5. What amount should be invested now at 6% per year, compounded annually, to generate a retirement income of $35 000 per ycar for 15 years? a. $339 929 b. $504 582 c. $814 659 d. $543 779
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A: Using excel PV function
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A: Future value is the value of a current asset at a future date based on an assumed rate of growth…
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A: Future value = $200,000 Interest = 3% Time =25 years So, amount invested each year = Using excel PMT…
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A: Time value of money :— According to this concept, value of money in present day is greater than the…
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A: Information Provided: Principal value = $5000 Interest rate = 8% compounded annually Years = 6
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A: Compound interest is calculated by multiplying the original loan amount, or the principle, by one…
Q: If you invest $40,000 at 4% interest compounded annualy, approximately how much money will be in the…
A: PV=$40,000r=0.04n=6FV=?
Q: 16. Calculate the future value of $8,000 earning 9% interest, compounded quarterly, for 11 years.…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: A perpetual annuity is a never-ending series of equal cash flows where the investment is done today…
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A: The future worth of the investment is the amount which will be receiving in the following years that…
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A: A perpetuity is a security that pays for an infinite amount of time.The present value of a…
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A: Present value=Future value / [ 1 + (Interest rate x Number of years)]
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A: Present Value is the current value of the future sum of money at the specific rate of return.
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A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…
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A: Future value required (FV) = $ 15000 Annual interest rate = 4% Quarterly interest rate (R) = 4%/4 =…
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A: Future value can be referred to as the value of an underlying asset or security at a future date.…
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A: Present value (PV) = $1 Interest rate (r) = 13.7% Period (n) = 75
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A: Perpetuity is the payment forever and today value is the equivalent deposit required today that will…
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A: Given: Future value (FV) = $300,000 Rate of interest (r) = 9% = 0.09 Time period (n) = 5
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A: Formula: Future value = Present value x ( 1 + r )N R = Rate of interest N = Number of years
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- If $650 000 is saved for retirement, what rate of interest, compounded monthly, will provide payments of $3750 every month for the next 25 years? Select one: O a. 14.606797% O b. 0.811327% O c. 4.888702% O d. 4.867963%What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $4,800? a. $20.28 b. $292.96 c. $312.00 d. $156.00 e. $738.46find the final amount in this retirement account, in which the rate of return on the account and the regular contribution change over time 1500$ per quarter invested at 7.9% compound quarterly , for 20 years, then 1000$ per quarter invested at 6.8% compund quarterly for 10 years. answer is about 620,187$
- A perpetuity of $5,000 per year beginning today, offers a 10% return. What is its present value? A. $33,333.33 B. $55,000.00 C. $38,333.33 O D. $65,217.39If $875 000 is saved for retirement, what rate of interest, compounded semi-annually, will provide payments of $20 000 at the end of every 6 months for the next 25 years? Select one: O a. 1073568% O b. 4.396189% O c. 2.147135% O d. 1.113415%What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year? Use a nominal rate of 8.00%. O $10,625 O $10,952 O $10,241 O $9,133 O $9,004
- i need the answer quickly17. What is the present value of a $5,500 perpetuity starting in a year's time, then growing by 4% per annum with a discount rate is 14%? A $55,000 B $50,000 C $37,500 D $44,650How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the annual rate of interest is 5%? A $1,200 B $25,200 C $120,000 D $480,000
- How much more is a perpetuity of $8,000 worth than an annuity of the same amount for10 years? Assume an interest rate of 7% and cash flows at the end of each year.a. $99,212b. $34,740c. $58,097d. $1,486.44What's the future value of $1,225 after 5 years if the appropriate interest rate is 6%, compounded monthly? a. $1,900.19 b. $1,652.34 c. $1,751.48 d. $1,371.44 e. $1,272.30What is the total future value ten years from now of $400 received in 1 year, $350 received in 2 years and $900 received in 8 years if the interest rate is 5% per year? O a $2,047.15 O b. $2,100.11 Oc $2,299.15 Od. $2,129.89 O e. $2.254.44