4. What is the present value (PV) of a 12-year lease arrangement with an interest rate of 7.5% that requires annual payments of $4,250 per year with the first payment being due now? 5. A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now by contributing $150 per month in a 401(k) plan. The goal is to earn 10% annually on the monthly contribution. Will they have the $200,000 at the end of the 25 years? Insert your answer. Insert your answer.

4. What is the present value (PV) of a 12-year lease arrangement with an interest rate of 7.5% that requires annual payments of $4,250 per year with the first payment being due now? 5. A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now by contributing $150 per month in a 401(k) plan. The goal is to earn 10% annually on the monthly contribution. Will they have the $200,000 at the end of the 25 years? Insert your answer. Insert your answer.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

2. (From section 6.2) You want to be able to withdraw $50,100 from your account each year for 20 years after you retire. You expect to retire in 35 years. If your investment account earns 5.5% interest, how much will you need to deposit into the account at the end of each year until you reach retirement to achieve your retirement goals? (a) The first part is finding how much we need to have in the account by the time we retire. Which formula will you use first? Circle one. Annuity Payout-Annuity (b) What are the following variables that we will need for the formula? PMT = n = t = r = A or Po = (c) Write the formula you will use with the numbers plugged in below. (d) Solve using your calculator or technology and round to two decimal places. Work is not required here. Write the answer here and state which variable you solved for. (e) Using your own words, describe what you found by solving the equation in terms of the word problem given.
5. My pension plan is an annuity with a guaranteed return of 5% per year. (Assume compounding at same intervals as withdrawals or deposits) a. How much will I need in my account at retirement if I wish to be paid $12000 per quarter for 25 years? b. If I plan to work for 45 years before retiring, how much money would I need to deposit into my retirement account monthly to save the amount necessary for the payments in part a. (assume the same 5% rate)
How do you solve this on TI 84 Future Value of Multiple Annuities Assume that you contribute $110 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $210 per month for another 20 years. Given a 6.5 percent interest rate, what is the value of your retirement plan after 40 years?
To supplement your retirement, you estimate that you need to accumulate $290,000 exactly 41 years from today. You plan to make equal, end-of-year deposits into an account paying 8% annual interest. a. How large must the annual deposits be to create the $290,000 fund by the end of 41 years? b. If you can afford to deposit only $800 per year into the account, how much will you have accumulated in 41 years?
2.
After retirement, you expect to live for 25 years. You would like to have $91,000 in income each year. How much should you have saved in your retirement account to receive this income if the annual interest rate is 9 percent per year? (Assume that the payments start one year after your retirement) Multiple Choice $1,472.33173 $893,85474 $2,275,000.00 $101,089.74
With a 0.07 interest rate, approximately how much money must be invested today in order to withdraw $ 9,827 per year at the end of each year for 11 years? Will upvote thankyou :)
How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $80,000 per year forever, beginning 31 years from now? Assume the account earns interest at 15% per year. What is the answer, and how can I get it?
C) What is the present value of $7,500 per year, at a discount rate of 8.5 percent, if the first payment is received 10 years from now and the last payment is received 25 years from now?You have signed up for your 401k and will deposit $750 into your 401k when you are paid at the end of each month. If you earn a compound annual rate of return of 6%, how much will you have in 15 years?What would your monthly car payment be if you financed a $35,000 car for 3 years at a rate of 6%?The appropriate discount rate for the following cash flows is 12 percent compounded quarterly. What is the present value of the cash flows? Year 1 CF=700, Year 2 CF=600, Year 3 CF=0, Year 4 CF=1000
(e) You borrow an amount and agree to pay it off with one lump sum payment of $40,000 in 6 years at 10%. How much will you borrow?
(Use Calulator or Formula Approach) You are offered the opportunity to put some money away for retirement. You will receive five annual payments of $25,000 each beginning in 40 years. How much would you be willing to invest today if you desire an interest rate of 12%?
13. You wish to retire in 35 years' time when you get to 65 years old. You will require a monthly pension of R65 000 per month at the time. The monthly pension will be paid over a period of 25 years after retirement. You will contribute to a retirement fund which is expected to eam a return of 1.25% per month (15% per year) before and after retirement, interest compounded monthly. Assume you need to have accumulated an amount of R5 000 000 in 35 years' time in order to generate the required monthly pension. What should your monthly instalments be, if you assume you make equal instalments over the next 35 years? A) R340.66 B) R114 755.57 C) R140 343.18 D) None of the above