1) Steve decided to save $100 at the beginning of each month for the next 7 months. If the interest rate is 5%, how much money will he have at the end of 7 months?
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- 1. In order to save $57,000 in five years, John will start saving money next month. He already has $10,000 in his account. The account is paying him 0.1 percent interest per month. In order to have $57,000 in five years, how much will he have to deposit into that account each month? (Show work)Suppose your parents have just retired and have $1 million in a retirement account. For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted?6. Michael wants to have $20,000 in an investment account seven years from now. The account will pay 0.4 percent interest per month. If Michael saves money every month, starting one month from now, how much will he have to save each month?
- Suppose Chris starts saving in 3 years from today. He will save $20,000 each year for 6 years (until the end of year 8). Then he leaves that money in the same account until the end of year 10. How much will he have saved at the end of year 10 if he earns 4.3% interest.How much more money should be invested now in order to receive $1,250.00 at the beginning of each month for 10 months instead of $260.00 at the beginning of each month for 30 months? Assume an interest rate of 5.00% compounded annually. How much should Robert's dad invest in a savings account today, to be able to pay for Robert's rent for the next five years, if the rent is $450, payable at the beginning of each month? The savings account earns 3.26% compounded monthly.Your financial advisor has encouraged you to save $500 each month for retirement. You expectto retire in 40 years. How much will you have at the end of 40 years? If you want to have a 30-year retirement, how much income would that amount generate each month of yourretirement? Show calculations.
- Benji wants to purchase a new car in 4 years. He plans on putting $8,000 down. He will be putting a sum away at the beginning of each month to accumulate this amount in an account paying 9% that compounds monthly. What payment will he have to make to reach his goal?If you can't start saving that early in your career, you will need to save more each month. How much would you need to save each month during the last 30 years of your career to have $700,000 when you retire? (Still assuming your retirement account earns an APR of 4%.)Danny is saving towards his vacation. He has determined that the total cost including airfare and accommodation will amount to $5,000. a. If he sets aside $400 per month from his salary, starting from the end of this month, in an account that pays interest of 9% per annum, will he have enough to make the trip at the end of the year? b. How much more will he have in the account if he made his first deposit of $400 today? What kind of annuity is this?
- If John wants to retire with $10,000 per month, how much principal is necessary to generate this amount of monthly income if the interest rate is 8%?t $ Read It Need Help?a) Anu wants to put aside an amount at the beginning of each month while working for the next 5 years (60 months). At the end of 60 months, she wants to start a business and she plans to have a budget for it of at least $50,000. How much should she put aside each month if interest payable on her savings is 0.125% per month? [Hint: think about a Geometric Sequence (GP).] (Give your answer to 2 decimal places.) b) Suppose that the sum of $100 is invested at an annual rate of interest of 10%. Calculate the value of the investment in 5 years’ time if the interest is compounded (i) weekly and (ii) semi-annually Show all your calculations. (Give your answer to 2 decimal places.)John and Rosamond want to retire in 5 years and can save $140 every three months. They plan to deposit the money at the end of each quarter into an account paying 8.72% compounded quarterly. How much will they have at the end of 5 years? (Round your answer to the nearest cent.)_____$