Question
In: Finance
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!]
Solutions
Expert Solution
Use FV function in EXCEL to find the future value
=FV(rate,nper,pmt,pv,type)
rate=3.4%/12=0.2833%
nper=12*11=132
pmt=1000
pv=0
type=1 (Because the payments are made at the beginning of the month)
=FV(0.2833%,132,-1000,0,1)=$160,253.48
The final balance after 11 years=$160,253.48
jeff jeffy answered 2 years agoRelated Solutions
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 15 deposits at the end of each year in an account that...
You plan to make 15 deposits at the end of each year in an
account that pays 6% compound interest annually. If the first
deposit is $ 1,000 and subsequently 500 are added each year to the
amount deposited the previous year (1000, 1500, ...), the amount of
the account at the end of the 15 years will be close to:
a. $71,550
b. $97,777
c. $92,242
d. $87,021
e.No correct answer is provided.
You plan to make five deposits of $1,000 each, one every 6 months, with the first...
You plan to make five deposits of $1,000 each, one every 6
months, with the first payment being made in 6 months. You will
then make no more deposits. If the bank pays 7% nominal interest,
compounded semiannually, how much will be in your account after 3
years? Round your answer to the nearest cent. $ One year from today
you must make a payment of $9,000. To prepare for this payment, you
plan to make two equal quarterly deposits...
You plan to make five deposits of $1,000 each, one every 6 months, with the first...
You plan to make five deposits of $1,000 each, one every 6
months, with the first payment being made in 6 months. You will
then make no more deposits. If the bank pays 5% nominal interest,
compounded semiannually, how much will be in your account after 3
years? Round your answer to the nearest cent. $ One year from today
you must make a payment of $13,000. To prepare for this payment,
you plan to make two equal quarterly deposits...
You are planning to make monthly deposits of $120 into a retirement account that pays 9...
You are planning to make monthly deposits of $120 into a
retirement account that pays 9 percent annual interest (APR),
compounded monthly. If your first deposit will be made one month
from now, how large will your retirement account be in 19
years?
rev: 09_17_2012
Multiple Choice
$71,900.73
$75,495.77
$66,266.58
$68,305.69
$862,808.76
You are planning to make monthly deposits of $170 into a retirement account that pays 8...
You are planning to make monthly deposits of $170 into a
retirement account that pays 8 percent interest compounded monthly.
If your first deposit will be made one month from now, how large
will your retirement account be in 21 years?
You are planning to make monthly deposits of $70 into a retirement account that pays 14...
You are planning to make monthly deposits of $70 into a
retirement account that pays 14 percent interest compounded
monthly. If your first deposit will be made one month from now, how
large will your retirement account be in 22 years?
$128,355.75, $1,466,922.82, $116,131.39, $122,243.57,
$101,166.24
You make deposits of $400 at the beginning of every month, into an account paying 8%...
You make deposits of $400 at the beginning of
every month, into an account paying 8% interest compounded monthly.
The value at the end of 15 years is:
a.136,338
b.137,338
c.138,338
d.139,338
You will make deposits of $1,000 at the end of each year for 40 years in...
You will make deposits of $1,000 at the end of each year for 40
years in your investment account. After the 40th deposit, you will
immediately withdraw all money from the account to buy a retirement
annuity for 35 years with equal annual payments (paid at year-end)
from a life insurance company. If the annual rate of return over
the entire period (75 years) is 5%, how much is the annual payment
from the insurance company?
The amount of your...
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.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 4. Why did the United States and the Soviet Union find themselves in a “Cold War”...
- The Facts: Ann and Bill decided to start a coffee shop. They agreed Bill would provide...
- MARGI sells different types of wine. Customers place orders to the most popular “Summer Wine” at...
- A firm's bonds have a maturity of 8 years with a $1,000 face value, have an...
- Naive reasoning suggests that a string theory vacuum with cosmological constant Lambda1 is always unstable as...
- I. Design and code a class Rectangle that has the following properties: Two private members double...
- A bond has a $1,000 par value, 10 years to maturity, and an 8% annual coupon...
ADVERTISEMENT