a) How much will you have in the account in 35 years? LA b) How much total money will you put into the account? LA c) How much total interest will you earn? tA

Q: Suppose you are 40 years old. Your only debt is a mortgage = $450,000. The current value of your…

A: Mortgage refers to the loan taken by individual for purchasing tangible fixed asset that is…

Q: If you are willing to loan someone $100 and expect to be paid back $200 and earn 12% on your…

A: Given Loan amount is $100 Amount to be paid back is $200 Rate of return is 12%

Q: Suppose that at age 25, you decide to save for retirement by depositing $95 at the end of every…

A: IRA is an individual retirement plan and contributions made are tax free and this is quite necessary…

Q: You have the choice of two equally risk annuities, each paying $5,000 per year for 8 years. One is…

A: Annuities are series of constant cash flows.   Annuity due are those annuities in which cash flow…

Q: Suppose the interest rate is 4.3%. a. Having $450 today is equivalent to having what amount in one…

A: The money's present value is its current worth compared to some of its potential future value after…

Q: f you would like to retire as a millionaire. If you make a uniform deposit of $19,000 monthly at an…

A: Millionaire means that you want one million in retirement and the future value of the deposit…

Q: ou just borrowed $490,000 for a mortgage on your new home. The mortgage has a 30​-year term with…

A: Mortgage loans make home buying home easy because paid by easy monthly payments that carry payment…

Q: 6: You invest $10000 today for 9 years at 6% interest. What is the total amount of interest on…

A: Interest on investment refers to the return or profit earned from investing a certain amount of…

Q: How much money would you need to deposit every year for 40 years to become a millionaire if the…

A: Given, The amount required in 40 years is 1,000,000 Interest rate 12%

Q: Suppose you deposit $1,098.00 into an account 5.00 years from today. Exactly 14.00 years from today…

A: Following formula is used to compute account's interest rate account's interest rate = -1where,n =…

Q: Suppose you deposited $39,000 in a bank account that pays 5.25% WI daily compounding based on a…

A: Future value is the amount initially deposited and amount of comounding interest accumulated over…

Q: How much money should a young married couple invest now at a 7% annual rate if they want to have…

A: Future value (FV) or (A) = $ 100000 Annual Rate of Investment (i) = 7 %  No. of Years (n) = 30 Years…

Q: What is the difference between simple interest and compound interest? Suppose you have $500 to…

A: Difference between Simple Interest and Compound interest Simple Interest is the interest that one…

Q: Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in…

A: Interest per year can be calculated as: = Principal * Rate * Time

Q: How many years would it take save an adequate amount for retirement if he deposits $2,100 per month…

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

Q: Do I take the monthly payment and add the interest then divide it to find the total payments? And do…

A: The monthly payments amount of $828.85 that has been computed here will be constant over the next 30…

Q: Assume Sheryl Jenkins wants to accumulate $ 12,485.35 in two years. She currently has $ 10,809.59 to…

A: Future Value is that amount which is received by the investor in future. it includes the interest…

Q: What's the rate of return you would earn if you paid $3,480 for a perpetuity that pays $70 per year?…

A: The objective of this question is to calculate the rate of return on a perpetuity. A perpetuity is…

Q: PART C.) In planning for your retirement, you expect to save $5,000 in year 1, $6,000 in year 2, and…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: 3.) Mark decides to invest, if $300 is earned in three months on her investment of $12000 what is…

A: An interest rate is used to indicates how much  to the borrow the money costs. Therefore, if the…

Q: 1) Gabriella invests $4,114 in a retirement account with a fixed annual interest rate of 4.87%…

A: Continuous compound interest rate is the interest that is calculated on the principal amount as well…

Q: 6) You started a simple interest savings account with $6,000. In 41 years, the account grew to…

A: Principal = $6000 Future value = $17,700 Interest amount = $17700-$6000 = $11700 Year =41

Q: After how many months will an annuity earning 2.4% annually be worth $500 if $25 is deposited…

A: Interest Rate = 2.4% Annually Rate = 2.4%/12 = 0.2% Future Value (FV) = $500 Monthly Deposit (PMT) =…

Q: Suppose you deposit $1,181.00 into an account 5.00 years from today. Exactly 18.00 years from today…

A: Amount Deposited  5 years from today = $1,181Worth of Account 18 years from today = $1,800Time…

Q: lan to start your own business and are investing today to grow some seed money.  You have $16917 to…

A: Future value of money is the amount today that is deposited and amount of interest accumulated over…

Q: You just turned 20 years old and want to retire when you turn 65. You plan to put $4,900 every year…

A: FV represents the total value or amount of an investment or account at a specific future point in…

Q: Chris Seals has just given an insurance company $62,525. In return, she will receive an annuity of…

A: Investment amount (PV)=$62,525 Annuity amount (PMT)=$7,458 Time period (N)=12 years Future value=$0…

Q: Suppose the interest rate is 4.4%. a. Having $550 today is equivalent to having what amount in one…

A: a. Future Value:Having $550 today is equivalent to having $574.20 in one year at a 4.4% interest…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.