A 45-year-old person wants to accumulate $750,000 by age 70. How much will she need to save each month, starting one month from now, if the interest rate is 0.5% per month?
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A: Annuity amount = Futur value of annuity amount / {[(1+r)^n-1] /r}
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A: The monthly deposit is the amount that is paid every month until the maturity of the period.
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A: Here, To Find: Monthly deposits =?
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A: Question is based on the concept of Annuity
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A: Following details are given in the question: Investment today (Present Value) = $30000 Value of…
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A: Given information: Monthly saving $400 Interest rate 8% Number of years is 36
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A: in this problem we have to calculate quarterly interest rate and from that we can get present value.
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A: The future value of the annuity is the total value of all the payments which is occurred regularly…
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A: Monthly saving = P 10,000 Future value (FV) = P 250,000 Annual interest rate = 4.36% Monthly…
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Q: Suppose you want to have $500,000 for retirement in 20 years. Your account earns 8% interest. How…
A: Future value of each month payment (FV) = $500,000 Number of years to retirement = 20 Number of…
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A: Given, Amount required each year after requirement us $35000. term of payment is 15 years Rate of…
Q: How much would you need to deposit in the account each month?
A: Annuity Payments: These are payments of equal intervals made. Examples of annuity payments include…
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A: Annuity refers to the payment series of same nominal value which are paid or received at a same…
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A: Dear student we need to use excel for calculation of monthly deposit(PMT) by using PMT functions.
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A: Given:
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A: a. GIVEN, future value (FVA) = $650,000 n = 40 m =4 rate of interest (r) = 3.6% applying the formula…
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A: RATE (10%/12) 0.833% TIME PERIOD (30 years * 12 months) 360 PRESENT VALUE $0 FUTURE VALUE…
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A: Future Value=Present Value(1+i)^12 52317=26000(1+i)^12 (2.0122)^1/12=1+i i=1.06-1 i=6%
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A: Present Value of annuity = P* [{(1+r)^n-1}/r] Where, Present Value of annuity = 350000 P = Annuity…
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A: The present value of a cash flow is the current worth of a cash flow at a certain rate of interest…
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A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
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A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 10% interest. How…
A: Future value (FV) = $ 700,000 Period = 20 Years Number of monthly payments (n) = 20*12 = 240…
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- Use the present value and future value tables to answer the following questions. Time Value of Money - Principles of Accounting, Volume 2: Managerial Accounting | OpenStax A. If you would like to accumulate $2,400 over the next 5 years when the interest rate is 15%, how much do you need to deposit in the account? $_____ B. If you place $6,200 in a savings account, how much will you have at the end of 6 years with a 12% interest rate? $_____ C. You invest $7,000 per year for 11 years at 12% interest, how much will you have at the end of 11 years? $_____ D. You win the lottery and can either receive $760,000 as a lump sum or $60,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why? _____Solve the following problems. You must show all your solutions -Draw the cash flow diagram for each problem -use interest rate with five decimal places. -Box your final answer and upload the picture of your complete solution.TIME VALUE OF MONEY ANALYSIS You have applied for a job with a local bank. As part of its evaluation process, you must take an examination on time value of money analysis covering the following questions: a. Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2:01an ordinary annuity of $100 per year for 3 years; and (3) an uneven cas Graphical user interface, text, application $50 at the end of Years 0 through 3. b. (1) What's the future value of $ al compounding? (2) What's the prosent value of $ Description automatically generated strate is 10%, annual compounding? C. d. e. What annual interest rate would cause $100 to grow to $125.97 in 3 years? If a company's sales are growing at a rate of 20% annually, how long will it take sales to double? What's the difference between an ordinary annuity and an annuity due? What type of annuity is shown here? How would you change it to the other type of annuity? 1 0 ㅏ 2 + $100 0 3 1 $100 $100 f. (1) What is the future value of a…
- Create an Excel spreadsheet that calculates the internal rate of return for the following set of cashflows: Period 012345 Cashflow $1123.01 $100 $100 $100 $100 $ 1,100 Note your spreadsheet should calculate the present value of each of the individual cashflows as well as the sum based on your IRR input. Once you have completed your IRR calculation check your work with the Excel IRR functionWhich of the following machine to be selected based on The average rate of return. with clear steps Sr. Machine A Machine B No. RO. RO. Year Cash outflow/ Cash outflow/ Cash inflow Cash inflow 0 (50,000.00) (50,000.00) 1 6,000.00 15,000.00 2 7,200.00 17,500.00 3 7,350.00 18,000.00 4 8,200.00 5,000.00 5 9,820.00 - 6 10,200.00 - 7 12,500.00 - 61,270.00 55,500.00Solve for each problems. Show your solution legible and neatly. Write the question, the given(also what is the given?), what to find and a cash flow diagram. Answers should be in 2 decimal places, unless stated otherwise. Solution should be hand-written. Question can be hand-written or type-written. Answer should be in 2 decimal places. A sum of P5,000 was invested now and left for 6 years, at which this time the principal is withdrawn. The interest that has accrued is left for another 6 years. If the effective annual interest rate is 8%, what will be the withdrawal amount at the end of the 12th year?
- Q) a. Determine the optimal strategy for cash management for the person who earns $1600 per month, can earn 0.5 percent interest per month in a saving account, and has a transaction cost of $1. b. What is the individual’s average money holding? c. Suppose income rises to $1800. By what percentage does the person’s demand for money rise?ANSWER = CASH FLOW IS $500 Please show how to get the answer.THIS IS A SCENARIO QUESTION NOT A WRITING ASSIGNMENT. ANSWER THIS QUESTION WITH THE MIND OF A FINANCIAL ADVISOR OR KNOWLEDGE. First, if I were to offer you $5,000 today or $10,000 10 years from now, which would you take based on the time value of money? Or would you need some additional information in order to answer that question? If so, what information would you like to have? Second, time value of money is based on the ability to grow money - to create wealth through investing. If I made you the above offer, in addition to considering the time value of money, what other factors might influence your decision to take cash now or to wait to receive cash in the future?
- Part B: Using Time line Method and Equation, calculate FV or PV for the following questions and put all in the format uploaded in the Moodle: (Put any number you want in the empty places and then calculate). 1) Mr. Ali deposited OMR compounded. He wanted to know how much money he will have at the end of years Calculate the amount. today into a security that pays him .....% interest 2) How much money has to be invested today in a security that promises to pay Omani Riyals at the end of compounded per annum. years. Assume that you can earn % interestDirection: Solve what is being asked and show your complete and neat solution. (ROUND OF PV FACTORS TO 4 DECIMAL PLACES, ROUND OF FINAL ANSWER TO TWO DECIMAL PLACES. IN MCQs CHOOSE THE BEST ANSWER) D.) The frequency of spending or the rate or turnover of money a. Demand for money b. Velocity of money c. Transaction demand d. Speculative demand E.) Is a contractual financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. a. Annuity b. Demand c. Speculation d. InvestmentYou plan to borrow $1,000 from a bank. In exchange for $1,000 today, you promise to pay $1,130 in one year What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective? What does the cash flow timeline look like from your perspective? (Select the best choice below) O A. Period 0 1 CHE