You will deposit $10,000 today. It will grow for 10 years at 10% interest compounded monthly....

You will deposit $10,000 today. It will grow for 10 years at 10% interest compounded monthly. You will then withdraw the funds quarterly over the next 4 years. The annual interest rate over those 4 years is 8%. Your quarterly withdrawal will be
A. $1691.90.
B. $1993.74.
C. $1789.37.
D. $660.87.

Expert Solution

Calculate the future value as follows:

Future value $27,070.41491

----------------------------------------------------------------------------------------------------------

Calculate the quarterly payment as follows:

Quarterly payment $1,993.74.

Answer: Option B

jeff jeffy answered 9 months ago

You will deposit $10,000 today. It will grow for 8 years at 10% interest compounded semiannually....

You will deposit $10,000 today. It will grow for 8 years at 10% interest compounded semiannually. You will then withdraw the funds annually over the next 6 years. The annual interest rate is 8%. Your annual withdrawal will be: Use Appendix A and Appendix D to calculate the answer.

How much will be in an account at the end of 5 years if you deposit $10,000 today at 8.7% annual interest, compounded semi-annually?

Practice Time Value of Money Problems 1. How much will be in an account at the end of 5 years if you deposit $10,000 today at 8.7% annual interest, compounded semi-annually? 2. What is the balance at the end of 10 years if $2.500 is deposited today and the account earns 4% interest annually? What about if it's quarterly interest? Which one should be more and why? 3. Suppose you want to have $500,000 saved by the time you reach 30 years old....

If you invest $1,000 today into a deposit account earning 5.75% interest compounded monthly, how much...

If you invest $1,000 today into a deposit account earning 5.75% interest compounded monthly, how much would your investment be worth in 10 years?

If you invest $5,000 today into a deposit account earning 6.25% interest compounded monthly, how much...

If you invest $5,000 today into a deposit account earning 6.25% interest compounded monthly, how much would your investment be worth in 5 years?

If you deposit $45,000 into an account earning 6% interest, compounded monthly. And in addition to...

If you deposit $45,000 into an account earning 6% interest, compounded monthly. And in addition to the initial investment, save $600 each month, how many months will it take to save $67,000? Please explain with an Excel function if possible?

You will deposit $9000 into an account with an annual interest rate of 7% compounded monthly,...

You will deposit $9000 into an account with an annual interest rate of 7% compounded monthly, leave the account untouched for 18 years, and then withdraw equal amounts at the end of each month for the following 9 years, ending with a balance of $9000. What will your monthly withdrawals be?

You invest $10,000 today into a retirement account. You expect to earn 11 percent, compounded monthly,...

You invest $10,000 today into a retirement account. You expect to earn 11 percent, compounded monthly, on your money for the next 25 years. After that, you want to be more conservative, so only expect to earn 7 percent, compounded semi-annually. How much money will you have in your account when you retire 40 years from now, assuming that this is the only deposit you make into the account? A. $443,908 B. $397,062 C. $441,387 D. $483,928 E. $433,590

1. You deposit $2000 in an account earning 8% interest compounded monthly. How much will you...

1. You deposit $2000 in an account earning 8% interest compounded monthly. How much will you have in the account in 15 years? 2. Find the time required for an investment of 5000 dollars to grow to 9000 dollars at an interest rate of 7.5 percent per year, compounded quarterly. Round your answer to two decimal places ___t years. 3. You deposit $3000 in an account earning 5% interest compounded monthly. How much will you have in the account in...

1. You deposit $4000 in an account earning 5% interest compounded monthly. How much will you...

1. You deposit $4000 in an account earning 5% interest compounded monthly. How much will you have in the account in 5 years? 2. Find the time required for an investment of 5000 dollars to grow to 6500 dollars at an interest rate of 7.5 percent per year, compounded quarterly. Round your answer to two decimal places Your answer is t=____ years. 3. You deposit $2000 in an account earning 5% interest compounded monthly. How much will you have in...

1. If you deposit $8,177 in a bank account that pays 7% interest compounded monthly, how...

1. If you deposit $8,177 in a bank account that pays 7% interest compounded monthly, how much will be in your account after 8 years? Please round your answer to the second decimal without dollar sign (e.g. 0.00) 2. If you deposit your money in a bank account that pays 8.66% interest compounded weakly, what is the effective annual rate (EAR)? Please round your answer to the fourth decimal (e.g. 0.0000) 3. If you plan to apply for a PhD...

Question