0.375% and n is the time period = 12 * 12 = 144 months

Now, putting these values in the above formula, we get,

$180000 = P * ((1 + 0.375%)¹⁴⁴- 1 / 0.375%)

$180000 = P * ((1 + 0.00375)¹⁴⁴- 1 / 0.00375)

$180000 = P * ((1.00375)¹⁴⁴- 1 / 0.00375)

$180000 = P * ((1.71427461161- 1) / 0.00375)

$180000 = P * (0.71427461161 / 0.00375)

$180000 = P * 190.473229763

P = $180000 / 190.473229763

P = $945.01

So, the periodic deposit is $945.01

(b) Financial goal from deposits = $945.01 * 144 = $136081.44

Financial goal from interest = $180000 - $136081.44 = $43918.56

jeff jeffy answered 2 years ago

Determine the periodic deposit. Round up to the nearest dolar.

Determine the periodic deposit. Round up to the nearest dolar. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit: $? at the end of every six months Rate: 6% compounded semiannually Time: 8 years Financial Goal: $490,000

Use the appropriate formula to determine the most probable speed (in miles per hour) for N2...

Use the appropriate formula to determine the most probable speed (in miles per hour) for N2 molecules at 3.00 x 102 K. (As you do this, be sure to show your units explicitly.) Repeat the calculation for N2 molecules at 1.00 x 103 K.

Use a cell reference or a single formula where appropriate in order to receive full credit....

Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. The marketing department of Acme Inc. has estimated the following demand function for its popular carpet deodorizer, Freshbreeze: Q = 100 – 5p, where Q is the quantity of an 8 oz box sold (in thousand units) and p the price of an 8 oz....

Deposit function. Calculate the Balance - Deposit If the action is Deposit 'D’, use a deposit...

Deposit function. Calculate the Balance - Deposit If the action is Deposit 'D’, use a deposit function to add funds to the account Deposit Input userchoice = input ("What would you like to do?\n") userchoice = 'B' deposit_amount = 200 Deposit Output What would you like to do? How much would you like to deposit today? Deposit was $200, current balance is $700.25 Write a function called `deposit`. Request from the user the amount to be deposited. This value should...

Ayayai Inc. is trying to determine whether to use the FIFO or average cost formula. The...

Ayayai Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases Cost of Goods Sold Ending Inventory Date Units Cost Total Units Cost Total Units Cost Total Oct. 2 9,600 $13 $124,800 9,600 $13 $124,800 15 16,000 15 240,000 [1] [2] [3] [4] [5] 29 21,400 [6] [7] [8] [9] [10] [11] [12] [13] The company accountant has prepared the following partial statement of income to...

Sheffield Inc. is trying to determine whether to use the FIFO or average cost formula. The...

Sheffield Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases Cost of Goods Sold Ending Inventory Date Units Cost Total Units Cost Total Units Cost Total Oct. 2 10,500 $12 $126,000 10,500 $12 $126,000 15 17,500 14 245,000 [1] [2] [3] [4] [5] 29 20,000 [6] [7] [8] [9] [10] [11] [12] [13] The company accountant has prepared the following partial statement of income to...

Use the formula for computing future value using compound interest to determine the value of an...

Use the formula for computing future value using compound interest to determine the value of an account at the end of 5 years if a principal amount of $5,000 is deposited in an account at an annual interest rate of 3% and the interest is compounded monthly.

Martinez Inc. is trying to determine whether to use the FIFO or average cost formula. The...

Martinez Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases Cost of Goods Sold Ending Inventory Date Units Cost Total Units Cost Total Units Cost Total Oct. 2 8,100 $11 $89,100 8,100 $11 $89,100 15 13,500 13 175,500 [1] [2] [3] [4] [5] 29 20,800 [6] [7] [8] [9] [10] [11] [12] [13] The company accountant has prepared the following partial statement of income to...

When an object is falling because of gravity, the following formula can be use to determine...

When an object is falling because of gravity, the following formula can be use to determine the distance that object falls in a specific time period: d = 1/2 g t*t The variables in the formula are as follows: d is the distance in meters g is 9.8 t is the amount of time, in seconds that the object has been falling. Design a function called fallingDistance() that accepts an object's falling time (in seconds) as an argument. The function...

Determine the empirical formula for each compound from the molecular formula. molecular formula=C3H6 empirical formula= molecular...

Determine the empirical formula for each compound from the molecular formula. molecular formula=C3H6 empirical formula= molecular formula=C6H12O6 empirical formula=