Question
In: Finance
You plan to save $1,400 for the next four years, beginning now, to pay for a...
You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent, how much will you have at the end of four years? (Round to the nearest dollar.)
Solutions
Expert Solution
| Money at end of 4 Years | 6,491.93 | ||||
| Time | Opening Balance | Deposit | Total Balance | Interest at 6% | Closing Balance |
| 1.00 | - | 1,400.00 | 1,400.00 | 84.00 | 1,484.00 |
| 2.00 | 1,484.00 | 1,400.00 | 2,884.00 | 173.04 | 3,057.04 |
| 3.00 | 3,057.04 | 1,400.00 | 4,457.04 | 267.42 | 4,724.46 |
| 4.00 | 4,724.46 | 1,400.00 | 6,124.46 | 367.47 | 6,491.93 |
jeff jeffy answered 2 years agoRelated Solutions
A stock will pay no dividends for the next 3 years. Four years from now, the...
A stock will pay no dividends for the next 3 years. Four years
from now, the stock is expected to pay its first dividend in the
amount of $2.1. It is expected to pay a dividend of $2.9 exactly
five years from now. The dividend is expected to grow at a rate of
7% per year forever after that point. The required return on the
stock is 12%. The stock's estimated price per share exactly TWO
years from now, P2...
A stock will pay no dividends for the next 3 years. Four years from now, the...
A stock will pay no dividends for the next 3 years. Four years
from now, the stock is expected to pay its first dividend in the
amount of $2.1. It is expected to pay a dividend of $2.9 exactly
five years from now. The dividend is expected to grow at a rate of
5% per year forever after that point. The required return on the
stock is 14%. The stock's estimated price per share exactly TWO
years from now, P2...
You are 20 years old now and you will save $10,000 annually for the next 30...
You are 20 years old now and you will save $10,000 annually for
the next 30 years and the interest rate is 9%. How much money you
will have when you are 50 years old?
A.
$1,363,075.39
B.
$899,937.73
C.
$1,112,577.83
D.
$998,181.47
What is the PV of $2,000 to be received in 10 years at an
interest rate of 8%?
A.
$980.25
B.
$926.39
C.
$783.12
D.
$1,000
You want to buy a house 5 years from now, and you plan to save $4100...
You
want to buy a house 5 years from now, and you plan to save $4100
per year. beginning Immediately. You will make 5 deposits in an
account that pays 4.3% interest. Under these assumptions, how much
will you have 5 years from today?
Company XYZ soustanding bonds have a $1.000 value and they
mature in 25 years. Their nominal yield to maturity is 9.66 % they
pay interest semiannually, and they sell at a price of $850. What
is...
You plan to retire in 30 years. Beginning in 31 years from now you wish to...
You plan to retire in 30 years. Beginning in 31 years from now
you wish to have an annual retirement
income of $80,000 / year as measured in today’s dollars. The
inflation rate is assumed to be 2.5%. Each
year in retirement you wish to have your retirement income grow
by 3% per year. You plan on living for
35 years in retirement. Starting in one year from now you are
going to make annual deposits into a
savings account....
12. You plan to save for your retirement during the next 30 years. To do this,...
12. You plan to save for your retirement during the next 30
years. To do this, he will invest 700 dollars a month in a stock
account and 300 dollars in a bond account. The performance of the
stock account is expected to be 11% and the bond account pays 6%.
When you retire, you will combine your money in an account with a
9% return. How much can you withdraw each month from your account
if you have a...
Beginning one month from today, you plan to save $250 each month for the next ten...
Beginning one month from today, you plan to save $250 each month
for the next ten years. After that, you plan to increase the amount
you set aside each month from $250 to $450, remaining at this level
for another ten years. In the next ten years, you plan to save $650
each month. Finally, for the last ten years of your investment
program, you plan to save $850 each month. The rate of return on
your invested funds is...
You plan to save $1,200 per month for the next 35 years until you retire. After...
You plan to save $1,200 per month for the next 35 years until
you retire. After you retire you want to withdraw $450,000 per year
for 30 years. If you expect to earn 6% after retirement, what
annual rate will you need to earn until you retire to meet your
goal?
You plan to save $340 per month starting today for the next 43 years "just to...
You plan to save $340 per month starting today for the next 43
years "just to start the month off right." You feel that you can
earn an interest rate of 10 percent compounded monthly. How much
will there be in the account 43 years from today?
a)You plan to save $5,400 per year for the next 12 years. After the last deposit,...
a)You plan to save $5,400 per year for the next 12 years. After
the last deposit, you will keep the money in the account for 5 more
years. The account will earn an interest rate of 5.7 percent. How
much will there be in the account 17 years from today?
$148,368.04
$89,517.93
$30,258.50
$229,712.61
$118,109.54
B)Your grandparents put $12,400 into an account so that you
would have spending money in college. You put the money into an
account that will...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- C++ 11.7: Customer Accounts Write a program that uses a structure to store the following data...
- Question 5 a) Students’ attitude towards teachers and class is a major cause of plagiarism. Some...
- 32. What is empirical research ? 37. Which research positions require a college degree and which...
- In java Step 1) Assume that you have tracked monthly BSIT inquires for 10 months. Save...
- 1.) Motors and generators a) In a homopolar motor (like Faraday’s motor), what happens to the...
- If you are to be responsible in Supply Chain and Logistics management for a company in...
- This is for Python programming, and I am trying to use 2 for loops to ask...
ADVERTISEMENT