Find the final amount (rounded to the nearest dollar) in this retirement account, in which the rate of return on theaccount and the regular contribution change over time.$2,000 per quarter invested at 5.2%, compounded quarterly, for 15 years; then $2,500 per quarter invested at 8.6%,compounded quarterly, for 20 years.OA. About $2,468,780B. About $701,437OC. About $1,508,863D. About $1,651,469

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

Answered: Find the final amount (rounded to the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time. $649 per month invested at 6%, compounded monthly, for 5 years; then $774 per month invested at 7%, compounded monthly, for 5 years. What is the amount in the account after 10 years? (Round to the nearest dollar as needed.)
Find the final amount in this retirement account, in which the rate of return on the account and the regular contribution change over time. $200 per month invested at 5%, compounded monthly, for 15 years; then $700 per month invested at 7% compounded monthly for 15 years
Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time. $336 per month invested at 5%, compounded monthly, for 4 years; then $765 per month invested at 6%, compounded monthly, for 4 years.
The value of a retirement savings account with an annual contribution of $600 (contributions made at the end of each year, including the last year), and an APR of 5.4% after 40 years is $79,960.27. Find the value of this retirement savings account after 52 years. Round your answer to the nearest cent. OA. $151,304.82 OB. $165,660.72 OC. $160,075.29 OD. $154,695.52 OE. $169,319.35
Find the value of a retirement savings account with an annual contribution of $1700(contributions made at the end of each year, including the last year), and an APR of 5.5% after the given number of years. When the annual contribution is $1700, the value of a retirement savings account paying an APR of 5.5% after 40 years is:(a) 40 years (b) 50 years (c) 54 years
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $ 2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 25 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25 The annuity will extend from the EOY 26 to the EOY 34 What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest annuity table for continuous compounding when i=8% per year
Determine the principal P that must be invested at rate…
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 29 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 29. The annuity will extend from the EOY 30 to the EOY 36. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest and annuity table for continuous compounding when i=8% per year. a. The accumulated savings amount at the end of 29 years will be $275384. (Round to the nearest dollar.) b. The value of the annuity will be $41655. (Round to the nearest dollar.)
Answer the following questions using Excel's RATE, NPER, PMT, PV and FV functions. 2. What sum of money invested today in a retirement fund will permit withdrawals of $600.00 at the end of each month for twenty years if interest is 6% compounded semi- annually?
Determine the principal P that must be invested at rate r = 2%, compounded monthly, so that $500,000 will be available for retirement in t = 10 years. (Round your answer to the nearest cent.)P = $
Find the future value (in dollars) of the investment. (Round your answer to the nearest cent.) $8,000 deposited at the end of each half-year for 3.5 years at 5.25% interest compounded semiannually
Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. $300 per year for 2 years at 6%. $150 per year for 1 year at 3%. $200 per year for 6 years at 0%.

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