Question
In: Finance
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.
Solutions
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 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?
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?
How much money does Suzie need to have in her retirement savings account today if she...
How much money does Suzie need to have in her retirement savings
account today if she wishes to withdraw $42,000 a year for 25
years? She expects to earn an average rate of return of 9.55
percent.
Group of answer choices
$394,819.18
$407,419.81
$385,160.98
$390,202.69
$388,683.83
Allen wants to open a savings account. He will transfer $40,000 from another account to the...
Allen wants to open a savings account. He will transfer $40,000
from another account to the savings account today. After that, he
will deposit $1,000 every month to the savings account. If the
annual interest rate is 3.2%, what will be the account balance in
his savings account after 5 years?
a.
$112,653.52
b.
$123,877.44
c.
$123,877.23
d.
$111,903.31
how would this be solved using finance functions in excel?
Suppose you open today (year 0) a savings account with $5,000; the account earns an interest...
Suppose you open today (year 0) a savings account with $5,000;
the account earns an interest of 3% APR annually. At the end of
year 2 you deposit an additional $5,000 in the savings account, and
then at the end of year 7 you deposit another $5,000 in the
account. There is a total of 3 deposits made so far. If you did not
make any withdrawals or additional deposits, then approximately
what is the balance (FV) in the account...
Jacob decides to open a savings account while he is in college. His bank offers him...
Jacob decides to open a savings account while he is in college.
His bank offers him an account that earns 1.10% APR compounded
monthly. If he opens the account with $600 and deposits $150 every
month until he graduates in four years, how much money will he have
in his account?
$8,370.08
$7,984.28
$29,585.95
$7,800
5 points
QUESTION 12
Lauren is purchasing a house for $175,000. Her bank gives her a
30 year loan with an APR of 4.25%....
Scenario: You make a $2,000 deposit to a retirement account today. The account earns a 7.65%...
Scenario: You make a $2,000 deposit to a retirement account
today. The account earns a 7.65% rate of interest (i.e. APR)
compounded quarterly. What is the value of the investment in 6
years?
Scenario: Suppose you want to take out a
$150,000 semi annual loan from a bank. The maximum semi-annual
payment you can afford is 7,000. The market interest rates are 7.90
APR.
Under these conditions, what would the term of this loan be?
(round answer to the nearest...
An individual wants to accumulate $750,000 for retirement in 30 years. She wants to make yearly...
An individual wants to accumulate $750,000 for retirement in 30
years. She wants to make yearly deposits into an account which
earns 8% annually. Determine the size of the payments needed if the
payments are made at: A: the end of the year. ($6620.58) B: the
beginning of each year. ($6130.16)
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?
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