Question

In: Finance

Emily deposits $150 at the beginning of each quarter into an account earning 6.7% for 25...

Emily deposits $150 at the beginning of each quarter into an account earning 6.7% for 25 years. How much money will she have at the end of those 25 years?

Solutions

Expert Solution

this can be calculated by using excel.

the answer and the calculations are given as follows

At the end of 25th year the account will be having a balance of $29092.31

the calculations in the excel are given follows

the cell G1 refers to where the interest rate is entered. it has a $ sign because it should be constant all the time

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Bob deposits $1,500 at the beginning of each quarter for sixteen years in a fund earning...
Bob deposits $1,500 at the beginning of each quarter for sixteen years in a fund earning a nominal rate of interest of 6% convertible monthly. The interest from this fund is paid out monthly and can only be reinvested at an effective annual rate of 5.2%. Find Bob’s yield rate for the twenty-year period.
You make deposits at the end of each month into an account earning interest at a...
You make deposits at the end of each month into an account earning interest at a rate of 6%/year compounded monthly. Your deposits will be $2000/month in the first year, $2200/month in the second year, $2420/month in the third year, $2662 in the fourth year, and so on. How much will be in your account at the end of 40 years? No Excel answers please.
Bob deposits $11000 at the beginning of each year for six years in a fund earning...
Bob deposits $11000 at the beginning of each year for six years in a fund earning an effective annual rate of 6.7%. The interest from this fund can only be reinvested at an effective annual rate of 2.1%. Find the accumulated value of Bob’s investment at the end of thirteen years. Round your answer 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.
Suppose a young couple deposits $600 at the end of each quarter in an account that...
Suppose a young couple deposits $600 at the end of each quarter in an account that earns 6.8%, compounded quarterly, for a period of 2 years. After the 2 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 2 years in the account and continue to contribute $200 at the end of each quarter for the next 18 1/2 years, how much will they have in the...
3. Jose deposits $150 at the end of each month into an account that pays 6%...
3. Jose deposits $150 at the end of each month into an account that pays 6% interest compounded monthly . After 8 years of deposits, what is the account balance?
You plan to make monthly deposits of $1,000 into an account at the beginning of each...
You plan to make monthly deposits of $1,000 into an account at the beginning of each month for the next 12 years. If you can earn 3.0% interest, what will your final balance be by the end of 12 years? Round to the nearest cent. ​[Hint: Beginning of period monthly cash flows!]
You plan to make monthly deposits of $1,000 into an account at the beginning of each...
You plan to make monthly deposits of $1,000 into an account at the beginning of each month for the next 11 years. If you can earn 3.4% interest, what will your final balance be by the end of 11 years? Round to the nearest cent. ​[Hint: Beginning of period monthly cash flows!]
You decide to place $200 at the beginning of each month in an investment account earning...
You decide to place $200 at the beginning of each month in an investment account earning interest at 4.33% annually (4.33% / 12 monthly). You plan on following this practice for five years (60 months). How much will you have accumulated in the account at the end of the five-year period? An investor invests $50 an account that returns 5% annually (5% / 12 per month). How much is the investor’s account worth at the end of the five-year period?...
Nataya makes monthly deposits into Fund A at the beginning of each month for 25 years....
Nataya makes monthly deposits into Fund A at the beginning of each month for 25 years. Her first deposit is $40, and each subsequent deposit increases by $10. Aarif contributes $250,000 once, today, into Fund B. The nominal rate that both of these funds earn is 6% per year. However, Fund A compounds interest monthly and Fund B compounds interest quarterly. What is the difference in the balance between these two funds at the end of 25 years?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT