16. Calculate the future value of $8,000 earning 9% interest, compounded quarterly, for 11 years. Round to the nearest cent. 17. What lump sum should be deposited in an account that will earn at an annual rate of 12%, compounded quarterly, to grow to $110,000 for retirement in 25 years? 18. How much money should be invested in an account that earns 9% interest, compounded quarterly, in order to have $5,000 in 5 years? Round to the nearest cent. 19. You borrow $7,000 to help pay your college expenses. You agree to repay the loan at the end of 4 years at 8% interest, compounded quarterly. What is the maturity value of the loan? 20. A couple plans to invest money for their child's college education. What principal must be deposited by the parents when their child turns 7 in order to have $30,000 when the child reaches the age of 18? Assume the money earns 6% interest, compounded quarterly.

Q: Compute the amount of money to be set aside today

A: Present value means the value of  future money . Future cashflow are discounted at a discounted…

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A: The cash flows that are started at a specified period instead of immediately after the investment…

Q: What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the…

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A: Using excel PV function

Q: Suppose you save $75 quarterly for 25 years. If you earn 6% per year on your savings, how much will…

A: The future value is the estimated value of an investment that accounts for compound interest or…

Q: How much will a $100 deposit made today be worth in 10 years if interest is compounded quarterly at…

A: Future value of the deposit includes the amount being deposited and amount of interest accumulated…

Q: Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you…

A: Interest is the cost of borrowing or lending money.

Q: Compute the present value of an annuity of $ 632 per year for 24 years, given a discount rate of 10…

A: The current worth of future annuities can be determined by using the PV formula function in the…

Q: What are the future value and the interest earned if $3800 is invested for 7 years at 8% compounded…

A: Step 1 Future Value The value of an asset at a future date is its future value. It is the present…

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: Given, The payments $4000 Interest rate is 10% Term is 20 years

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A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years

Q: What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The…

A: Annuity = a = $4600Time = t = 4 YearsInterest Rate = r = 7%

Q: 1.-What is the size of 60 monthly payments and 5 annuities that result from the purchase of land…

A: As per the honor code, we’ll answer only one question at a time, we have answered the first question…

Q: Suppose you wish to accumulate $20,000 over a 10-year period in an account that pays a steady 5% per…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: 1. How much money will you have in an account after 16 years if your initial investment is $8300…

A: Compound interest is the interest calculated on both the principal amount as well as the interest…

Q: find the present value of an annuity due

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A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Suppose that your bank pays 6% interest, compounded quarterly. Use Table 12-2 to find how much…

A: Using Table 12-2, we can find the present value factor for an annuity of $1 per period for 12…

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A: Payment = p = $1000Interest Rate = r = 10%

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Q: after 4 years is $60,000, what was the size of each payment?

A: The size of each payment is $3218.97

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A: Annuity is the series of equal cash payments over the period.