If you deposit $5,000 at the end of each of the next 20 years into an...

If you deposit $5,000 at the end of each of the next 20 years into an account paying 10.8 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years? Show Work.

Expert Solution



	This can be solved using the Future value of annuity
	Future value of annuity is = P*((1+r)^n-1)/r
	P is Deposit at the end of each year = $ 5,000/.
	"n" is No of years = 20
	"r" is Rate of Interest = 10.80%
	Future value of annuity is = ?
	Future value of annuity is = 5000*((1+0.108)^20-1)/0.108
	Future value of annuity is = 5000*(6.77670/0.108)
	Future value of annuity is = 5000*62.74720
	Future value of annuity is = $ 313,736/.
	Money will you have in the account in 20 years = $ 313,736/.

	P is Deposit at the end of each year = $ 5,000/.
	"n" is No of years = 40
	"r" is Rate of Interest = 10.80%
	Future value of annuity is = ?
	Future value of annuity is = 5000*((1+0.108)^40-1)/0.108
	Future value of annuity is = 5000*(59.47702/0.108)
	Future value of annuity is = 5000*550.71319
	Future value of annuity is = $ 2,753,566/.
	Money will you have in the account in 20 years = $ 2,753,566/.

jeff jeffy answered 1 year ago

If you deposit $5,900 at the end of each of the next 20 years into an...

If you deposit $5,900 at the end of each of the next 20 years into an account paying 10.8 percent interest, how much money will you have in the account in 20 years?

If you deposit $4,800 at the end of each of the next 20 yearsinto an...

If you deposit $4,800 at the end of each of the next 20 years into an account paying 10.8 percent interest, how much money will you have in the account in 20 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value$ How much will you have if you make deposits for 40 years?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value$

If you deposit $9127 at the end of each of the next 28 years into an...

If you deposit $9127 at the end of each of the next 28 years into an account paying 7.6 percent interest, how much money will you have in the account in 28 years? (Round time value factors to 6 decimal places and final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456 should be entered as 123456.)

Suppose you deposit $20,000 at the end of each of the next 30 years into a...

Suppose you deposit $20,000 at the end of each of the next 30 years into a retirement account. Immediately after your last deposit, you take the entire accumulated value in your account and purchase a 20-year annuity, which will pay you X at the beginning of each year for 20 years. The price of this 20-year annuity is equal to the present value (at the time of purchase) of the 20 annual cash flows. The effective annual interest rate through...

16. If you deposit $1000 at the end of each of the next 10 years, how...

16. If you deposit $1000 at the end of each of the next 10 years, how much will you have in 20 years if you earn 10% APR compounded annually?A. $41,338B. $40,187C. $42,492D. $43,937E. $42,531 Show Process Please

You deposit $5,000 into an account at the end of year 0. You deposit $5,000 every...

You deposit $5,000 into an account at the end of year 0. You deposit $5,000 every three (3) months beginning at the end of year 1 and continuing through the end of year 3. You also deposit into the account an amount X starting at the end of year 6 and repeat it every three (3) months for a total of four (4) deposits. You withdraw $112,160 at the end of year 7. After the withdrawal at the end of...

You plan on saving $12,300 at the end of each of the next 20 years and...

You plan on saving $12,300 at the end of each of the next 20 years and investing your savings at an annual interest rate of 8%. At the end of year 20 you plan on retiring. You plan on leaving your savings in investments yielding an annual rate of 8% and withdrawing from savings a constant amount for the next 30 years commencing at the end of your first year of retirement. How large a withdrawal can you afford to...

You will be receiving $25,000 at the end of each year for the next 20 years....

You will be receiving $25,000 at the end of each year for the next 20 years. If the correct discount rate for such a stream of cash flows is 10% then what is the present value of the cash flows?

45.You plan on saving $12,300 at the end of each of the next 20 years and...

45.You plan on saving $12,300 at the end of each of the next 20 years and investing your savings at an annual interest rate of 8%. At the end of year 20 you plan on retiring. You plan on leaving your savings in investments yielding an annual rate of 8% and withdrawing from savings a constant amount for the next 30 years commencing at the end of your first year of retirement. How large a withdrawal can you afford to...

Vanessa invests $5,000 at the end of each of the next 15 years and her investment...

Vanessa invests $5,000 at the end of each of the next 15 years and her investment earns interest at an annual effective rate of 8%. The interest that she receives at the end of each year is reinvested and earns interest at an annual effective rate of 5%. Calculate the accumulated value at time 15 years. NO EXCEL EXCEL= THUMBS DOWN FORMULAS / SHOW WORK = THUMBS UP

Question