A student needs $6000 every six months to pay living expenses while at college. It will take him 8 years to complete his degree. Find the (a) lump sum that must be deposited to meet this need and (b) the interest earned assuming 5% per year, compounded semiannually. Click here to view page 1 of the present value of an annuity table. Click here to view page 2 of the present value of an annuity table. (a) The lump sum is approximately $ (Round to the nearest cent as needed.)

Q: Future Value of an Annuity Find the future value of these ordinary annuities.  Compunding occurs…

A: Future value of annuity = P x ((1+i)^n - 1)/i Annual Payment = $500Number of Payments = 8Interest…

Q: A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years.…

A: Using excel PV function

Q: How much money must be deposited into an account paying interest at 5% compounded annually in order…

A: Given, Rate = 5% Amount =$2000

Q: that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in…

A: The time value of money highlights the idea that money invested now will have a higher value than…

Q: Suppose you invest in an annuity that pays 6% interest, compounded annually. You contribute $4,500…

A: Given information: Annuity payment is $4,500 Interest rate is 6% compounded annually Number of years…

Q: You have just won the lottery and took a lump sum payout. After talking with a financial adviser you…

A: Present value of $16,000: Present value: $376,205.407024

Q: Suppose that ​$ 2,500 is set aside each year and invested in a savings account that pays ​8%…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent…

A: Interest received at the end of each year will result in the compounding effect on the deposit at…

Q: For a student loan of $20,700 at 2.75% for 20 years, complete the following. (a) Calculate the…

A: Loan amount = $20,700Interest rate = 2.75%Number of years = 20 years

Q: For the next 7 years, you expect to receive equal payments at the beginning of each year. Today, you…

A:

Q: If 5 deposits of $600 each are made into an account at the end of years 9, 10, 11, 12, and 13, what…

A: Deposit in year 9,10,11,12 and 13 = $ 600 Future value period = Year 25 Annual interest rate = 12%

Q: A perpetuity will pay $3000 per year starting seven years after the perpetuity is purchased what is…

A: Given: Amount = $3,000 Interest rate = 8% years = 7

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4 years. If an…

A: Given: Payment = $50,000 Years = 4(1/2) or 4.5 years Interest rate = 6.32%

Q: Your friend Anne is planning to invest $700 each year for four years and will earn a rate of 6…

A: Given information, Annuity Amount = $700 Time Period = 4 years  Interest rate per year = 6%

Q: . .. Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4 1/2 years. If…

A: Annuity is the regular payment to be made for specific number of years. There are two types of…

Q: Your friend Anne is planning to invest $500 each year for five years and will earn a rate of 5.5…

A: According to the time value of money, the money available in the present is worth more than the same…

Q: How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter…

A: given information   perpetuity that pays at the end of every quarter = $2000 interest rate = 2.5% =…

Q: (Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already…

A: Semi annual payment=PMT=$900Semi annual rate=r=7/2=3.5%Semi annual period=n=35 x 2=70

Q: d the present value of a 4-year $60 annuity when the stated rate is 6%, compounded monthly. Make…

A: Present value of annuity is equivalent value of today considering the the time and interest of the…

Q: To save for graduate​ school, a student invests ​$1470 semiannually in an ordinary annuity with 3%…

A: Annuity is the series of equal cash payments over the period.