Question

In: Finance

Seabelo Transport Company decide that they must start saving for a new vehicle in 5 years...

Seabelo Transport Company decide that they must start saving for a new vehicle in 5 years time. In an account that pays 5.4% p.a. compounded monthly they deposit a one off payment of $20 000 and $500 at the end of each month. How much will they have at the end of 5 years?

Solutions

Expert Solution

The answer is as follows:

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

You are 25 years old and decide to start saving for your retirement. You plan to...
You are 25 years old and decide to start saving for your retirement. You plan to save $3000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 65. Suppose you earn 10% per year on your retirement savings. How much will you have saved for retirement? How much will you have saved if you wait until age 35 to start saving (again,...
You are 25 years old and decide to start saving for your retirement. You plan to...
You are 25 years old and decide to start saving for your retirement. You plan to save $5,000 at the end of each year​ (so the first deposit will be one year from​ now), and will make the last deposit when you retire at age 65. Suppose you earn 8% per year on your retirement savings. a. How much will you have saved for​ retirement? The amount that you will have accumulated for retirement is _____ b. How much will...
You have just turned 25 years old and decide to start saving for your retirement. You...
You have just turned 25 years old and decide to start saving for your retirement. You plan to save $5,000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire when you turn 65 (that is, 40 deposits in total. Suppose your pension fund earns 8% per year on your retirement savings. a) How much will you have saved for retirement by the time you...
2.You decide to start saving for your retirement, in 25 years time. Today you make an...
2.You decide to start saving for your retirement, in 25 years time. Today you make an initial lump sum payment of 10,000, then decide to save 500 per semester and expect an average return of 6.6%(comp.semesterly or semiannually). How much will you have in the end, assuming you pay the money in the beginning of each semester? 3.Your bank has just launched a savings scheme which pays an interest at 5.15% monthly compounded, over 10 years. If you invest 100...
12.Larry decide to begin saving towards the purchase of a backup generator in 5 years. If...
12.Larry decide to begin saving towards the purchase of a backup generator in 5 years. If he puts $2,000 at the beginning of each of the next 5 years in a savings account paying 9 percent compounded quarterly, how much will you accumulate after 5 years? Note: You are only making 5 payments, and the first payment is today. a. $11,636.23 b. $13,046.67 c. $11,969.42 d. $12,043.17 e. $13,164.19
You start saving $1,000 at the end of this year and increase your saving by 5%...
You start saving $1,000 at the end of this year and increase your saving by 5% every year for 18 years. Your account earns 13%. How much will you have in your account in 18 years?
Richard and his dad decide to start saving for retirement at the same time. Richard is...
Richard and his dad decide to start saving for retirement at the same time. Richard is 20 years old and his dad is 40 years old. Both plan to put money into an IRA until they are 65. Both invest in the same things and earn the same rate of return which is 7%. Finally, in their retirement years, both believe they can score an APR of 4%. If they both want to receive $2,000 per month during retirement then...
5.         Suppose you start saving $15,000 per year (starting next year) for the 40 years you...
5.         Suppose you start saving $15,000 per year (starting next year) for the 40 years you are working. How much can you withdraw each year for the 38 years you are retired? Assume that you earn an 8% return for the years you are saving and a 4% return for the years you are retired.
Instead of buying Starbucks (or boba), I decide to start saving the money. Assume it's $4/...
Instead of buying Starbucks (or boba), I decide to start saving the money. Assume it's $4/ drink with an average of 3 times per week. How much will we accumulate if we invest these funds for 40 years at 8% (for simplicity assume funds are deposited once per year at the end of the year)>
g. Now let’s say you wait just 5 years before you start saving for retirement, how...
g. Now let’s say you wait just 5 years before you start saving for retirement, how much will that cost you in interest? How about 10 years? How about just 1 year? (10 points) Now you need to consider if that is enough. If you live to be 90 years old, well above average, then from the time you retire, to the time you are 90, you will have to live on what you have in retirement (not including social...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT