a business man needs an additional capital of 100000 for 10 years. What is the annual deposit and order to meet the required capital ? assume interest at 5 %

Q: You have $6,000 to invest in a 5-year certificate of deposit (CD) that pays 10% interest compounded…

A: A financial instrument in which an individual or company investment a lump-sum amount for a…

Q: You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future…

A: Following details are given in the question: Present value (Investment today) = $50000 time period =…

Q: Your friend plans to invest $1,000 per month into an account expected to have an effective annual…

A: Here, EAR is 6.2% Monthly payment (PMT) is $1,000 Required Amount (FV) is $100,000

Q: You have discovered an investment opportunity that earns a 3% rate of interest compounded…

A: Present value is the equivalent value of future money today that is going to be received in the…

Q: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…

A: To find the present value of the investment, we will first define where the payments are made. We…

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first…

A: Initial cost (I) = $15000 CF1 = $1100 forever starting after 2 years CF2 = $500 forever every 6…

Q: If you invest $18,000 at 6% interest, how much will you have in 15 years? Use Appendix A to…

A: Future value is a value of an investment or asset on a specific date in the future based on its…

Q: If the cost of capital is 12%, what is the present value of a perpetuity that pays $11,000 at the…

A: The present value of perpetuity can be calculated as ratio of cash flows and the discount rate

Q: The company wanted to receive P500,000 6 years from now. Considering an interest of 14% compounded…

A: Future value required  (FV) = P 500,000 Period = 6 Years Annual interest rate = 14% Semi annual…

Q: d it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the…

A: The given problem can be solved using using RATE and EFFECT function in excel. RATE function…

Q: A new engineer wants to save up P1,000,000. He will contribute P5,000 annually to an investment…

A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an…

Q: unt balance of $10,000 after 5 years, what amount do you need to invest initially into an account…

A: More is compounding than more is the effective interest rate and hence more will be the future value…

Q: Suppose Karlem invested P20,000 for five years with simple annual interest of 10%. What is the…

A: Simple interest is a method under which interest is calculated on a principal amount. It calculates…

Q: What is the final value of $20, 000 if left in an account that pays 10% interest per annum for 30…

A: The final amount after 20 years will be the future value of the initial deposit.

Q: An investor put his money in an investment earning 10 1/2% simple interest rate per annum. If his…

A: simple interest formula: A=P×1+RT given, p 12.30 MILLION R=10.5% T=15 / 12 YEARS

Q: Suppose that a man lends $1600 for 4.3 years at 12% per year simple interest. At the end of the 4.3…

A: Simple Interest  Simple interest refers to the amount of interest that is calculated on the…

Q: If you were to make a deposit of $5,000 today in an investment account expected to pay 5% pa.…

A: The question is related to Time Value of money.When interest is calculated on total of previously…

Q: What is the cash value of a property with a mortgage that requires payments of $1200 per month for…

A: To determine : Cash value of property  Monthly Payment = pmt = $1200 Term =  25 years Number of…

Q: You invest $10,000 at the end of each 5 years. If i=4%, What is the value of the account at EOY 5?…

A: At the end of year 5, the value of the account where $10,000 is invested every 5 years at an…

Q: How much would you have to pay each year to pay off a 5%, 7-year loan of $300,000?

A: In the given question we require to calculate the annual payment to pay off the loan of $300000 in 7…

Q: what annual interest rate must you get if you need $7000 in 4 years and have $5000 to invest now

A: Invest = $ 5000 Future value = $ 7000 Period = 4  Years

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…

A: The question is based on the concept of time value.

Q: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

Q: How much will $200,000 deposited in an investment account earning an annual interest rate of 8½% be…

A: Given information: Present value $200,000 Annual interest rate is 8.5% Number of years is 1

Q: If you put $200,000 into your investment account now for 10 year at 5% annual interest, what is the…

A: Simple interest and compound interest are two different methods used to calculate the interest on a…

Q: What is the present value of an investment that promises to pay you $ 1, 000 in five years if you…

A: Here, The present value is PV. The future value is FV. The maturity is n. The interest rate is r.

Q: If you invest $10,000 at an interest rate of 8.00% (annual rate) compounded quarterly, how much…

A: Given: Investment amount = $10000 Rate = 8.00% compounded quarterly To compute the amount of…

Q: If you invest a lump-sum amount of P25,000 at an interest rate of 12%, compounded annually, how much…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: what amount will accumulate if we deposit 8500 at the beginning of each year for the next 10 years…

A: Solution Given Deposit at the beginning of each year 8500 Number of period 10 years…

Q: How much must I start investing now, per month, to have $1M in 25 years? The bank pays an APR of…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10…

A: Annual deposits (PMT) are $10,000. The rate of interest (Rate) is 8%. The maturity (Nper) is 10…

Q: 2. You deposit P25,000 annually for 6 years on an investment that has a rate of return of 5.2% per…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Assuming an annual rate of return of 9.5% and depositing $3,000 at the end of every 6 months into…

A:

Q: How much should be invested each year for 10 years to provide you with $8000 per year for the next…

A: Present value includes the value without interest rate and future value includes the value with…

Q: Goldberg planned to build a P1,500,000-house after 2 years. How much should be deposited in a…

A: Amount To be deposited now is Present value = Future Value/(1 + Interest rate)n Where , Interest…