3. You just inherited P1,000,000. While you plan to squander some of it away, how much should you deposit in an account earning 5% interest per year if you would like to have P1,000,000 in the account in 10 years?

Q: Would you rather have $1,000 today or $1,250 in 3 years at a 8% annual interest rate compounded…

A: Future value can be calculated by using the following formula.

Q: You are going to get %10,000,000 in 45 years' time. What is the value of that money today assuming…

A: Present value can be calculated by using the following formula.

Q: Suppose that you make a series of annual deposits into a bank account that pays 8% interest. The…

A: here we calculate how much would  have immediately after the fifth deposit  by following method…

Q: How much should you invest each month in order to have $700,000 if your rate of return is 3.6%…

A: A higher discount rate indicates a lower present value of the annuity while a lower discount rate…

Q: Use the compound interest formulas A=P [1+r/n] and A=Pe^rt to solve the problem given. Round answers…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: If you desire to withdraw the given amounts over the next five years from a savings account that…

A: The sum of cash or cash-equivalent which the company gets or gives out by the way of payment(s) to…

Q: Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made…

A: Future value can be calculated as follows. Monthly interest rate (i) is 0.0033. Time period is 360.…

Q: 3. What is the future value in year 10 of the series described in Problem 2?

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: What is the yield to maturity on a simple loan of $35,000 that requires a repayment of $40,000 in 3…

A: Yield to maturity refers to the total interest payment that will have to paid at the time of the…

Q: Roger quit his job now he spends all his time writing poems and reading them to his ex girlfriend.…

A: Structural unemployment: It is a type of compulsory joblessness brought about by a jumble between…

Q: A series of equal quarterly payments of $2,000 for 10 years is equivalent to what future lump-sum…

A: Quarterly payment (A)=$2000 Total number of quarters for which the payment is made =10×4=40…

Q: how much interest is included in the future value of an ordinary simple annuity of $750 paid every…

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

Q: How much is accumulated over two years in each of the following savings plans? a.$40at the end of…

A: Given data for the part (a) of the question is as below, Deposited amount at end of the month:…

Q: Suppose that $4000 is placed in a bank account at the end of each quarter over the next 10 years.…

A: the proportion of a loan that is charged as interest to the borrower typically expressed as an…

Q: Kelsey purchases a retirement annuity that will pay her $1,500 at the end of every six months for…

A: In retirement, an annuity is a kind of assured income that the individual is presented with as a…