At the end of each year for ten years you deposit $750 in an account that...

At the end of each year for ten years you deposit $750 in an account that earns an annual rate of return of 12%. What is the present value of these deposits?

Solutions

Expert Solution

Present value of annuity = p*[1 - (1+r)^-n / r ]

P = yearly deposits

r = rate of interest

n = number of periods

Present value = 750*[1 - (1+12%)^-10 / 12%]

Present value = $4237.67(rounded to two decimals)

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

1) At the end of each year you deposit $750 in a retirement account that pays...

1) At the end of each year you deposit $750 in a retirement account that pays 6%. How much money will you accumulate for your retirement if you plan to retire 30 years from now? N= I= PV= PMT= FV= Highlight type of annuity: BEGIN END 2) Starting today Andrew will deposit $2,000 per year in a retirement account that pays 6%. How much money will he accumulate for his retirement if he plans to retire 50 years from now?...

If you deposit $2,000 at the end of each year into an IRA account that is...

If you deposit $2,000 at the end of each year into an IRA account that is expected to earn 8% per year simple interest, how much will be in the account in 30 years? (Answer to the nearest dollar)

You will deposit $80 at the end of each month for 15 years into an account...

You will deposit $80 at the end of each month for 15 years into an account with annual interest rate 3% compounded monthly, and then withdraw equal amounts at the end of each month for the following 25 years, ending with a zero balance. What will your monthly withdrawals be?

If you deposit $15,000 per year for 9 years (each deposit is made at the end...

If you deposit $15,000 per year for 9 years (each deposit is made at the end of each year) in an account that pays an annual interest rate of 9%, what will your account be worth at the end of 9 years? Please show details and related formulas, I will give thumbs up ASAP once I check the answer.

You deposit $1969.55 in an account today. You will deposit $566.09 at the end of each...

You deposit $1969.55 in an account today. You will deposit $566.09 at the end of each month for the next 12 months and $946.03 each month for the following 13 months. How much interest will you have earned in 25 months if the account pays 5% compounded monthly?

You deposit $1437.46 in an account today. You will deposit $547.45 at the end of each...

You deposit $1437.46 in an account today. You will deposit $547.45 at the end of each month for the next 14 months and $990.78 each month for the following 12 months. How much interest will you have earned in 26 months if the account pays 20% compounded monthly?

if you deposit 1200 at the end of each year of the first 8 years and...

if you deposit 1200 at the end of each year of the first 8 years and 1800 at the end of each year for the second 8 years. find the fund value at the end of 16 year, if the fund earn. it's 8%

You deposit $4,000 in the bank at the end of each year for 30 years. If...

You deposit $4,000 in the bank at the end of each year for 30 years. If the bank pays interest of 5.25% per annum, what amount will you have accumulated if interest is compounded: a. Annually b. Semi-Annually c. Quarterly d. Monthly e. Daily Please show all your work and explain your answers.

You deposit $1,300 at the end of each year into an account paying 8.6 percent interest....

You deposit $1,300 at the end of each year into an account paying 8.6 percent interest. a. How much money will you have in the account in 24 years? b. How much will you have if you make deposits for 48 years?

You deposit $1,700 at the end of each year into an account paying 11.6 percent interest....

You deposit $1,700 at the end of each year into an account paying 11.6 percent interest. Required: (a) How much money will you have in the account in 17 years? (b) How much will you have if you make deposits for 34 years?

Subjects