Question

In: Finance

Suppose you will need $12,000 in 3 years. How much must you invest per month in...

Suppose you will need $12,000 in 3 years. How much must you invest per month in order to have $12,000 if money earns an annual rate 6% compounded monthly? How much of the $12000 is interest?

Solutions

Expert Solution

Please upvote if the ans is helpful. Thanks.


Related Solutions

1) Suppose you invest $200 per month for a period of 30 years. a) How much...
1) Suppose you invest $200 per month for a period of 30 years. a) How much money would you have at the end of the 30 year period, assuming that the yearly interest rate is 12% compounded monthly? You can assume that the payments are deposited at the end of each month. (Hint: write the amount accumulated in the bank for the first few months, and try to get a pattern our of that. ) b)Using the same approach indicate...
Suppose you invest $200 per month for a period of 30 years. a) How much money...
Suppose you invest $200 per month for a period of 30 years. a) How much money would you have at the end of the 30-year period, assuming that the yearly interest rate is 12% compounded monthly? You can assume that the payments are deposited at the end of each month. (Hint: write the amount accumulated in the bank for the first few months, and try to get a pattern out of that.) (answer: $698,992.83) b) Using the same approach, indicate...
1.) Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest...
1.) Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an annuity that pays 5% annually? 2.) Bill Jones plans to deposit $2100 at the end of every 6 months for the next 20 years into an annuity that pays 6%. What will be the value of Bill’s annuity at maturity? 3.) Johnson trucking company will have a $40,000 payment due in 5 years. How much would they need to invest quarterly...
How much must you invest now to have 350,000 in 15 years if the interest rate...
How much must you invest now to have 350,000 in 15 years if the interest rate is 10% and compounds continuously? $65,457.33 $66,666.67 $63,848.93 $56,666.67 None of these
Today, you invest $5,000 in an investment that pays 3% per year. How much will your...
Today, you invest $5,000 in an investment that pays 3% per year. How much will your investment be worth in 5 years?
The company invest $600K per month with return of 12%, compounded semiannually. a) How much will...
The company invest $600K per month with return of 12%, compounded semiannually. a) How much will the company have in the investment account at the end of year 10. (Assume that interperiod cash flows earn prorated compound interest.) b) With this investment, the company plans to build the road which requires $100 million. Is the company going to have enough to build it?
Assuming you have $28,100 to invest, how much (in $) do you need to invest in the market fund?
You want to create a portfolio with a beta of 1.5. You want to accomplish this goal by investing in a mutual fund that follows the market and in a stock with a beta of 3.0. Assuming you have $28,100 to invest, how much (in $) do you need to invest in the market fund?
You need $500,000 in 11 years. Assuming you earn 9% on your investments, how much must...
You need $500,000 in 11 years. Assuming you earn 9% on your investments, how much must you invest each year? Show calculations.
How much will you have in 48 months if you invest $73 a month at 12​%...
How much will you have in 48 months if you invest $73 a month at 12​% annual​ interest?
John Madison needs $339,200 in 10 years. How much must he invest at the end of...
John Madison needs $339,200 in 10 years. How much must he invest at the end of each year, at 9% interest, to meet his needs? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581 Investment Amount ? ---------------------------------------------------------------------------- Steve Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. Steve has recently come into an inheritance of $430,800. He estimates that the boat he wants will...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT