A company is planning on spending $24,900 to upgrade their equipment in 4 time. How much must they deposit monthly into an account earning j12=3% in order to bave enough money for the new equipment? years Your Answer:

Q: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 5% interest. How…

A: The retirement amount after 25 years (FV) is $700,000. The period is 25 years. The rate of interest…

Q: Suppose you want to have $400,000 for retirement in 35 years. Your account earns 10% interest. How…

A: We can use the concept of time value of money. Here the monthly deposit is in the form of annuity…

Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 6% interest. How…

A: The future value of an annuity is the future worth of a series of cash flows at a certain rate of…

Q: You want to be able to withdraw $50,000 each year for 30 years. Your account earns 10% interest. a)…

A: Check the detailed answer belowExplanation:Part 1: Answer:a) $393,905.65b) $1,500,000c)…

Q: You have 45,589.25 in a brokerage and you to deposit an additional 5,000 at the end of every future…

A: Time value of money concept will be applied here. Money deposited in an account grows as the amount…

Q: Suppose you invest $160 a month for 5 years into an account earning 9% compounded monthly. After 5…

A: Part (a) Given information, Monthly deposit payment (PMT) = $160Deposit period (t) = 5 yearsMonthly…

Q: You would like to have $600,000 when you retire in 40 years. How much should you invest each quarter…

A: Here, To Find: Part a). Amount of deposit each quarter =? Part b). Total money deposited into the…

Q: you want to be able to withdraw $30000 each year for 25 years. your account earns 8% interest. How…

A: Given, Amount able to withdraw = $30,000 each year Time period = 25 years Interest rate = 8%

Q: You want to save up enough money to purchase a new computer, which costs $4,500. You currently have…

A: Here, Required Amount (FV) is $4,500 Current Amount in Account (PV) is $4,000 Interest Rate is 8%

Q: Want to be able to withdraw $50,000 each year for 30 years. Your account ea a) How much do you need…

A: Present value is the equivalent value today needed based on the time and interest rate of the money…

Q: A business sets up a sinking fund so they will have a $66,000.00 to pay for a replacement piece of…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: One year ago, the Jenkins Family Fun Center deposited $4,400 into an investment account for the…

A: Future value of amount includes the amount being deposited and interest amount account accumulated…

Q: A company needs to buy a building in 4 years, and must fund the down payment from its profits. The…

A: For availing a loan for an asset, a person is required to pay some amount as down payment. Down…

Q: In 3 years you are planning a round-the-world trip which will cost $70,000. What amount would you…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: A company plans to buy new equipment in 25 years. They will start by saving $1,370 at the end of…

A: Saving at the end of year = $ 1370 Annual growth rate = 3.5% Annual interest rate = 15.3% Period =…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: ou want to be able to withdraw $35,000 each year for 30 years. your account earns 6%  how much do…

A: An annuity is defined as the sum of recurring payments over a period of time at a certain date, at a…

Q: Today you are opening a savings account and depositing an initial $5,000 into it. You plan to…

A: Maturity Value is that amount which will be received at the end of certain period of time. It…

Q: You expect that you will need to replace your furnace in 4 years at a cost of $15,228. How much must…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: 1. You invested in an insurance polict that you will pay P3500 monthly for 20 years. The company…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: The Hunters are trying to save $8000 as the down payment on a new recreational vehicle. If they can…

A: Given: Future value = $8,000 Monthly deposit = $200 Interest rate = 4%

Q: You have decided to set aside a fixed amount every quarter in order to have $12,000 available for a…

A: The amount to be deposited every quarter can be calculated with the help of future value of annuity…

Q: You want to be able to withdraw $50,000 each year for 25 years. Your account earns 9% interest. a)…

A: An annuity is a payment series that provides its holder with a periodic amount in exchange for a…

Q: Suppose you want to have $700,000 for retirement in 30 years. Your account earns 10% interest. a)…

A: Fresent value is an estimate of the future cash flows ​​that may be received at a future date,…

Q: You invest $5 daily into an account earning 6% compounded daily. How much will be in the account…

A: FV stands for future value which is the concept that allocates the value to the asset grounded on…

Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 9% interest. a)…

A: Compound = Monthly = 12Future Value = fv = $800,000Time = t = 25 * 12 = 300Interest Rate = r = 9 /…

Q: A company plans to buy new equipment in 6 years. They will start by saving $3,091 at the end of this…

A: Saving at the end of year = $ 3091 Annual growth in saving = 14.9% Annual interest rate = 17.8%   To…

Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How…

A: An annuity is a series of equal payments made at regular intervals. It accumulates interest on a…

Q: You want to buy a new ski boat 2 years from now, and you plan to save $7,300 per year, beginning one…

A: Futures are an important financial concept that represents the value of an investment or asset at a…

Q: A corporation knows it will need to pay for a $1,200,000 roof in 20 years. It invests monthly in a…

A: We need to use future value of annuity due formula to calculate monthly payment. PMT = FVn(1+i)n…

Q: The owners of a condominium building wish to save enough money to replace the roof on their building…

A: Using excel PMT function

Q: Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6…

A: Time Value of Money states that a dollar is worth more today than anytime in the future because they…

Q: A new roof will cost $12000 . It will be invested in 19 years . If the interest rate is 7% per year…

A: Amount to be invested each year = A r = 7% Accumulated amount = $12000 n = 19 years

Q: You want to be able to withdraw $25,000 each year for 30 years. Your account earns 8% interest.…

A: Present value of annuity.PV = A * wherePV = Present value of annuity.A = periodic paymentsr =…

Q: You are saving for a new boat. You place $25,000 in an investment account today that earns 6%…

A: Lets understand the basics.For determining compounded amount for amount invested after some period…

Q: In an effort to save money for early retirement an environmental engineering collegue plans to…

A: This problem belongs to future value of annuity due. since payment is at the start of the month.

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,300 per year - with the…

A: Amount required = $10,000 Yearly Payment = $1,300 rate of interest = 13% no of years = ?

Q: You have just deposited $12,000 into an account that promises to pay you an annual interest rate of…

A: Calculate the future value at the end of the year 8 as follows: Future value = Present…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.