Please correct answer and don't used hand raiting 2. Daniel intends to travel overseas three years from now. He opens a savings account which offersinterest at a rate of 14.5% per annum compounded monthly. If he wishes to have R 175 000 in theaccount just before his trip, what must be his monthly contributions?A. R 3909.09B. R 4249.82C. R 3627.04D. R 4183.67

The problem involves future value of annuity. Future value (FV) is the value of a current asset at…

Answered: 2. Daniel intends to travel overseas…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

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Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
Lee wants to know how much he will have available to spend on his trip to Costa Rica in 2 years if he deposits $3,250 today in his Tax-Free Savings Account (TFSA) at an interest rate of 6% compounded quarterly? A $3,661.10 В $3,879.90 C $3,578.02 $4,210.90 E $3,483.32
Your father promise to give you RM150 at the end of each month for four years while you attend college. At a discount rate of 3 percent, what are these payments worth to you on the day you enter college? Select one: A. RM6,776.80 B. RM6,793.74 C. RM6,201.16 D. RM6,539.14
2. Manuel is preparing for an income fund for his retirement. He wants to receive ₱ 15 500 at the beginning of each month for the next 25 years. The income fund pays 10.5% per year compounded monthly. How much must Manuel deposit now to pay for the annuity?
Q2.3: Abigail set up a savings fund for his son's education so that he would be able to withdraw $1,775 at the beginning of every month for the next 6 years. The fund earns 5.16% compounded quarterly. a. What amount should he deposit today to allow for the $1,775 periodic withdrawals? b. How much interest would he earn in this investment? Kindly keep all the decimals for all the preocedures, DO NOT ROUND
8. An amount of P 250,000 is deposited now into a savings account that earns 8% per year. This amount will take care for the yearly allotment of a grandmother until shedies. The first allotment will be one year after the deposit is made. How much can thegrandmother withdraw every year?
Scott wants to accumulate $2,500 over a period of 7 years so that a cash payment can be made for roof maintenance on his summer cottage. To have this amount when it is needed, he will make annual deposits at theend of each year into a savings account that earns 8% annual interest per year. How much must each annual deposit be? a. $244 b. $259 c. $280 d. $357.
Solve the problem on an annuity with a solution.
How much money does Suzie need to have in her retirement savings account today if she wishes to withdraw $25,000 a year for 3 years? She expects to earn an average rate of return of 13 percent. A. $59,028.81 OB. $65,419.81 OC. $71,533.33 OD. $85,160.98 E. $87,391.34
How long would it take for Nico to save an adequate amount for retirement if he deposits R40,000 per year into an account beginning one year from today that pays 12 percent per year if he wishes to have a total of R1,000,000 at retirement?
Jeni has decided that she needs to start saving for her retirement. She can afford $100 a month deducted automatically from her paycheck. She deposits it into an account that earns 4.5% interest compounded monthly. How much will she have in her account when she retires 42 years later? A. $ 14,922.70 B.$ 50,400.00 C. $132,213.00 D. $149,226.96
Imelda opens a savings account with $12,000, which pays an annual interest rate of 7.8%. If she reinvests the generated interest every month and also deposits $2,300 each month, how much will be in the account after 2 years? The interest is reinvested on the same day as the $2,300 deposit. Otions: 69177.89 71052.15 73548.61 70524.79

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