If Mary deposits $4,000 a year for 3 years, starting a year from today, followed by...

If Mary deposits $4,000 a year for 3 years, starting a year from today, followed by 3 annual deposits of

$5,000, into an account that earns 8% per year, how much money will she have accumulated in her

account at the end of 10 years?

Expert Solution

Year	Cash deposit	FV factor (1+8%)^(10-t)	FV factor * Cash deposit
1	4000	1.9990	$ 7,996.02
2	4000	1.8509	$ 7,403.72
3	4000	1.7138	$ 6,855.30
4	5000	1.5869	$ 7,934.37
5	5000	1.4693	$ 7,346.64
6	5000	1.3605	$ 6,802.44
		Total future value	$ 44,338.49

jeff jeffy answered 2 years ago

john wishes to pay $1000 a year for 3 years, starting 5 years from today. interest...

john wishes to pay $1000 a year for 3 years, starting 5 years from today. interest rates are forecast at 2% compounded monthly over the next two years and 4% compounded monthly there after. how much must he set aside today?

Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest...

Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest is 5% for the first 3 years and 7% for the last 3 years. a) What is the uniform series equivalent of the fund (uniform cash flow at end of years 1 through 6)?

Starting at the end of this year you plan to make annual deposit the $5000 for the next 10 years followed by deposits of $13,000 for the following 10 years the deposits are in interest of 4.4%

Starting at the end of this year you plan to make annual deposit the $5000 for the next 10 years followed by deposits of $13,000 for the following 10 years the deposits are in interest of 4.4%, what will the account balance be by the end of 34 years round to the nearest cent?

Quarterly deposits are made into a fund at the beginning of each quarter starting today for...

Quarterly deposits are made into a fund at the beginning of each quarter starting today for 5 years. The first 8 deposits are $1000 each and deposits increase by 1% per quarter thereafter. If the fund earns 8% effective annually, find the accumulated value at the end of 5 years. Please explain which equations you used and do not use excel.

A new company has an upfront cost of $250,000 today. Starting one year from today they...

A new company has an upfront cost of $250,000 today. Starting one year from today they will produce a revenue of $85,000 every year for a total of ten years. The following year (t=11), the revenue will grow at a rate of 7% and this growth rate will remain constant every year forever. The interest rate is 8%. What is the value of these cash flows today for this new company?

Jimmy deposits : $ 4,200 - now, $ 2,100 - 3 years from now, and $...

Jimmy deposits : $ 4,200 - now, $ 2,100 - 3 years from now, and $ 4,200 - 6 years from now. Interest is 3 % for the first 3 years and 11 % for the last 3 years. What is the uniform series equivalent of the fund (uniform cash flow at end of years 1–6)? (Hint : Incorrect Answer = $3456)

If you need $5,000 in four years from today and you can make quarterly deposits of...

If you need $5,000 in four years from today and you can make quarterly deposits of $370 in your money market account, what is the APR you are looking for? If you need $5,000 in four years from today and you can make quarterly deposits of $370 in your money market account, what is the APR you are looking for? You will make the following investments for a boat: $2,500 today, $3,000 at the end of year three, and $1800...

If you save $500 today, $1,000 a year from today, and $2,000 two years from today...

If you save $500 today, $1,000 a year from today, and $2,000 two years from today in an account that earns 12% per year, compounded monthly, how much will you have in three years? Group of answer choices $4,238.77 $4,694.68 $3,920.00 $4,196.86

You receive $4,000 every three months beginning three months from today for 7 years and an...

You receive $4,000 every three months beginning three months from today for 7 years and an additional $1,200 7 years from today. If the interest rate is 3.0% (EAR), which of the following is closest to the present value (PV) of this stream of cash flows? How should I solve this using the hp10bii+ calculator? If you could show me the steps that would be great!

You plan to make annual deposits of $130 for the next 6 years, followed by annual...

You plan to make annual deposits of $130 for the next 6 years, followed by annual deposits of $1,112 for the following 6 years. The deposits earn interest of 4.2%. What will the account balance be by the end of year 27? Round to the nearest cent.

Question