Question

In: Finance

Round all answers to the 2 decimal place a. Derek will deposit $5,859.00 per year for...

Round all answers to the 2 decimal place

a. Derek will deposit $5,859.00 per year for 11.00 years into an account that earns 5.00%, The first deposit is made next year. How much will be in the account 45.00 years from today?

b. Derek will deposit $1,907.00 per year for 18.00 years into an account that earns 11.00%, The first deposit is made next year. He has $15,588.00 in his account today. How much will be in the account 46.00 years from today?

c. Derek will deposit $1,880.00 per year for 15.00 years into an account that earns 13.00%. Assuming the first deposit is made 4.00 years from today, how much will be in the account 30.00 years from today?

d. What is the value today of receiving $2,416.00 per year forever? Assume the first payment is made next year and the discount rate is 15.00%.

e. What is the value today of receiving $2,740.00 per year forever? Assume the first payment is made 7.00 years from today and the discount rate is 12.00%.

f. Suppose you deposit $2,743.00 into an account today that earns 14.00%. In 15.00 years the account will be worth $________.

Expert Solution

a.

Given,

Annual deposits (A) = $ 5859

Period of annual deposits (n₁) = 11 years

Interest rate (r) = 5% or 0.05

Total period = 45 years

Rest of the period (n₂) = Total period - period of annual deposits

= 45 years - 11 years = 34 years

Solution :-

jeff jeffy answered 1 year ago

Find the mean for the following frequency tables. (Round your answers to one decimal place.) (a) ...

Find the mean for the following frequency tables. (Round your answers to one decimal place.) (a) Grade Frequency 49.5–59.5 2 59.5–69.5 3 69.5–79.5 6 79.5–89.5 14 89.5–99.5 5 (b) Daily Low Temperature Frequency 49.5–59.5 50 59.5–69.5 30 69.5–79.5 15 79.5–89.5 1 89.5–99.5 0 (c) Points per Game Frequency 49.5–59.5 14 59.5–69.5 32 69.5–79.5 15 79.5–89.5 21 89.5–99.5 2

PLEASE ANSWER ALL #5 Derek will deposit $2,250.00 per year into an account starting today and...

PLEASE ANSWER ALL #5 Derek will deposit $2,250.00 per year into an account starting today and ending in year 5.00. The account that earns 11.00%. How much will be in the account 5.0 years from today? #6 Derek has the opportunity to buy a money machine today. The money machine will pay Derek $16,744.00 exactly 17.00 years from today. Assuming that Derek believes the appropriate discount rate is 10.00%, how much is he willing to pay for this money machine?...

1. Derek will deposit $1,692.00 per year into an account starting today and ending in year...

1. Derek will deposit $1,692.00 per year into an account starting today and ending in year 5.00. The account that earns 14.00%. How much will be in the account 5.0 years from today? 2. Derek has the opportunity to buy a money machine today. The money machine will pay Derek $10,304.00 exactly 15.00 years from today. Assuming that Derek believes the appropriate discount rate is 14.00%, how much is he willing to pay for this money machine?

Derek will deposit $2,706.00 per year into an account starting today and ending in year 25.00....

Derek will deposit $2,706.00 per year into an account starting today and ending in year 25.00. The account that earns 10.00%. How much will be in the account 25.0 years from today?

Derek will deposit $2,703.00 per year into an account starting today and ending in year 10.00....

Derek will deposit $2,703.00 per year into an account starting today and ending in year 10.00. The account that earns 5.00%. How much will be in the account 10.0 years from today? the answer is 38,400.95 but i dont know how to solve it, im still confuse on this, can you please help me

Derek will deposit $5,678.00 per year for 15.00 years into an account that earns 13.00%, The...

Derek will deposit $5,678.00 per year for 15.00 years into an account that earns 13.00%, The first deposit is made next year. He has $10,763.00 in his account today. How much will be in the account 38.00 years from today? Answer format: Currency: Round to: 2 decimal places.

Derek will deposit $4,355.00 per year for 30.00 years into an account that earns 9.00%, The...

Derek will deposit $4,355.00 per year for 30.00 years into an account that earns 9.00%, The first deposit is made next year. How much will be in the account 45.00 years from today?

Derek will deposit $1,528.00 per year for 14.00 years into an account that earns 13.00%, The...

Derek will deposit $1,528.00 per year for 14.00 years into an account that earns 13.00%, The first deposit is made next year. He has $14,070.00 in his account today. How much will be in the account 36.00 years from today? Derek will deposit $3,102.00 per year for 9.00 years into an account that earns 5.00%. Assuming the first deposit is made 4.00 years from today, how much will be in the account 35.00 years from today?

Derek will deposit $5,939.00 per year for 18.00 years into an account that earns 14.00%, The...

Derek will deposit $5,939.00 per year for 18.00 years into an account that earns 14.00%, The first deposit is made next year. He has $10,013.00 in his account today. How much will be in the account 36.00 years from today? Derek will deposit $4,592.00 per year for 13.00 years into an account that earns 7.00%. Assuming the first deposit is made 6.00 years from today, how much will be in the account 35.00 years from today? Suppose you deposit $2,798.00...

Derek will deposit $2,239.00 per year for 25.00 years into an account that earns 9.00%, The...

Derek will deposit $2,239.00 per year for 25.00 years into an account that earns 9.00%, The first deposit is made next year. How much will be in the account 36.00 years from today? Answer format: Currency: Round to: 2 decimal places.