4. Using your present and future value tables, calculate the following: a. Compute the amount that a $40,000 investment today would accumulate to at 10% interest, compounded semiannually, by the end of 6 years. b. Tim wants to retire at the end of this year (2021). His life expectancy is 20 years from his retirement. Tim has come to you to learn how much he should deposit on December 31, 2021 to be able to withdraw $70,000 at the end of each year for the next 20 years, assuming the amount on deposit will earn 8% interest compounded annually. c. Jan established a savings account for her son’s college education by making annual deposits of $11,000 at the end of each of 6 years to a savings account paying 8%. What will be the balance of the account at the end of the sixth year?
4. Using your present and future value tables, calculate the following: a. Compute the amount that a $40,000 investment today would accumulate to at 10% interest, compounded semiannually, by the end of 6 years.
b. Tim wants to retire at the end of this year (2021). His life expectancy is 20 years from his retirement. Tim has come to you to learn how much he should deposit on December 31, 2021 to be able to withdraw $70,000 at the end of each year for the next 20 years, assuming the amount on deposit will earn 8% interest compounded annually.
c. Jan established a savings account for her son’s college education by making annual deposits of $11,000 at the end of each of 6 years to a savings account paying 8%. What will be the balance of the account at the end of the sixth year?
d. Jane wants to set aside funds to take an around the world cruise in four years. Jane expects that she will need $30,000 for her dream vacation. If she is able to earn 8% per annum on an investment, how much will she have to set aside today so that she will have sufficient funds available?
e. Josh has $153,948 to invest today. He wishes to accumulate $300,000 and can earn a rate of 10%. How many years will it take him?
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