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- 1. Caroline wants to earn $500,000 at the end of eight years. How much must she deposit today to accomplish such goal, if the rate of interest is 8% compounded annually? 2. Suppose you make 20 annual payments of $2,000 each into an account that pays 5% interest. The first deposit will be made 1 year from today. How much money can be withdrawn from the account immediately after the 20th deposit?1.Your parents will retire in 21 years. They currently have $210,000 saved, and they think they will need $2,100,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. 2. If you deposit money today in an account that pays 14% annual interest, how long will it take to double your money? Round your answer to two decimal places. 3.An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $550 at the end of Year 6. If other investments of equal risk earn 12% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.1. What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years from an account earning 14 percent. 2. If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent.
- A mother wishes to have Php800,000 eight years from today for her son’s graduation. How much should she deposit monthly in a bank if it pays interest at 14%, m = 12?You have $1,000 today in your savings account. How long must you wait for your savings to be worth $2,000 if you are earning 0.25 percent interest, compounded annually? years (XXX.XX years) You want to have $40,000 for a down payment on a house 4 years from now. If you can earn 3.95 percent, compounded annually on your savings, how much do you need to deposit today to reach your goal? ($xxxx.xx)3. Kyle needs to have 39,000,000 for retirement in 10 years. His account earns 3%. a. how much would he need to deposit in the account each quarter? b. how much total money will he put into the account? c. How much total interest will he earn?
- a. You are planning for retirement, and would like to have $1,000,000 in the bank when you turn 65. (Assume that you just barely turned 25). How much should you deposit each month into an account earning 6% nominal interest per year, compounded monthly, to reach your goal? b. How much would you have to deposit each month, if the account earned 12% nominal interest per year, compounded monthly?Please help me answer the following time value of money question. Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it take before her balance is $125,000?15) Erika opened a savings account today and she immediately put $10,000 into it. She plans to contribute another $20,000 one year from now, and $50,000 two years from now. The savings account pays a 6 percent annual interest rate. If she makes no other deposits or withdrawals, how much will she have in the account 10 years from today?
- If Martha puts P1,000 in the bank today at 6%, how much will she have in three years? " Your answerAssume that you need $1,000 four years from today. Your bank compoundsinterest at an 8 percent annual rate. a.How much must you deposit one year from today to have a balance of$1,000 in your account four years from today? b.If you want to make equal payments each year, how large must each of thefour payments be if the first deposit is made one year from today? c.If your father were to offer either to make the payments calculated in part(b) ($221.92) or to give you a lump sum of $750 in one year, which wouldyou choose? d.If you have only $750 in one year, what interest rate, compounded annually,would you have to earn to have the necessary $1,000 four years from today? e.Suppose you can deposit only $186.29 each for the next four years, begin-ning in one year, but you still need $1,000 in four years. At what interestrate, with annual compounding, must you invest to achieve your goal? f. To help you reach your $1000 goal, your father offers to give you $400 in one year. You will get…2.63. Louis Trichardt would like to save $15,000 to use as a down payment on a house. He will deposit $500 a month in a savings account that pays interest at the rate of 6% per year, compounded monthly. How long will it take him to accomplish his objective?