Question
In: Finance
Today, you open a new savings account and plan to begin depositing equal amounts at the...
Today, you open a new savings account and plan to begin depositing equal amounts at the beginning of each year for 10 years, including the deposit you make today. There will only be these 10 deposits and no withdrawals. Assume the interest rate you will earn is 3%. If you want your account balance to be exactly $15,000 at the end of 10 years, what must be the amount of each deposit?
Solutions
Expert Solution
Calculating Annual Deposit required,
Using TVM Calculation,
PMT = BEG[FV = 15,000, PV = 0, N = 10, I = 0.03]
PMT = $1,270.35
Annual Deposit = $1,270.35
jeff jeffy answered 2 years agoRelated Solutions
Today, you open a new savings account and plan to begin depositing equal amounts at the...
Today, you open a new savings account and plan to begin
depositing equal amounts at the beginning of each year for 5 years,
including the deposit you make today. There will be only these 5
deposits and no withdrawals made to your account. Assume the
interest rate you will earn is 8%. If you want your account balance
to be exactly $40,000 at the end of 5 years, what must be the
amount of each deposit?
Today, you open a new savings account and plan to begin depositing equal amounts at the...
Today, you open a new savings account and plan to begin
depositing equal amounts at the beginning of each year for 9 years,
including the deposit you make today. There will only be these 9
deposits and no withdrawals. Assume the interest rate you will earn
is 4%. If you want your account balance to be exactly $20,000 at
the end of 9 years, what must be the amount of each deposit?
You plan to open a bank account by depositing $500 today and end of each year...
You plan to open a bank account by depositing $500 today and end
of each year for the next nine years (year 1, year 2, ……. year 9).
If the interest rate is 2%, what will be your balance in ten years?
show workings in excel file
You start a savings account today by depositing $1,000 in an account. Each year you add...
You start a savings account today by
depositing $1,000 in an account. Each year you add 3% to the amount
you deposited in the previous year. You do this for 20 years (21
total payments including the payment today.) The interest rate is
6%. How much will you have in the bank at the end of year 20.
Today, you open a new savings account and deposit $3,000. No other deposits or withdrawals are...
Today, you open a new savings account and deposit $3,000. No
other deposits or withdrawals are made to your account. Assume you
will earn 4% simple interest per year. How much will your
investment be worth in 25 years?
Today, you open a new savings account and deposit $3,000. No other deposits or withdrawals are...
Today, you open a new savings account and deposit $3,000. No
other deposits or withdrawals are made to your account. Assume you
will earn 4% simple interest per year. How much will your
investment be worth in 25 years
Today, you open a new savings account and deposit $3,000. No other deposits or withdrawals are...
Today, you open a new savings account and deposit $3,000. No
other deposits or withdrawals are made to your account. Assume you
will earn 4% simple interest per year. How much will your
investment be worth in 25 years?
Today, you open a new savings account and deposit $5,000. Noother deposits or withdrawals are...
Today, you open a new savings account and deposit $5,000. No
other deposits or withdrawals are made to your account. Assume you
will earn a 3% simple interest per year. How much will your
investment be worth in 20 years?
Today, you begin to receive payments of equal amounts at the beginning of each year for...
Today, you begin to receive payments of equal amounts at the
beginning of each year for 10 years (including the payment you
receive today). Assume the appropriate discount rate is 3%. If the
present value of this series of payments is $40,000, what must be
the amount of each payment?
Lila Gibbons decides to open a retirement savings account today and she wants to make equal...
Lila Gibbons decides to open a retirement savings account today
and she wants to make equal payments every month for the next 9
years. She anticipates she can earn 5.20% on the account which
compounds monthly and would like to have $110,000 at the end of the
9 years. To achieve her goals, the payments should be closest
to:
A. $800.87.
B. $797.42.
C. $824.50.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
- You must evaluate a proposal to buy a new milling machine. The base price is $175,000,...
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
ADVERTISEMENT